From The Economic Times · ET Special · · 1m 20s
Indian investors' global market routes
Three paths for Indian investors to access overseas markets: mutual funds, GIFT City funds, or direct stocks.
In brief
Three paths for Indian investors to access overseas markets: mutual funds, GIFT City funds, or direct stocks. Indian investors can choose between international mutual funds, GIFT City funds, or direct overseas investments based on their needs and risk tolerance. Originally reported by The Economic Times.
Three access routes
Indian investors have three main ways to access global markets: international mutual funds, funds based in GIFT City, and direct investments through overseas brokerage accounts.
Mutual funds route
Investors can buy units through indian investment platforms and transact in rupees, while the fund provides exposure to overseas markets.
Mutual funds limitations
Overseas investments by indian mutual funds are subject to regulatory limits, and restrictions on fresh subscriptions affect availability of some schemes.
GIFT City funds
These funds can offer exposure to overseas securities through a pooled investment structure with a different regulatory framework than domestic mutual funds.
Direct investing route
Through an eligible overseas brokerage platform, investors can select individual foreign stocks or exchange-traded funds, depending on the markets and securities available.
Remittance rules
For resident individuals, remittances for permitted overseas investments fall under the reserve bank of india’s liberalised remittance scheme (lrs) allowing up to us$250,000 per financial year.
Choosing the right route
Investors should assess their existing holdings, investment horizon, risk tolerance, and the role overseas assets would play in their portfolio before deciding.
The short version
Indian investors can choose between international mutual funds, GIFT City funds, or direct overseas investments based on their needs and risk tolerance.
