Indian Bank Outsources Mutual Fund to Australia

While companies around the world look to outsource business functions to India, at least one Indian bank is looking to do the reverse, Forbes reports. With India’s stock market expected to continue to deliver double-digit returns over the next several years, Kotak Mahindra is looking to investors around the world to raise assets. The bank has listed the close-end India Equities Fund on the Australian Stock Exchange after an initial public offering that raised $75 million from 3,000 investors, and there are plans to offer similar funds in the U.S., Europe and Japan. Currently, the bank is setting up a fund in Dubai. C. Jayaram, executive director at Kotak Mahindra, said he expects other banks to offer funds abroad as well, due to increasing interest among investors around the globe in India’s booming economy. “On a three-year horizon, we’re expecting year-on-year returns of at least 15% from the Indian markets,” Jayaram said. “How the fund fares will be a reflection of how the markets fare.”  The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.