The management team of Indian equity specialist Ocean Dial Group (ODG) have agreed to buy out the business from its parent company Caledonia Investments.
Some of the largest funds in the IMA Global Emerging Markets and Asia Pacific ex Japan sectors have significantly increased exposure to Indian equities over 12 months to the end of January.
Nicholas Brooks, head of research at ETF Securities, said investors may only be mid-stage in a bull market for commodities.
Recent years have seen rapid economic growth in India and China. But, with both countries having undergone major change and challenges in 2012, questions about their future potential have led to much debate among investors.
"Only a biker knows why a dog sticks its head out of a car window."
Specialist fund group Ocean Dial Asset Management has launched the Gateway to India fund, which is a 30-35 stock portfolio focused on domestic growth companies.