Mirae Asset NYSE FANG+ ETF

Kanad-Bandyopadhyay-29373

What is the future of this ETF in India ? Will RBI ever lift the ban to enable Mirae to invest more dollars in the Global ETF of this ? What we have is a restrictive environment wherein fresh investments from India are banned. So globals prices are not tracking Indian prices of this ETF. There is an artificial scarcity deliberately created by RBI. What will be the future prospect of this ETF ?

sharpelyAdmin

Hi Kanad,

Very interesting question.

Yes, it is indeed an “artificial scarcity” created by RBI. It seems that we are still extremely scared of capital outflows as if it were 1991 (the BOP crisis). Indian policy makers (both in Finance ministry and the RBI) are very cautious and even a USD 700 bn on forex reserve won’t give them the comfort.

So it is very difficult to speculate if RBI will ever increase the limit in foreseeable future. Having said that, you can always explore the LRS route to invest directly in US (or any country) based ETFs. If you are a resident individual, you and your family (including minors) can remit up to USD250,000 per individual, per financial year.

https://www.hsbc.co.in/international/liberalised-remittance-scheme/