Investors stake €20m on Eastern fund

SINCE October, Irish investors have sunk €20 million into China and India to exploit the range of opportunities offered by two of the fastest growing economies in the world.

Investors looking to diversify their portfolios are sinking €1m per week into a new investment fund set up by Irish Life in early October in order to offer a more diversified investment portfolio.

China and India are two of the biggest potential growth stories in the global economy over the next 20 years. On that basis investors are taking a high risk for what could be significant rewards in the medium to long term.

In the interest of clients, investments are evenly split between the two economies of China and India, as the statistics on both countries highlight the potential emerging in the two economies.

China, the world’s largest country, accounts for more than 20% of the world’s population.

Its 1,000 universities produce three million new graduates each year and the country is undergoing rapid economic expansion that should see it transformed into the world’s second largest economy by 2030.

Forecasts from the Organisation for Economic Cooperation and Development (OECD) has put economic growth at over 9% for China this year and next.

India is the world’s second largest country by population and the largest democracy.

It has a middle class of over 300 million people that produces 1.3 million graduates a year. Up to 50% of the population is under age 25 and in another 25 years projections suggests it will be the third largest economy in the world.

The India/China fund accepts investments of not less than €20,000 and the company said it is securing an average of €1m a week from Irish investors.

Launched in October, the fund is available through Irish Life and is managed by Fidelity International on behalf of Irish Life.