primeforex-blog

[primeforex-blog]

Here’s how to buy Apple and other foreign stocks

Kashyap Sriram, a finance professional from Chennai has been investing in international stocks over the past five years. “In India if you just look at the maker of your phone, you would end up with a name like Samsung, Apple or Motorola, So why not invest in those companies too," said the 30-year-old.

According to the International Monetary Fund (IMF), India’s share in the world GDP, according to purchasing power parity (PPP) terms, is 7.98%, which broadly shows that Indian investors have little participation in the overall world’s economic growth. At the same time, Indian investors have nearly 100% of their portfolios in Indian stocks or mutual funds, which means they are missing out on global economic growth.

In a presentation at the recently concluded Morningstar conference, Shankar Sharma, vice-chairman and joint managing director, First Global, an international brokerage firm, argued strongly for global diversification pointing to the 1997 Asian financial crisis as the trigger that alerted him to single country risk. “If you have single-country, single-asset exposure, you are fated to lose sooner or later, irrespective of what the government or fund managers tell you," he said. The 10-year returns of India’s S&P BSE Dollex (the Sensex converted to dollar terms) is 6.8% compared to 13.6% delivered by US’s S&P 500 (also in dollar terms) over the same period. Similarly, Nifty (through Nippon India ETF Nifty BeES, one of the oldest Nifty ETFs) gave 8.39% over the past five years compared to 17.53% delivered (both in rupee terms) by Motilal Oswal Nasdaq 100, which tracks NASDAQ Index (dominated by US tech companies). Even if India outperforms foreign markets, the lack of perfect correlation between different markets itself reduces portfolio risk.

There is clearly a case for diversifying through international stocks and if, like Sriram, you are interested, here’s how to go about it.

[primeforex-blog]

Gold and foreign currency worth ₹90 lakh seized at Chennai airport

According to a release, the customs officers intercepted Bunty Ashok Ramnani alias Dipen Ashok Suthar, 33, who arrived from Mumbai at the domestic terminal. Upon searching him, they found 6 gold cut bars weighing 11.90 kg valued at ₹43.7 lakh.

He had concealed them in his pant pocket. It was seized under Customs Act 1962 as he did not have any bill to prove that he had purchased the gold. The passenger was arrested.

In another case, the officers intercepted Syed Ibrahim, 36, of Thiruvarur and Abdul Azeez, 51 of Virudhunagar at the departure terminal. The two were bound for Kualalumpur. Upon examining their bags, the officers found that the screws of the stroller were tampered.

When the screws were removed, the officers found foreign currency including, Euro, Pound Sterling and Australian dollars in various denominations to the tune of ₹.45.4 lakh. The currency was seized under the provisions of Customs Act, 1962 read with Foreign Exchange Management Act, 2015.

Both the passengers were arrested. Further Investigation is under progress.