Global window
Indian mutual fund companies have also done their bit when it comes to providing a global platform for investments. This works in both ways –
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- Indian investors can invest in global markets and securities in a bid to diversify their portfolio.
- Foreign investors can also invest in Indian capital markets, be it debt or equity, to take advantage of the growth in the world’s fastest growing major economy.
From India to global – Global miners, agriculture firms, technology titans and assets classes like real estate and gold are interesting opportunities. Markets like the U.S. and Japan in Asia are attractive. With Indian mutual funds in tie-up with global providers, investors from India now invest in those capital markets without worrying about tax issues, currency conversion challenges and local stock market expertise. In this route, global capital markets also receive long-term Indian investments in a structured and seamless manner. The Indian products act as feeding channels to a larger global product.
From global to India – Sebi in 2016 provided easy entry to the foreign fund managers keen to enter India. For global investment companies wanting to have ‘India play’, mutual funds provide the best suited platform to carry out investments. Top fund houses registered as a Portfolio Manager are permitted to manage portfolios of its clients. In addition to this, such managers render advisory services to offshore clients. By giving incisive advice to pooled assets including offshore funds, insurance funds, provident funds and pension funds, top mutual funds provide a major bridge for overseas money looking for local roads into India.
Thus, mutual funds in India play a very important role in terms of contribution to capital markets local as well as global. By becoming an investment vehicle of choice for the masses and the niche, the day is not far when mutual funds will democratize capital markets with huge growth and deepening contribution.
Happy investing!
Sundeep Sikka, Executive Director & CEO, Reliance Nippon Life Asset Management, writes this piece for FICCI’s CAPAM 2017 Knowledge Paper.
