How we help you invest in foreign equity markets

In January of 2022 SEBI had mandated all mutual fund houses to stop taking fresh investments in schemes investing in foreign funds and stocks since the limit of USD 7 billion imposed on such investments across the mutual funds industry was crossed.

Since then there has been a broad based correction in global markets and this has pulled the value of mutual fund investments in foreign equities below the USD 7 billion limit. Accordingly SEBI on 21 st June 2022 has allowed mutual funds to start accepting fresh investments in such funds.

So why is this relevant to you and how can we at Prudent Finvest help you make use of correction in global equities by investing in such assets?

Firstly, while the global markets such as S&P 500 index and NASDAQ 100 are down 19% and 32% respectively since January 2022, Indian equity markets have actually rallied 5% since then. Thus there is a huge valuation gap between leading global markets and their Indian counterparts. Also from risk and return point of view the global markets are attractively priced compared to the Indian equity market. Thus there is clearly a great investment opportunity in global equities.

That is where our investing strategy PrudentGain comes in handy. While the client’s capital is entirely invested in Indian equities, our income generation strategies allow the client to reinvest the portfolio income in stocks and sectors which are attractively valued, as global markets currently are. Since the allocation between the passive, long term component and income generating component of capital is fixed, it is very clear that for same level of risk, a higher amount of baseline capital invested by the client will result in higher absolute amount of portfolio yield and thus more money will be available for reinvestment.

Do contact us to know more about our firm Prudent Finvest and our investing strategy PrudentGain and start your investing journey with us.