Why India Savers Matter for India Funds

As households in India are saving less and investing more, this allows for funds to be further invested in a growing economy. 

Household savings is estimated to be more than $450 billion, and accounts for the largest share of total gross domestic savings. 

"Even as the overall savings rate has been declining, the share of financial savings has been inching up at the expense of the share of physical assets. More importantly, households are showing an increasing appetite for the stock markets," Societe Generale analysts Kunal Kumar Kundu and Rajat Agarwal include.

The iShares MSCI India exchange traded fund (INDA) was up 1.7% in morning trading. The fund is up 24% this year, and up more than 16% over the past year. The iShares MSCI Emerging Markets ETF (EEM) is up 0.7% this morning, and is up 18% this year and up 20% over 12 months.

Read more at Barron's.