RARE Infrastructure, which doubled its FUM from $834 million to $1.53 billion in 12 months, is buying up more assets in India and Mexico within its emerging markets portfolio.

Sarah Shaw, senior investment analyst and portfolio manager - emerging markets at RARE, expects to almost double the fund's exposure to Mexico and India this year, from their respective 5 per cent and 4 per cent.

Shaw's research indicates India is improving its regulatory framework to boost infrastructure investment, while Mexico could be a winner of 2010 "if you believe the US recovery story", she said.

Upping the stakes in India and Mexico are two of several strategies Shaw will put in place to continue the fund's impressive track record in the sector.

The RARE Series Emerging Markets Fund returned 52.2 per cent for the 12 months to December, beating the benchmark's 39.6 per cent.

Since inception in July 2008, the fund has returned 43.3 per cent, above the benchmark's 15.5 per cent.

Meanwhile, Shaw is erring on the cautious side regarding Brazil investments, aiming to cut the country's allocation from 40 to 30 per cent.

"Coming into 2010, we have some concerns about volatility coming out of Brazil via the presidential elections in October this year," said Shaw.

Exposure to China will remain steady at around 33 per cent.

The RARE Series Emerging Markets Fund had $1.8 million in FUM at the end of December, and is a relatively new fund that was established in July 2008.

Shaw manages the fund alongside a $25 million mandate from an Australian-domiciled institutional investor.