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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: RealMuLan who wrote (60477)2/21/2005 2:35:49 PM
From: RealMuLan  Read Replies (1) | Respond to of 74559
 
Foreign individuals not sold on India story
Freny Patel / Mumbai February 22, 2005
FIIs have invested $8.7bn in the Indian market in 2004, but wooing individual investors is another matter.

Individual investors are still not buying the India story. Foreign institutional investors (FIIs) have invested $8.7 billion in the Indian market in calendar 2004, and another $1.2 billion in this year, so far. But private banking clients refuse to see India on their investment horizon.

Klaus Martini, global chief investment officer (private wealth management) of Deutsche Bank AG, has a hard task convincing his clientele that the time is ripe to move on and take risks on ‘alternative investments’.

Private bankers are pushing clients to invest in alternate asset class as the money making story is longer in developed markets’ equity and bonds.

Investors need to invest in alternate investment options — such as forex, hedge funds, private equity, commodity and real estate — as well as look at Asian equities.

Alternate investments include India and China in a major way as the growth story — be it in bullion, steel, oil, or real estate — stems from these two emerging economic powerhouses, said Martini.

Asia is changing the world and is changing the investment horizon. Oil prices are high because of great demand from India and China, and over the last 15 years fresh exploration and development have not taken place. With greater infrastructure activity taking place in these markets, metal prices are also on the rise.

business-standard.com