$19-bn fund's contra advice to investors: Go against crowd voice on polls

It’s hard to predict whether India will re-elect a majority government next year. But one fund manager has advice for investors: go against the crowd.

If stocks start to rise on expectations of a stable administration, investors must book profit and re-enter should the results confirm the outcome, said Nilesh Shah, who oversees $19 billion as chief executive officer of Kotak Asset Management Co. Conversely, declines driven by fears of a coalition government should be bought into. The reward -- if the vote surprises positively -- will likely outweigh the risks if results indeed signal a multi-party alliance.

“We ask