Japan’s retail buyers are pouring cash into Indian shares amid bets that the nation would be the subsequent China.

Total belongings of India equity-focused funding trusts in Japan grew 11%, or ¥237 billion ($1.6 billion), in January, in accordance with knowledge compiled by Bloomberg. Factoring within the positive aspects of Indian shares on a yen foundation final month, the figures recommend inflows of about ¥140 billion into India fairness funds, whereas Japanese inventory funds had virtually no web inflows.

The funding into Indian equities prolonged the nation’s lead over its friends as Japan’s favourite rising inventory market, partly because of tax-free funding accounts that began this 12 months. Holdings of India’s shares rose greater than these of some other growing economic system final 12 months, in accordance with an evaluation of presidency knowledge that consider web purchases and asset costs.