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International ETFs are trading at premiums. What should investors do?


Published on 2024-12-24 03:01:09 - Mint
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  • The landscape of international investments through exchange-traded funds (ETFs) in India has become increasingly complex, with investors facing unprecedented challenges in accessing global markets. Regulatory constraints and market dynamics have created a unique investment environment where overseas ETFs are trading at substantial premiums.

The article from Livemint discusses the growing interest in international investments among Indian investors, facilitated by the Liberalized Remittance Scheme (LRS) which allows up to $250,000 per financial year to be remitted abroad. It highlights the appeal of international ETFs due to their diversification benefits, exposure to global markets, and potential for currency appreciation. However, it also points out the complexities involved such as understanding foreign tax implications, currency risks, and regulatory differences. The piece mentions that while international ETFs provide an easier route to invest in foreign equities, investors must be cautious about the costs, including higher expense ratios, and the need for a thorough understanding of the geopolitical and economic environments of the countries they invest in. Additionally, it notes the regulatory oversight by RBI and SEBI, which ensures investor protection but also imposes certain restrictions and compliance requirements.

Read the Full Mint Article at:
[ https://www.livemint.com/money/personal-finance/international-etfs-international-investments-rbi-sebi-lrs-nav-liberalized-remittance-scheme-smart-investing-11735024378681.html ]
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