International Investing - India

The world is a big place – there are over 190 countries and 7 billion people in the world, which really boggles the mind if you sit down and think about it. In addition to being an interesting intellectual exercise, this fact can also have broad implications for your investments and your financial future. It is easy to stay focused on U.S. firms, news, and events during the day-to-day grind, but it is always important to be aware of your surroundings – especially when it comes to your investments. With that in mind, this series of articles will focus on countries and investment opportunities outside the United States that you might not usually hear about.

As always, be sure to consult a financial services professional familiar with both the potential investment and your unique financial situation before embarking on any investment program.

India

India's economy is almost universally well-known for its information technology and business process outsourcing industries. While these industries, and the firms that operate within them, are indeed an economic story in and of themselves, there are several other economic stories that might make India an attractive option for international investment dollars. Sometimes overshadowed by its neighbor, China, India does have multiple features that make it an appealing market as well.

One of the most powerful arguments for investment in India is related to the demographic and governmental structure of the country. With a young and growing population, combined with a fairly liberalized marketplace and government policies geared toward attracting investment, that alone provides investors with a healthy investment environment. With reforms spearheaded by the head of the nation's central bank, both the stock market as well as the economy as a whole have responded positively. An economy that ranks as 10th largest in the world based on exchange rates, but 3rd when evaluated using purchasing power parity, there are numerous industries that are being developed by the nation as potential investment vehicles.

When looking at investing in India, there are two primary ways to go about it – ADRs or direct purchases. An ADR is basically a certificate held by a U.S. banking institution that represents a certain number of shares in the foreign company, and is held by the U.S. institution. This helps to cut down on the administrative fees and other costs that would otherwise be incurred. For more direct exposure, you can also purchase shares directly from Indian stock exchanges if your broker offers those services to its retail investor base (you and me).

Some of the most popular ADR's available for investment include Tata Motors (TTM), ICICI Bank Limited (IBN), and Infosys (INFY). ETF options for investors looking to invest in India via that vehicle Wisdom Tree India Earnings Fund, PowerShares India Portfolio ETF, and Market Vectors India Small Cap Index ETF.

As always, I have attached some links with more information

Happy Reading!

http://www.amchamindia.com/

http://internationalinvest.about.com/od/globalmarkets101/a/The-Ultimate-Guide-To-Investing-In-India.htm

http://www.marketwatch.com/story/india-a-lucrative-opportunity-for-the-astute-2013-09-03

http://www.investindia.gov.in/?q=investment-opportunities