Quick Wealth Network

Investing in India from the US...?

Hey.. I'm a US citizen (indian ethnicity though) and my parents are indian origin and also citizens. My question is that a friend here had money saved in india in a NRI account. He invested in mutual funds through the bank and returns were about 35% in just the first year, they had invested close to $60K.. that was pretty marvelous returns. But they invested through the bank there in india from the money he had in the account there. My question is, i want to invest in india too Those are emerging and monstrous markets in every field. So how can i invest from here? Which brokerage will be able to invest directly into the Mutual funds and stocks of the indian market? I want to be offered the same funds as the banks in india offer. I've researched and i'm not finding any investment firm here that is big name and investing into india for investors... I want to be able to bring the money back into Dollar currency later. What about Taxes? Any and all info is appreciated...thanks

Public Comments

1. There are several Indian Companies that offer ADR's (American Depository Receipts) that can be bought right through any reliable brokerage firm in the United States. Bank of New York's list of all Indian ADRs http://160.254.123.37/dr_directory.jsp?country=IN see also: http://www.galatime.com/charts/adr.html
2. The best and maybe the safest way to invest in Indian market is through a mutual fund in the US. If you want 100% invested in India, then you can buy Mathews India Fund(MINDX). If you want to diversify across emerging markets, then you can buy Vanguard Emerging Markets fund. There are also some ETFs for emerging markets. If you are good at picking stocks and understand the Indian Companies accounting system, then you can buy stocks through Participatory Notes. You cannot directly buy stocks online like you do in the US because you are a US citizen. Another way would be for your parents to open a DEMAT account using their PAN (Permanent Account Number similar to US Social Sec No) and you giving them money to buy stocks but then you will have difficulty bringing the money back to the US. Or you can buy ADRs of Indian companies. Hope this helps. Harsh