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.