Should an NRI Invest in Indian Mutual Funds – Right Now??

It is quite significant that the global stock market ice has melted this year, than any other year from the history. The year 2008 has not only marked the meltdown of some strong capital markets, but also the emerging financial markets like India, China and Brazil. The sensex – Bombay stock exchange index did not see green, but shed blood all around the year; and the color got darker and darker as the time passed by, with US giving the birth to this global financial turmoil.

The sensex has fallen right on its face since it tried to bounce back last week, and this terrible fall was seen in the top Indian equity mutual funds. The funds have not been affected much by the liquidity crisis, as the banks are strong & cleverly driven by the RBI, but still major sharp in their current NAVs were witnessed due to heavy sell off, due to the worries of FII money drawbacks.

No any fund has given a positive return in the gone 8 months, but if we try comparing these funds with other global mutual funds, then we are certainly outperforming the global leaders, as the downside that we have seen is considerably very low as compared to the leaders of mutual funds in the US or UK.

All these major mutual fund schemes in India, have not done bad at all as compared to other major global mutual fund schemes:

1. Reliance NRI equity Fund.

2. Birla Sunlife Equity Fund

3. Kotak Opportunities Fund

4. HDFC Infrastructure Fund

5. SBI Magnum Contra Fund.

All this clearly signifies the fact that the Indian markets are intact and the fundamentals are still pretty strong. All the havoc that we have witnessed in the gone 6-8 months is primarily due to ongoing slaughter that took place in the US housing market.

Analysts in all major broker firms in India believe that the US market turmoil would settle down in the coming few months, and this would lead to a good long term bull market in India; thus it a good time for long term investors to start investing in India at these low levels.

Team (Global Leader in NRI & PIO Investments)

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