A Foreign person resident in India may hold foreign investment either as Foreign Direct Investment or as Foreign Portfolio Investment in any particular Indian company.
If you are a foreign professional working in India and satisfy the below conditions:
- You are not a resident Indian
- You are not a non-resident Indian or Overseas citizen of India
- You are a resident of the country whose securities market regulator is a signatory to the International Organization of Securities Commission’s multilateral Memorandum of Understanding (Appendix A Signatories) or a signatory to the bilateral Memorandum of Understanding with the Board.
You are designated as “Category II foreign portfolio investor“. Amongst other investment options you may:
- purchase or sell capital instruments of an Indian company on a recognised stock exchange in India subject to certain ceilings.
- Purchase and sell units of schemes launched by mutual funds under Chapter V, VI-A and VI-B of the Securities and Exchange Board of India (Mutual Fund) Regulations, 1996;
- trade derivatives on a recognized stock exchange;
- The amount of consideration for purchase of capital instruments should be received from abroad through banking channels through inward remittance or out of funds held in a foreign currency account and/ or a Special Non-Resident Rupee (SNRR) account maintained in accordance with the Foreign Exchange Management (Deposit) Regulations, 2016.
- The foreign currency account and SNRR account can be used only and exclusively for transactions under this Annex.
- The sale proceeds (net of taxes) of the investments made can be remitted outside India or maybe credited to the foreign currency account of SNRR account of the FPI
Mutual Funds
Mutual Fund industry plays a key role in the Indian Financial Sector. This industry has come a long way since its inception in the year 1963.
The Indian Mutual Fund industry is one of the fastest growing sectors in the capital and financial markets in India. Indian Mutual Fund industry has seen dramatic improvements in quantity and quality of product and service offerings in recent years. Over decades, the Indian Mutual Fund Industry has seen a lot of development and growth. It has become more organized and transparent in terms of its functioning, since the inception few mutual fund companies have been offering top notch mutual fund schemes. The expansion of this sector has been tremendous as it has seen growth in all parameters namely – assets under management, number of schemes, funds, fund houses etc. As of Dec 2019 there are over 40 fund houses with over 2000 schemes, across equity and debts schemes managing over USD 300B in assets.
Investing in mutual fund is beneficial as it will help you in diversifying your portfolio. This investment is backed by professionals who help you take wise investment decisions
Mutual funds offer long term returns that range from 7% (in lowest risk carrying liquid funds) and 15% or higher in case of most equity funds over a 5 year period. These inflation beating returns provided by mutual funds are one of the key reasons why many are choosing these market-linked investments over fixed income instruments such as fixed deposits.
Be part of the Indian Mutual Fund industry and grow your wealth in India
Portfolio Management Services (PMS)
Portfolio Management Service (PMS) is a tailor-made professional service that helps you invest in direct equities and create wealth over the long term. These investment solutions cater to a niche segment of expatriate clients.
Our Partner’s Fund Managers have a combined investing experience of more than 30 years in managing proprietary funds across multiple bull and bear cycles. They currently manage an AUM of over INR 300 crores. Their investment strategies are based on data-rich quantitative analysis as well as a thorough analysis of business models, fundamentals, price action, industry dynamics and macros. They pay extraordinary attention to every detail of capital allocation, security selection and execution; leveraging technology and experience to choose the assets that have the best chance of generating wealth for you.
The Portfolio Manager has full discretionary power to manage your portfolio across the below two schemes. However, you are free to review his investment decisions and decide the allocation of your investment amounts into these schemes as per your risk profile.
Long-term Investment Philosophy
This philosophy invests primarily in established businesses (typically large caps) and is suitable for conservative investors with medium-to-low risk appetite. The goal of this philosophy is to grow the invested capital at a reasonable rate with minimal risk. Therefore a portfolio of long-term growth philosophy would consist of established businesses with proven business models that will grow at a conservative rate over the next few years. Most of the sectors invested in under this philosophy include businesses that are not cyclical and have the potential to grow their earnings for several years in future.
Aggressive Growth Philosophy
This philosophy is free to invest across large, mid and small caps, and targets long-term wealth creation with medium-to-high risk. This portfolio consists of smaller businesses that are either growing fast, are undervalued or are turnaround plays. The focus is on leaders across the financials, cement and consumption space. With the economy coming out a ‘low GDP growth/ high inflation’ era into a ‘high GDP growth/low inflation’ era, these sectors are best suited for investment as they promise not only predictable growth but also significantly higher growth than the rest of the market.
De Emerald Partners, along with their partners facilitate the following services
- Open account with the designated depository participant to act as your custodian
- Assist you in registering with the SEBI as a FPI
- Open your foreign currency denominated account
- Open your special non-resident rupee account
- Open your investment account with our Investment Partners
- Maintain proper books of accounts, records and documents