For an Indian investor, there are already plenty of great domestic investment options available. From companies listed on the National Stock Exchange in Mumbai to many of the smaller technology and engineering firms represented in the country’s burgeoning start-ups sector, you’re spoiled for choice. However, there’s a big world out there beyond India’s shores – and it’s one that many traders across the world are making the most of. With that in mind, here are some of the world’s top markets for Indian investors to think about shifting their attention to ward.
Australia has a GDP of over US$1 trillion, which means there’s plenty of economic activity going on there for an investor to become involved with. But aless well-known advantage of investing in Australia (and, indeed, in the wider Asia-Pacific region) is that there are plenty of resources available to help you make your buying, selling and holding decisions. Great Australian and Asian share information is available at The Bull, and there are several business newspapers published online.
For much of history, cash has always flowed to Europe – and the current day and age is no exception. Many companies benefit financially from Europe’s position as a trading hub. The presence of major airports like London Heathrow and Frankfurt, for example, make the cost of doing many types of business lower – and as a result, profits are higher.
Investing in Europe is often seen as attractive given the region’s excellent skills base, and this is at least in part responsible for the economic success of the region and the shareholder profits that this drives. Even though Europe experiences volatility (Brexit, for example, has affected everything from the value of the euro and the pound to the price of some European stocks), advantages like infrastructure and strong skills bases are long-term in nature and are likely to outweigh any temporary political upsets.
Investing in China comes with its advantages and disadvantages, and both need to be weighed up carefully before a decision to enter the market is made. The advantage, of course, is that the country is a real economic power house. It has a number of lucrative exporting firms which make huge profits, and recent economic data indicates that export rates are growing by double figure percentages year on year. However, it’s tough for foreign investors to break into the Chinese market. It’s usually necessary for foreigners to invest in what are known as designated “B” shares – but these are now somewhat illiquid, making them less attractive.
Speculating abroad is a sensible decision for many reasons, and it’s one that a number of Indian investors are now looking to do as the economy becomes increasingly globalised. From the export-heavy firms of China to the highly-skilled companies available in Europe, there are lots of opportunities around the world for an Indian investor to consider.