Foreign funds want Indian investors

Indian markets doing reasonably well but Indians still looking for new ways to make money. Foreign asset managers want Indian money. Some of these companies are promising returns of up to 40 per cent.

If you have an appetite for risk and want to earn more bang for your buck, investment advisors are now asking you to look outside India. With the Reserve Bank of India raising the limit on overseas investments to $1 lakh, several funds from countries like Singapore, UK and Switzerland are setting up shop in the country. They are providing investment opportunities in commodities, currency and even art. Director Akhilesh Tilotia says, “They are coming to India after the limit has been raised.

These are hedge funds, they invest in exotic assets with min $100,000 to $50,000. Earlier they were not interested as they cannot send that much money.” London’s Lake shore group, Switzerland’s Tiberius Commodity fund and Cayman Island based Orbani forex fund have already targeted Indian investors. Most of these companies are providing investment opportunities in commodities, real estate and foreign exchange through which they are promising returns of up to 30 per cent to 40 per cent. But experts say that there are other reasons too for financial planners’ enthusiasm towards these foreign players.

Transcend Consulting Director Kartik Javeri says, “You have to compete with everybody else. The only other mechanism of competition is that you give a better incentive to the person and what he does at the back of the entire commission he is going to get.” That’s also the reason why experts advice caution and thorough research before putting your hard earned cash in foreign investment instruments. Experts say that some of these funds are prone to sharp fluctuations of over 10 percent in returns. The rupee’s current strength against the US dollar too is taking the sheen out of investing abroad.

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