Indian mutual funds can now raise money from foreign retail investors. It is just the boost that the troubled sector needed
The floodgates might just have opened for the Indian mutual fund industry. Indian markets have always been considered to be very attractive for investors in developed markets, but mutual funds in India were never allowed to tap retail investors from abroad. Hence, mutual funds used the Mauritius route to attract international investors into their portfolio management schemes (PMS) or offshore funds. This has often been considered cumbersome and the target customer has always been institutional investors. The latest Budget proposal, however, might just change all this.
Infographic: Hemal Sheth(This story appears in the 25 March, 2011 issue of Forbes India. To visit our Archives, click here.)