labels: banks & institutions, markets - general
Australian bank sets up fund for investment in India news
08 March 2007

Melbourne: The Commonwealth Bank of Australia has launched an investment fund for Australian investors to who may wish to invest in the Indian market.

According to a report in The Age, the Commonwealth Bank, said its capital series 12 investment fund was the latest in a series of investment funds but was dedicated to investing in India.

Australian investors would now be able to purchase a minimum allocation of $10,000 in the series that focusses exclusively on the Indian market.

A Commonwealth Bank spokesman said he understood that most funds offered investors the chance to put money into funds in a group of emerging economies, namely Brazil, Russia, India and China, but this fund was the first to focus exclusively on India.

"We are the only ones offering the opportunity to invest only on the Indian stock exchange," he said.

The bank said the Indian economy had robust growth of 7.3 per cent a year over the past five years to December 2006, making it the second fastest-growing economy in the world after China.

Commsec chief equities economist Craig James said the growth rates were likely to be maintained, since "Just like China, India is still in the early stages of the industrialisation process."

The Commonwealth Bank's fund launch comes after India Equities Fund Ltd last week started seeking local investors for its Australian share market listing on April 5.

The company plans to raise up to $200 million, with a minimum subscription of $75 million. The Commonwealth Bank investment vehicle is open for subscription until 18 April.


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Australian bank sets up fund for investment in India