Now, NRIs can invest in chit funds
August 26, 2015
KSFE to tap Malayali diaspora, forecasts a quantum jump in chit fund businessCAMS In a significant development, the Centre has recently allowed non-resident Indians (NRIs) to invest in chit funds by making necessary amendments in the Foreign Exchange Management Act (FEMA) regulations relating to permissible capital account transactions. Chit funds are savings products (that can also be converted into a credit instrument) that enable households to save money in a disciplined way as well as provide small enterprises an avenue to raise money quickly. These funds are quite popular in south India and more particularly in Kerala. The move would enable the Kerala State Financial Enterprises (KSFE), an arm of the Kerala state government synonymous with the chitty business in
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On the NRI investment trail – Moving more funds to India
August 26, 2015
Non-Resident Indians (NRIs) earn in dollars, euros or rials, and can invest anywhere in the world. But Meera Siva finds that many of them prefer to invest a large part of their savings in India Vijay Sridharan, 35, is an investment professional, currently in Muscat. He started as a trader in the Indian market but has realised the importance of being a long-term investor. Sridharan is currently underweight on India with only 40 per cent of his assets invested in India. Why? “There have been two-three IPOs in a year in the Muscat market and retail investors have made an average return of 30 per cent in the short term and over 50-60 per cent in the long term. In
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Longevity of investments maximises returns
August 26, 2015
Insights from an analysis of mutual fund data by CAMS In general, the returns generated from the markets are a function of the entry timing, longevity of investment and exit timing. Mutual fund data analysed by CAMS points to a strong correlation between the longevity of an investor’s investments and return maximisation in equity funds.. CAMS identified five growth plans of equity category schemes. This comprised two diversified equity schemes, two balanced funds and one ELSS fund which had the highest NAV. The current corpus of investment in the schemes was further classified based on ageing of investment — less than one year, one to three years, three to five years, five to 10 years, 10 to 15 years, more
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With equities, start in a small way
August 26, 2015
It’s important to be patient and committed for the long term Do the due diligence before investing in a stock and talk to people who understand equities better, urges Vikaas Sachdeva, CEO, Edelweiss Asset Management, in a chat with Business Line. When did you start investing? I used to read a lot about finance and that was when I realized that I was passionate about equities. I started investing in equities through IPOs when I was 20 years old. I used to save all the money I earned by taking tuition to do this.My first investment was in the IPO of Arvind Mills. Investing in IPOs then was very similar to a lottery. Thousands of people used to apply and
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Should you invest abroad?
August 26, 2015
Making investments abroad only to reduce market risk may not be worthwhile It is common to spread your investments across equity, bonds and real estate. But diversifying investments across geographies isn’t. In this article, we explore the relevance of global investments and when it would be appropriate to invest globally. Global investments You invest to achieve your life goals. Earning handsome returns on your investments is a means to achieving that goal. In a goal-based portfolio framework, each goal is considered a liability. For instance, if one of your life goals is to accumulate Rs. 1.5 crore in eight years to meet your daughter’s college education, your liability is Rs. 1.5 crore eight years hence. Matching the currency of your
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