Yesterday i met up with a few people from the JPmorgan Asset company - they had pitched up a tent outside my building and they were talking about one of their funds whose mandate is to invest in china.
That got me thinking ( I had seen this advertisement on CNBC some time ago) and trying to understand if this makes sense.
I infact have a small exposure to a global fund-- but the returns are absolutely bad on that-- not sure where all it is investing and i think it is time for me to evaluate if it makes sense.
Here are the pros and cons of investing outside india fund.
Pros
1. The developed markets have give better YTD ( year to date returns) than the BRIC markets ( surprising huh-- with all the hulla about the india growth story)
2. The assumption of the $ declining soon still holds good-- if that happens then these funds have a great opportunity to deliver better returns.
3. It helps diversify your portfolio.
Cons
1. People have started talking about a double dip recession in the US ( even in the recent post in dalal street journal by an infosys sr manager)
2. Greece and the PIGS ( portugal, italy, greece, spain) are in the throes of bankruptcy.
3. If the world market falls -- developed markets are expected to fall faster.
So , do i have an answer to investing outside of india yet-- no. I still need to weigh in the risks and evaluate my options..
till then if any of you have any thoughts-- please share
That got me thinking ( I had seen this advertisement on CNBC some time ago) and trying to understand if this makes sense.
I infact have a small exposure to a global fund-- but the returns are absolutely bad on that-- not sure where all it is investing and i think it is time for me to evaluate if it makes sense.
Here are the pros and cons of investing outside india fund.
Pros
1. The developed markets have give better YTD ( year to date returns) than the BRIC markets ( surprising huh-- with all the hulla about the india growth story)
2. The assumption of the $ declining soon still holds good-- if that happens then these funds have a great opportunity to deliver better returns.
3. It helps diversify your portfolio.
Cons
1. People have started talking about a double dip recession in the US ( even in the recent post in dalal street journal by an infosys sr manager)
2. Greece and the PIGS ( portugal, italy, greece, spain) are in the throes of bankruptcy.
3. If the world market falls -- developed markets are expected to fall faster.
So , do i have an answer to investing outside of india yet-- no. I still need to weigh in the risks and evaluate my options..
till then if any of you have any thoughts-- please share
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