Friday, December 2, 2011

How NRIs & PIOs can Invest in Indian mutual funds?

If you do not have much of market expertise which is very much needed as a purchase back up then it would be really foolish on your part to invest in India actually. But mutual fund is one big time relief for any kind of investors. For this kind of investment you really do not require knowledge in depth of the Indian markets. If you are just plain and simply interested in mutual fund investment then you can go for it without a second thought. In this article we shall take a look at the steps that you are expected to follow.

You must try and understand the mutual funds that are open-end from India. Liquidity is offered by these and you will also receive the opportunity to buy and sell shares at a value which is related to their net asset values actually. There is no fixed date of maturity for them

Now you must also have this knowledge that closed ended options possess fixed maturities and this period can be of 2 years and can extend up till 15 years easily. You can directly jump into investing in these funds when they are just freshly introduced in the market. After the period of initial issue you may also choose to buy them in the stock market.

You must definitely realize one fact that interval opinions do comprise of features of both open and closed-end funds. Now the shares of these funds from India can be traded over the stock market or it can also be bought or sold at intervals which have been previously set.

Now we should take a look at what are the steps involved in collecting relevant information.

You must appreciate the fact that if you are deciding to invest in the foreign markets then you are actually opening your chances of increasing your income and provide a growth of your capital.

You must first of all find out whether market exposure to India is already something that is existential in your portfolio.

If you can manage a discussion with a financial adviser or broker on your objectives, investment time horizon or risk tolerance then it would be really great. You an also sit with them and determine what portion of your portfolio you wish to contribute in the mutual funds of India.

You must understand that the mutual funds in India is not something that is unaffected by the development of world events. There can be social and political changes that can bring about a change in the mutual funds.

When you wish to invest in the mutual funds in india then you must keep one fact in mind. The currency risk is something that you just cannot choose to ignore when investing in India. So be ready to take this risk actually.

You can choose to do some research work on the Indian mutual funds by taking a look at: nrifinanceguide.com

You must try to find out and obtain as much information as possible on the prospectus and the performance of those funds that you find interesting enough. Take a look at them very thoroughly before you jump for any kind of investment actually.

You have to decide on those funds that would best serve your purpose. For this you can definitely choose to discuss it with your broker or financial adviser. And you must do the transaction through them.

So these are some of the important points that you should keep in your mind while deciding on the Indian mutual funds.


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