Foreign funds rush to India

04 October 2006

Mumbai: Zurich-based Credit Suisse group, Switzerland's second-largest bank, and Mirae Asset, a South Korean finance major, plan to enter the buoyant Indian mutual fund business.

Robert Parker, vice-chairman, Credit Suisse Asset Management, says that the Swiss finance group would set up an asset management company in India over the next six months.

According to Parker, there was a gap in its network of emerging markets, and this would be filled with the opening up of operations in India. The group has still to decide whether it would operate through a joint venture, or go alone.

Most leading international fund houses, including Merrill Lynch, Goldman Sachs, Franklin Templeton and Fidelity have a strong presence in India.

International funds have invested nearly $45 billion in India. This year alone, they have ploughed in over $3.5 billion.

South Korea's Mirae Asset, like many other foreign institutional investors from the country, has already invested about $800 million in Indian equities. It plans to raise another $200 million from Korean investors for its India portfolio. The company is bullish about India and wants to set up an asset management company here.