INTERNATIONAL ETFs ARE TRADING AT A PREMIUM: WHAT SHOULD INVESTORS DO?
Mint Chennai|December 25, 2024
Most successful investors remain informed, agile, and approach investments strategically
Arihant Bardia

The landscape of international investments via exchange-traded funds (ETFs) in India has become significantly more complex in recent years. Investors are encountering a range of unprecedented challenges when it comes to accessing global markets. Regulatory constraints, along with shifting market dynamics, have contributed to the development of a unique investment environment. As a result, overseas ETFs are now trading at substantial premiums, reflecting the growing demand and limited access to foreign markets, prompting many investors to reconsider their strategies and navigate the intricacies of cross-border investment in a highly restricted and competitive space.

The regulatory stranglehold: The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi) have implemented guidelines that impact international investment opportunities. Mutual funds are restricted to investing only $7 billion in foreign equities and $1 billion in international ETFs.

This story is from the December 25, 2024 edition of Mint Chennai.

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This story is from the December 25, 2024 edition of Mint Chennai.

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