U.K. experts want more investment in India
By agencies   |   Friday, 01 April 2005, 20:30 IST   |    2 Comments
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LONDON: Offshore funds in the UK investing in India, such as the HSBC Indian Equity fund, could be worth a closer look for expatriate investors who are willing to accept a high level of risk, according to financial experts. Discount broker firm Chelsea Financial Services Managing Director Darius McDermott said the press was flooded with the news that companies were relocating certain functions to India not only because it was cost saving but also to avoid regulatory and employee responsibilities. He said the HSBC Indian Equity fund had become an interesting, if not higher-risk, prospect as more companies were following suit. Backing his stance, Nottingham-based independent financial advisers (IFA) M2 Financial's Mitch Hopkinson also said Indian funds seemed to be promising. He said the HSBC Indian Equity fund, based in Luxembourg, had a good track record, although recent performance had dropped off slightly. ''The fund could be worth a look with the current U.S. dollar and sterling values as, if the dollar strengthens, there is scope for a double whammy for investors,'' Hopkinson said. He said India was an aggressive long-term sector. ''Everyone talks about China, but slowly people are waking up to the potential of India,'' he SAID. ''It is set to become one of the largest economies in the world over the next 10 years, and population growth has not been held back in the same way that it has in China. One in five Silicon Valley chief executives are now Indian.''

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