India’s retail mortgage market is booming as demand is driven by improved affordability. This comes from rising income levels, relatively low-interest rates, fiscal incentives and falling property prices. This should be a long-term trend given low penetration rates and favourable demographics (over 60 per cent of the population are under 65). HDFC’s main competitive strength is that it’s the low-cost provider of mortgages which is a significant advantage in a commodity industry. It also has an excellent long-term credit record.
HDFC’s management is impressive, with strong links to government figures. The average tenure of senior management is around 25 years.
Investment trusts are UK public companies and are not authorised and regulated by the Financial Conduct Authority. You may not get back the amount invested and please bear in mind that past performance is not a guide to future performance.