Pakistan's a failed state and India's the next China, right? Not according to foreign institutional investors.

India now owns the world's worst-performing stock market, according to the Indian Express, and the flow of funds shows no sign of slowing — even as Pakistan pips Inida as a destination for foreign investment.

According to the newspaper:

Stock market returns in India were at an abysmal level (– 14.18 per cent) this year. Countries like China (– 3.96 per cent return), Indonesia (+10.27 per cent), South Korea (+8.07 per cent), Russia (+2.58 per cent), Brazil (– 5.93 per cent) and Malaysia (+ 4.42 per cent) have fared better than India. On the other hand, developed markets like the US showed a return of +1.93 per cent; Germany +11.5 per cent; France +11.46 per cent; and the UK – 0.97 per cent, according to Morgan Stanley Barra data.

That DJIA-linked 401K is starting to look a wee bit better, huh?