David Fuller's view I have been building my personal position in JII since May 2003. It had its worst year in 2008, not surprisingly, down 52%. However 2009 was its third best year, up 80%. Since inception, JII's average annual gain has been 9.9%.

Looking at JII's top positions - the biggest holding is the energy company Reliance Industries at 12% of the Fund - one sees plenty of broadly ranging patterns which have formed over the last several months. This is in line with similar action by India's Sensex Index. If this lengthy pause is followed by a sustained upward break, which I would expect if we are seeing no more than a normal correction within a cyclical bull market, then we should see significant additional gains. My uncertainty is whether this occurs over the next 12 months or so, or considerably later.

JPMorgan think the Indian economy can double in 5-6 years time to US$2 trillion, and they say corporate earnings could double in 4-5 years (Slide 10). They say the Indian stock market could potentially double in 3-4 years (slide 26). That would do nicely but I continue to expect a volatile ride from time to time. Consequently I remain a buyer on weakness and my intention is to lighten my holding temporarily when JII next accelerates higher.