Smart Investing..

Factors which can lead the Rupee appreciation ·         Base rate effect to kick in  and the inflation numbers will go down and will be very much within the magic figure of 6 ·          Reversal in interest rate cycle ·          Increase in corporate confidence & profitability ·         FII money flows into the country ·         Hike in NRI deposit rates will also help in money flowing into the country due to arbitrage opportunity ·         Allowing Qualified Foreign Investors (QFI) to invest directly will allow money to move into the country. ·         US economy showing sign of improvement to help local market sentiments. This will again be positive to move in money to India. All these factors can lead the Rupee to appreciate and move away from 53 to below 50. Factors which can hinder the Rupee appreciation  ·         Sovereign debt situation worsening in Europe.        The best option today for NRI investors is to take advantage of the dep

A QFI (Qualified Foreign Investor) is a KYC-compliant foreign investor who is a  resident in a country complaint with FATF (  financial action task force)  standards, a signatory to the International Organisation of Securities Commission's multilateral memorandum of understanding. QFIs should not be resident in India or registered with Sebi as a foreign institutional investor or sub-account.  This is a very good news for the markets as well as to the QFI. First advantage is a QFI doesn't have to worry about all the paper work & compliance in opening an  account with an FII and then investing in the Indian market. Going forward a QFI will only need to open a  DP account and a bank account and can use the advisor/broker to help in executing transactions. (More details on the process is still awaited). Secondly the limits on how much maximum amount a FII and a group of QFI can invest into a company has been increased to 10%. This is good as QFI's are mostly long term