Doha Bank to offer mutual funds in India

Doha Bank in association with Investnet, is looking to offer mutual funds in India. This follows the bank having acquired a 49 per cent stake in Investnet following a strategic tie-up between the pair.

Under the new dispensation, Doha Bank Deputy Chief Executive Officer R Seetharaman is to be chairman of the company following a re-branding exercise, according to Investnet Managing Director Prince George.

Doha Bank recently received approval from the Securities and Exchange Board of India (Sebi) to act as a Foreign Institutional Investor (FII).

George told The Peninsula yesterday that Investnet will be concentrating on non-resident Indians (NRIs) looking to invest in India, which is showing major economic growth and is rated as a fast-growing emerging market. "NRIs often do not have much time on their hands so we offer portfolio management schemes. We have tie-ups with 18 mutual funds in India," said George.

The company is hoping to massively increase revenues over the next three years as well as expand its branch network in India from the present 120 to around 300 in the near future. Largely concentrated in the southern Indian states as well as places like Maharashtra and Gujarat in the west, Investnet is proposing to make inroads into cities like Kolkata and New Delhi.

George observed that NRIs are diversifying their areas of investment. "Perhaps 10 years ago, 90 per cent of investments were going into fixed deposits," he said. But nowadays, real estate is attracting the NRI investor but not necessarily as a means for speculation. "NRIs are not speculative. They look at good assets that will give good returns," he said.

Speaking of the NRIs in Qatar, George said: "Most NRIs here have surplus money and are showing more intent to invest. The quality of the investor here is high."

He said though India's GDP is growing at a furious rate, the corporate world's performance is even better. While India's capabilities in software are well-known, industries like steel, petrochemicals, telecommunications and the like are proving to be world-beaters. "Stocks in India are high-risk but also offer high returns. Several companies are offering 20 per cent and above in returns while mutual funds are these days offering 20 to 50 per cent over the initial investment. This is mind-boggling," said George.

Investnet has already opened a marketing and customer support office at Doha Bank's International Relation Centre. Though now there is skeletal staff on hand, the employee numbers are expected to be shored up soon.

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