Best returns for NRI investors in 2007

In 2007, where can NRIs get the best returns for their investments in stocks? The quick answer is, in the BRIC (Brazil, Russia, India and China) countries - away from the traditional markets of the US, Britain, Japan and Europe that offer more security but lower returns.

Since money flows instantly to obtain the best returns, the entire telecom-linked globe is one investment market today. So bankers and financial advisors keep tracking every economy for best investment returns. Some developing economies such as Hong Kong, Singapore and Mexico also offer healthy returns. In this scenario, 25 million NRIs living in over 110 countries have to be alert where their funds can get the top returns.

"Another major factor for NRIs is the exchange rate," said Sanjay Durgan, a certified financial planner and CEO of AbunDanze. "NRIs have to take (note of) the exchange rates of the country from where they are investing and the country in which they are investing. The gains from the stocks can be increased or wiped out by currency movements.

"Finally, does the NRI investor have the time to research the markets and the stocks he should be investing in?" asks Durgan, who specialises in mutual fund investments for NRIs. "It takes training, time and patience to research the market and NRIs are very busy people and cannot devote this much time daily. So a practical solution is not to take 'the direct route' by investing in stocks but 'the indirect route' and go for mutual funds where professionals manage your investment."

Then the million-dollar question: where to invest? Why not the other BRIC countries?
"Of course yes, if there is a fund giving access to these markets. The Indian story is a familiar story, something the NRIs can relate to. Today, NRIs are proud of India and want to be a part of this success story."And NRIs want to invest in this growth and cannot be left out of this exciting action and also reap good returns in 2007.

Source: hindustantimes.com/