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| NRI money in mutual funds rising |
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It's not just that Indians are only relying on India growth story; even others do, like our foreign partners so called NRI, FII, etc. As per latest data form central bank, foreigners, major chunk of investments has seen good amount of rising trend in the Indian mutual funds industry, since 2003. They hold around Rs 1,028 crore worth of units of Indian mutual funds in 2003. The figure has increased sharply to Rs 2,663 crore in 2004 and Rs 4,966 crore in 2005, as per central bank data. It is not clear which country contributed the most to the MF industry as most funds doesn’t disclosed country wise list, As a result, unspecified countries account for over 70%. |
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NRIs - reason to invest |
The ever growing economy, with robust growth & well diversified industry, India seems to be a desired destination for NRI’s. It’s assumed that Indian external sector performance will continue to be good, thus one needs to look at the outsourcing revolutions that is taking place across the globe, in not only the services but also the manufacturing and research sectors. On the investment side, moderate rules and better and well regulated markets, with looking at investors sentiments which are drawing in capital to fund India's growth. |
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Dynamic policy by government |
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It has been close to 2 decades since the reforms process has started, with the main push coming with the twin devaluations in 1991. During this period numerous developments have taken places that have contributed to the flexibility of the Indian economy. Key amongst these are the opening up of the Indian economy to foreign investment, strengthening of the domestic financial system, liberalization of imports, rationalization of interest and exchange rates, a more conducive environment for investing in industry, and of course, the people-intensive services sector.
This resilience is clearly reflected in the fact that average economic growth rates have moved up and India has emerged as one of the fastest growing economies in the world. |
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Priority focusing agriculture, infrastructure |
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In recent times there has been a renewed vision on two key but long ignored segments of the Indian economy – agriculture and infrastructure. The focus on agriculture and related activities, which supports approximately 65% of the Indian population, should provide a new thrust area for economic growth. |
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The global outsourcing boom |
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Indian had become a major hub for business process outsourcing companies, but there is much more to this outsourcing boom than is commonly understood. Fortunately, India stands to benefit from it in a great measure. |
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Well equipped & regulated capital markets |
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The Indian stock and debt markets, including banks and mutual funds are well regulated by the Securities and Exchange Board of India and the RBI, various measures are taken to protect investors’ sentiments & interest. In terms of infrastructure the Indian institutional framework is improving rapidly, backed by a strong financial system. |
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