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The India Fund Inc. now trades at a nearly 10% discount compared with a nearly 20% premium same time last year. The Indian stock market BSE index is now back over 14000 and stocks are doing well, however the premium on IFN does not seem to be improving. This is probably a good time to buy.

Premiums on Indian ADRs are also much lower than they used to be and it may be a good time to get in to those too. TTM is up about 18% since I bought some before my last post and that is without any increase to the premium. If the trend continues, the premium will rise too.

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I opened a position in Tata Motors Ltd. a few days ago when the share price in Rs. dropped below 700. According to my ADR premium tracker, the premium on TTM had dropped to almost nothing (currently it is about 2%). Also TTM had dropped about 20% YTD then so I took that as a good chance to do some bottom feeding on this stock.

Tata Motors is one of India’s largest automakers and has shown consistently strong sales growth by meeting market needs. Tata also plans a 100,000 Rs. (roughly 2500$) no frills car for the Indian market and if successful expectations are for it to be a strong success. TTM, though already one of Indias largest companies has room to expand along with the growing Indian economy and it also has the potential to grow through exports (which so far are not really noteworthy).

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Over at Yahoo Finance! - I read this article from Marketwatch - Young investors heading to the Internet for financial help. If you are in your 20s or 30s and are reading this, you must check it out. After having read that, check out this article from Motley Fool - one of my favorite finance sites (even though they try to pitch their own services at the end of almost every article) - The Lure of Great Wealth. Let me give you some easier to acheive calculations than the article. What if you contributed only 4000 combined in the IRA and 401K, not the 19000 mentioned in the article?. With the rate of 15.4% in that article, you end up with 8 million instead of 37 million - not too bad eh? and doable for anyone! What if you get an average return of only 8% on that instead of 15% on the 4000 - you end up with a million - still not to shabby.

I’m a big supporter of automatic contributions to savings and to acheive 4000 a year, you only need to contribute 333$/month - an easy enough target to reach.

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