Fragile Five days past as funds pile into India, Indonesia

India and Indonesia were once famously lumped together as part of Morgan Stanley's "Fragile Five". A decade later, they are investor favourites.

The outlook for the bonds and currencies of the two Asian behemoths has brightened following successful programmes of reforms and fiscal restraint, according to fund managers including Fidelity International, Robeco Group and abrdn. Even elections in the two countries this year are unlikely to spook investors.

The original Fragile Fivewhich also included Turkey, South Africa and Brazilreferred to nations perceived to be most at risk due to their heavy reliance on foreign investment to drive growth.