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Mortgage loans for Indian middle class on the increase

The Danske Invest sub-fund, India, has invested in a company that is providing mortgage loans for the increasing Indian middle class. The company has experienced 20% annual growth rates , and this development is expected to continue.

More money to spend, an increasing middle class and the dream of being master in one's own house. These are the ingredients of one of the investments by the sub-fund, Danske Invest India. The sub-fund has invested in an Indian company which is providing mortgage loans for India’s middle class. There is great demand for this type of loan, says Mark Gordon James from Aberdeen Asset Management, who is managing the sub-fund.

”We have invested in a company called Housing Development Finance Corporation, HDFC. It is a company that is providing mortgage loans for India’s middle class. The company has grown 20% annually, and we expect that the company will continue to grow," says Mark Gordon Games. He is pointing out that particularly the demographical development is very important for India and that the middle class is becoming increasingly important.

Fast growing middle class
We see a fast-growing middle class, the access to education has improved, and the country is currently undergoing numerous reforms. This implies that the productivity in India will increase,” Mark Gordon James explains. He is located at Aberdeen’s offices in Singapore where he together with his colleagues is finding investment opportunities for Danske Invest. In selecting stocks we are particularly focusing on the increasing middle class and the increasing level of private spending.

”Our strategy is to identify companies with stable growth and low risk, and here we are particularly focusing on companies that are exposed to domestic private spending,” says Mark Gordon James.

The company is also included by the sub-fund, Danske Invest Global Emerging Markets, which is managed by Aberdeen Asset Management, too.


 

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