Don’t go it alone in India
Financial planners seeking to take advantage of the booming Indian market must do their homework to avoid potential pitfalls, according to a renowned expert on investing in India.
John Pereira, managing director of Olympus Funds Management and India Equities Fund, said that while there are many opportunities for advisers in India, which he termed a “booming global superpower of tomorrow”, and other emerging Asian markets, there are many tricks for young players.
Pereira, who is also the mission leader for next month’s inaugural India-Australia Financial Forum, said there are 10 key things to bear in mind when considering investing in India.
First and foremost, in his view, is consulting local contacts because going it alone in an unfamiliar and complex market “is not an option”.
Pereira also suggested targeting blue-chip stocks, which he said are typically rewarding in a high-growth economy, investing in new industries such as business process outsourcing and information technology as well as selected subsidiaries of leading companies.
He said India’s wealth management and mutual funds sectors also offer significant investment opportunities, as do certain older sectors of the economy, such as agriculture.
Pereira also touted the benefits of familiarising oneself with Mumbai, India’s financial capital, prior to investing and keeping abreast of developments in market deregulation.
“The old principle of diversify, diversify, diversify applies in India as well,” he said.
The India-Australia Financial Forum will be held in Mumbai and Delhi, India from November 19-22.
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