India is one of the hottest markets on the planet -- returning +73% in 2007 alone -- and there is no easier way to gain access to this market than with a solid fund. Based on backtested data, which newly launched, low-cost fund would have returned +1,010% over the last ten years?

A. PowerShares India (PIN)
B. India Fund (IFN)
C. WisdomTree India Earnings Fund (EPI)
D. Eaton Vance Greater India Fund (ETGIX)
E. Morgan Stanley India Investment Fund (IIF)
 
Published: April 21, 2008

The correct answer is      (C.)  WisdomTree India Earnings Fund (EPI)

The new WisdomTree India Earnings Fund would have returned +1010% over the last ten years according to backtested data -- handily beating the benchmark MSCI India Index by +340%. That translates to an additional return of $34,000 dollars on an original investment of $10,000... and this extra gain was with less volatility.

Why would EPI have performed so well? In the past decade, the booming Indian economy has been growing by leaps and bounds and its stock market has soared in tandem. This exchange-traded fund (ETF) tracks the performance of roughly 150 Indian companies representing more than $800 billion in combined market capitalization. And because WisdomTree weights index components by annual net income, the portfolio contains the country's largest and most-profitable firms, reducing risk significantly.

Best of all, as a fund trading on the NYSE, EPI cuts out the necessity of individual investors having to deal with the strict regulatory challenges the Indian government puts in place for foreign investors. You can simply buy a single share of the fund and have access to some of India's most profitable firms -- at an expense of just 0.88% each year (compared to some India-focused mutual funds that charge upwards of 2.64%).

EPI is just one example of the types of funds featured monthly in the "New Fund Alert" section of Nathan Slaughter's ETF Authority newsletter. Each issue, Nathan focuses on one new fund that could lead to big profits for investors and provides thorough research and an in-depth profile to help you gain from the market's most promising new ETFs and  closed-end funds. To read more about Nathan's take on EPI -- including the one pitfall investors need to know before investing in the fund -- you must be a subscriber to the ETF Authority newsletter. To learn more, please visit this link.

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