"Emerging markets are growing faster than developing markets, and that gap will grow wider," says Gonzalo Pangaro, manager of the T. Rowe Price Emerging Markets Stock Fund (PRMSX). Of course, that didn't help these young economies much in late 2008, when their stocks got especially hard-hit. By then, everyone had thrown in the towel on the "decoupling" of emerging markets like Russia, India, China and Brazil from the more developed world. Pangaro's $3.4 billion no-load fund, which carries a 1.24% expense ratio, is up 40.6% year-to-date, after tumbling 60.5% in 2008. Its trailing three-year loss is 0 .56%, and its five-year average is a very respectable 12.63%. Given the renewed interest in emerging markets and Pangaro's long-term results, particularly in Latin America, this T. Rowe fund looks like a solid choice in sometimes-dicey markets. Despite this year's unexpected surge, Pangaro sees continued strong returns. "It's still an attractive opportunity for long-term investors," says Pangaro. The key for the next few years, he adds, is picking the right emerging markets. His portfolio right now is allocated with 44.6% in Asia, ex-Japan, 29.1% in Latin America and the remainder spread across a variety of regions that include Europe, the U.K. and North America. At 22.5%, his largest Asian exposure is Hong Kong and China, where the government is targeting 8% growth in gross domestic product. While exports are slowing, investments and consumption are growing, helped by a strong government-stimulus package. Pangaro's largest holding is Beijing Enterprises Holdings (392.Hong Kong), a gas utility, expected to grow 20% a year for the foreseeable future as the company connects to new homes. He has 9% of the fund's assets in India, and he especially likes HDFC Bank (HDB), a mortgage lender. Why would anyone want exposure to mortgages anywhere? The situation is very different there than in the U.S., Pangaro explains, because there's "a big housing deficit, mortgage rates are going down, and HDFC is a market leader." The fund manager has Brazil as its second-largest country holding, at 18%, with national oil company Petrobras (PZE) his favorite, because of its "very attractive growth in production." He cites new offshore discoveries that the company's management claims could double their total oil-and-gas production by 2020.

Phoenix Fund Rises on Indian Bank, Swiss Stocks
Peter Newell, managing director of Vontobel Asset Management, subadviser to the Phoenix Foreign Opportunities fund, names his favorite emerging market stocks, including India-based HDFC Bank, America Mobile and China Mobile.

Click here to watch the video.

I wanted to have a financial stock away from the US bank. Found this one in India, high growth.

Play on india financial markets with exceptional growth past year

Proxy for India Growth Story

indian bank/not a risk from american financial crisis

emerging growth stock from India

P/E of 29.43 and a yield of 0.6%

growth; stabke in volatile market

Sound bank in India that has continued to give great returns to their investors over the past few years. I personally believe that India is ready to break open