India beats China

New research confirms that fund managers should put their money in Indian stocks, not Chinese ones.

One of the great debates that exercises the minds of fund managers - and will continue do so - is China versus India as a stock investment.

The two countries are rightly viewed as the growth engines of Asia and as key drivers of global trends such as outsourcing and the relocation of manufacturing capacity. Both are also enormous domestic consumer markets or are tipped to be, with China commanding a population of 1.28 billion people versus 1.05 billion for India.

Historically, India has played the ugly sister to China's Cinderella whenever comparisons have been made. China's greater headline GDP growth and its status as the world's biggest recipient of...

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