labels: finance - general, investment - general, mutual funds
Foreign funds rush to Indianews
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.

EM Capital Management LLC, a US-registered firm, also plans to invest about $400 million in Indian equities. And UK-based hedge fund, Kuvera Capital - which has set up a presence at the Dubai International Finance Centre - also plans to launch operations in the Indian markets shortly.

Another major investment from the Gulf is by Forsyth Partners, a UK-based boutique fund manager, which aims to raise its exposure to the Indian markets to $250 million in about two years. The Forsyth India Opportunities Fund manages $120 million through 16 India equity funds. It is the only fund-of-funds available internationally, using domestic Indian funds.

Forsyth offers a range of fund-of-funds investment options and manages over $3.5 billion in assets. It recently shifted its global headquarters from London to Dubai.

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Foreign funds rush to India