Context:
India is now the most preferred equity market in the Asia-Pacific (APAC) region, according to BofA Securities’ May 2025 Fund Manager Survey (FMS), outperforming Japan, China, and other regional peers.
Key Survey Findings
- India leads with 42% net preference, up from prior months.
- Japan follows closely at 39%.
- China improves its standing to 6% (previously lowest).
- Singapore (3%) and Thailand (least preferred) remain less favoured.
- Taiwan and South Korea both registered -19% net preference, showing continued underweight sentiment.
Focus Themes in India
- Infrastructure and consumption remain the two dominant themes attracting fund manager interest.
- India is seen as a beneficiary of global supply chain realignment, especially post-tariff adjustments.
Market Sentiment and Economic Outlook
- Global optimism rising:
- Net 59% expect a weaker global economy, down from 82% last month.
- Net 77% foresee a weaker Asian economy, improving from 89%.
- Earnings slowdown fears ease:
- Net 58% expect earnings to slow, compared to 78% previously.
- Room for upward earnings revisions as consensus estimates stabilize.
Survey Methodology
- Conducted by BofA Securities from May 2–8, 2025.
- 208 panellists with $522 billion AUM participated.
- Regional APAC survey had 109 respondents managing $234 billion AUM.
