‘Emerging market portfolios may raise India allocation as AI trade turns volatile’: Morningstar

Global emerging market portfolios, which have been underweight on India, could increase allocations to the country as rising volatility around artificial intelligence (AI) stocks prompts investors to diversify, according to Wing Chan, head of manager research – Europe and Asia Pacific at Morningstar.

Chan said some capital could move back towards markets such as India and China as investors reassess portfolios that have become increasingly concentrated in US equities and technology stocks.