Investing in International Equity after r2i

[old_city_fella]

hello RRK

Now that S&P 500 is listed on NSE, how do u feel about investing in US stocks via NSE - any suggestions?
I guess, I am a little uncomfortable leaving behind funds with US based Vanguard when I know I wont return to US.

thanks for your advice.

[RRK]

It is too early to tell. It is a good beginning.

First let the Indian residents - never NRI- use such facility and build some asset base and bring the economics of scale.

Let us watch and decide. Tax regulation is another thing we need to watch and see if GOI extend the same tax benefits & regulations.

It will be even better if insurance companies offer these schemes under ULIPs, so we can have tax exempted growth.

[old_city_fella]

I guess, I am not following the tax exempt part of it....

[RRK]

Mutual funds under ULIP schemes are tax exempted.

[old_city_fella]

In a 60/40 portfolio of stocks/bonds, I recommend 5% to 12% of portfolio for Indian stocks. (thumb rule is for maximum %, that is max(10%,20%*60%).

Note, I dont consider REIT/Commodities as part of international allocation. A typical 60% portfolio may look like
25%-30% in US stocks,
20%-25% in International
and 5-10% in REIT/commodities.

I am trying to come up with a collection of funds in India that could satisfy the following:

1. 40% bonds.
2. Low ER.
3. Diversified domestically and internationally(including US/developed) as suggested by RRK.

Here is the best I could come up with after researching the Valueresearchonline.com
Suggestions are welcome.

[QUOTE]
Goal: 60% Stocks + 40% Bonds: (moderate risk)

20% Domestic Stocks : Kotak Nifty ER 0.50; 50 stocks, 60% of market weighted.

40% Intern?l Stocks
15% : DWS Global Thematic Offshore Fund ER 0.75; 40% US and 60% Developed non US
15% : HSBC Emerging Market fund ER 0.75 Overseas EM 80%, 20% India
5% : ING Global Real Estate (REIT) ER 0.75
5% : Fidelity Global Assets (Commodities) ER 0.75

40% Domestic Bonds : Sahara Income ER 0.35; Variable holdings, currently 90% CDs

Effective ER 0.54


Morningstar: to view the distribution of stock portion (only) across countries, sectors and investment style - click here. (unfortunately, Morningstar is not including Kotak Nifty and Fidelity Global assets in its analysis).


PS: I am posting the above in this thread assuming it is relevant to "investing in International Equity after R2I".