Caution against index investing in India

Oslo

QUANTUM Advisors, which picks Indian stocks for Norway's US$860 billion wealth fund, says investors should stay away from index investing in Asia's fourth-biggest market.

Investing in indexes is a poor place to put money because you don't necessarily go into the companies with the most potential, said Ajit Dayal, the director of the Mumbai-based fund, which manages US$2 billion in Indian equities.