India- An Awakening Giant
- Need based consumption led economic growth
- One of the fastest growing economies in the world
- Expected GDP growth in excess of 7% pa. in the next decade
- Huge investments required in Infrastructure
- Hard- Roads, rail, port, dams, energy/power etc.
- Soft- Education, healthcare, logistics etc.
- Favoured destination for FII & FDI investment
- Favorable demographics
- 65% of population below 35 years
- Huge middle class
- Increasing urbanization trend
- Independent judiciary
- Robust and well regulated financial markets
What’s in it for NRIs
- ROI expected from Indian markets in excess of 15% p.a. for the next 10 years atleast
- Driven primarily by equity & real estate
- Diversification to reduce market risk
- Participating in the India growth story
- Easy repatriation possible
The Wealth Management Process
Mutual Fund Documentation
- Equity, Debt & Hybrid
- AMCs available-Reliance, ICICI Prudential (exc. US & Canada), HDFC, DSP Blackrock, Birla, Canara Robeco, IDFC , SBI etc.
- Best performing funds in almost all categories belong to the above AMCs
- Index beaten by approx 10% p.a. over 3-10 years period consistently
- Diversified funds will continue this trend for atleast next 10 years.
Portfolio Management Service (Equity PMS)
- Know your customer (KYC verification)
- PAN card and address proof (Indian & foreign)
- A simple form with a photo
- Forms to be signed for separate AMC with cheques
- Cheque to be from NRE A/c in case of future repatriation possibility
- Online platform available for transactions
- Online portfolio view
- From various AMCs- ICICI Prudential (exc. US & Canada), Birla, HSBC
- Various themes available e.g. large cap, Midcap, Dividend yield portfolios.
- They can sit in cash when the market turns bearish unlike MFs which have to remain invested.
- Documentation specific to each fund house and more exhaustive than MFs
- Residential properties generally appreciate better
- Approx.10% appreciation, rental income 3-5%
- Commercial properties provide a better rental income
- Approx 10% rental income and 5% appreciation
- Average 15% pretax returns from either of the above
- Can invest in Residential (2 nos.), Commercial (no restriction) & Developed plots
- Can’t invest in Agricultural land
- Loans if required, are available for residential property
- In line with the dynamism of the Indian markets
- Sophisticated products like REITs, P E funds etc.
- Art and art related funds
- Life Insurance & pension funds for long term equity exposure
- General Insurance for your assets in India
- Non discretionary equity PMS (except US and Canada)