FCNR(B) is now Plan A for Gulf NRIs, leaving India-focused funds behind
Dubai: India-focused fund managers looking to raise billions of dollars from Gulf-based NRIs are facing stiff competition from the Reserve Bank of India's foreign currency non-resident (bank) deposit window, with investors increasingly preferring guaranteed returns under the scheme over private and public market investments.
Industry executives estimate that between 60%-80% of capital that would typically have flowed into India-focused funds and other alternative investments products from Gulf-based NRIs is instead being channelled into FCNR (B) deposits offering attractive dollar returns.
Industry executives estimate that between 60%-80% of capital that would typically have flowed into India-focused funds and other alternative investments products from Gulf-based NRIs is instead being channelled into FCNR (B) deposits offering attractive dollar returns.
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