How to Invest in India
Also, the fact that the English language is widely learned and spoken in India has made India an increasingly popular location for outsourcing jobs from the United States, Britain, Canada and Australia that can be performed remotely, including those in the information technology and customer service sectors.
Fortunately, those interested in learning how to invest in India have a growing number of choices available to them.
The Rupee’s ISO 4217 currency code is INR, and it is generally traded as the counter currency in currency pairs. Due to the growing interest in how to invest in India, currency pairs such as USD/INR and EUR/INR are increasingly being offered by online forex brokers as trading instruments for those who open a forex trading account.
Since a currency can be looked at as the stock of a country, investing in India’s performance relative to that of the United States would be as simple as selling USD/INR. Also, since the Bank of India’s benchmark repo rate is typically higher than the U.S. Federal Reserve’s benchmark interest rate, holding the Rupee versus the U.S. Dollar typically has the added benefit to investors of positive carry.
In addition, while purchasing Indian stocks directly via the Indian Stock Exchange is possible for institutional investors, it is currently difficult for foreign individuals that lack personal or family ties with India.
Nevertheless, some equity related investment choices exist, such as buying American Depository Receipts or ADRs that are issued by major Indian companies in the United States. Another way to invest in India is to buy into a mutual fund or Exchange Traded Fund (ETF) that holds a substantial portion of its portfolio in Indian stocks, bonds or other Indian investment assets.
By InvestorGuide Staff
Posted in ...Investing