June 2, 2021


There has been a paradigm shift in the mindsets of people that have existed for centuries which has switched dramatically. As record-high inflation rates have surpassed, lifestyles that have been built over decades can no longer be sustained by the current existing income levels. Investors today are weighing their alternatives to building a luxurious and comforting lifestyle

Todays’ twenty-first-century Investor is well versed and cognizant about the functioning and performances of markets around the globe. Geographic blockades no longer seem to be a hindrance for pursuing contemporary and advanced investment prospects and for generating exceptional returns for the investors. Investors are now switching to Global Funds, which enables and permits them not only to expand but also diversify their portfolio and invest globally

A Global Mutual fund is one that invests in businesses all over the world, including those in the investor’s home country. It aims to find the best investments for the investor from a large pool of securities around the world. A global fund can be either engaged in a single asset class or can be spread over many.

Structure of Global Mutual Funds

  • Direct Investment

There are assets that are managed directly by a local fund manager. Rather than relying on an offshore investment manager, the local fund manager ensures that your portfolio is well-managed and orchestrated

  • Indirect Investment   

They are referred to as Feeder Funds which pool money from local investors and then transfer the corpus to the parent fund, which is administered offshore, OR pure fund of funds, which invest the investor’s money in a portfolio of offshore funds,

  • Mix Investment (Foreign + Domestic)

These funds have a mix of both domestic and international mutual funds. As a result, they are a safer option for moderate risk-takers because they have reduced exposure to global equities while keeping an emphasis on the domestic market, which improves and enhances the tax efficiency of the portfolio.

  • Specific Region Investment

While selecting the Global Mutual Funds, the investor can invest in a specific country or region of her/his choice. The Investor needs a thorough understanding of the region/country she/he chooses to analyze the growth potential, returns, and exit at the appropriate time

These funds are more versatile because they are not limited and restricted to a specific region or country and it can provide investors with a more diversified exposure. These are usually managed by Fund managers, who have the requisite skills and proficiency in managing an investor’s portfolio and can identify and analyze prospects from all different parts of the world

  • Specific Theme Investment

These funds invest globally in particular themes or growth prospects. The Investor may invest in minerals, oil, gold, agriculture, mines, and other diverse themes or sectors. These funds are perfect to invest in during a growth cycle because they give investors access to segments that aren’t present in the domestic market. But the Investor must make that their portfolio isn’t overburdened by these types of assets, as limited exposure to a single theme will put investors at risk

Why Invest in Global Mutual Funds?

Diversification and Growth

It helps the investor to spread their Investment Portfolios among various foreign companies, markets, and securities in addition to their home country’s, as Global Mutual Funds invest into a wide range of securities in different parts of the world in different industries giving the Investors’ diversification in multi-folds (geographical, currency, industry). As a result, the risks that the volatility of a single security or the uncertainty in a single country or currency would have an adverse impact on the portfolio’s overall performance are reduced.

Hedge against Currency 

When we look at the rupee’s pattern in relation to the dollar, It is evident that it has just declined greatly. The Indian rupee which was worth Rs. 45 in 2000, is now worth Rs. 75. There are a variety of reasons for this depreciation, varying from global turbulence to growing inflation to venal bureaucracy to poor fiscal policies. Today, Investing in Global funds will help you take advantage of the rupee’s depreciation. By investing in rupees, you gain exposure to foreign exchange as you invest in these global funds. Any increase in the value of the foreign currency, as well as any decrease in the value of the domestic currency, would increase the investor’s returns. Since they offer a hedge against currency fluctuations, they must be included in the Investor’s Portfolio


For tax purposes, all mutual funds that invest in global markets are referred to as Non-Equity funds. As a result, Tax levied on Global Funds are in the following manner:

– The Investor sells the units within three years of the time when she/he bought them, the gains are credited to her/his taxable income and charged according to the slab rate. (Short Term Capital Gains)

The Investor sell the units after three years from the date of acquisition, the gains are levied at a rate of 20%, and indexation advantages (Long Term Capital Gains)


Investors should treat global mutual funds as a tactical allocation and keep a close eye on them while they are investing in the same, as the returns from these funds are not necessarily in line with those from Indian Mutual funds. Effectively, once the investor invests in those accounts, be mindful of both the advantages and disadvantages. Begin with small investments to get a better understanding of how those investments function before committing to larger investments in a foreign mutual fund. Invest only after you’ve developed a well-diversified exposure to mutual fund investments in India, and give yourself 5-7 years to do so.

This article is contributed by: Ms. Dishita Sheth, Intern at Ajmera Law Group 




July 22, 2019

Since independence in 1947, the Indian economic era can be divided into three main periods:

  1. 1947 to 1993
  2. 1993 to 2007
  3. 2007 to the present day.

The first period is most accurately described as pre-liberalized – a time when pre-liberalisation of the economic policies was taking place in India.

We may regard the second period as the start of economic liberalization– this is the time when inbound investments in India began in earnest.

The third period, in which we currently find ourselves, is the period of optimum economic liberalization – a time when inbound and outbound investments to and from India are in full swing.

The wave of economic liberalization seen in the past few years has catalyzed growth in the number of HNWIs in India. Wealth generation is at its peak, lifestyles, standards of living, travel, education, weddings, savings, retirement, and many other important aspects of life have changed drastically since 2007.

One metric by which we can measure this is the change in India’s HNWI population during the period:

As the above figures from the Knight Frank Wealth Report indicate, the number of HNWIs in India is growing exponentially. Financial advisors, RCBI-professionals, and others who deal with HNWI clients need to adapt and get with the times.

Before the year 2007, most Indians were aspiring just to own a home. But now, they not only want a house with four walls but are looking for a fully furnished, luxurious home. Some years ago, a two-wheeler Bajaj, Fiat, or Ambassador car was the pride of a family. Now, owning two to three cars and a holiday home or farmhouse outside the city is very common.

This is how I would compare the financial aspirations of an Indian businessperson a decade ago and at present:

Before 2007: 

  • Own a two-wheeler or a car
  • Have a portfolio of investments (in India)
  • Go on holidays (in India)
  • Give their children an education in India and perhaps a Master’s degree in a foreign university
  • Own a second home (in India)
  • Get married (in India)
  • Engage in inbound business (in India)

After 2007:

  • Own a luxurious home
  • Own two cars
  • Have a portfolio of investments abroad
  • Go on international holidays
  • Give their children an education abroad, starting from the graduation of high school in India
  • Own a second home abroad
  • Get married, abroad
  • Engage in outbound business, globally

Today, many HNWIs and upper-middle-class Indians own a second home outside India, their children are studying in foreign universities, and they spend at least one vacation abroad each year, all thanks to the booming economy and the concomitant increased spending power.

Foreign destination weddings are catching on and now the new generation of power couples want to have grand, elaborate weddings in exotic locales. In their golden years, senior citizens dream of retiring outside India or living in foreign countries with their children so as to enjoy a better quality of life.

According to data received from the Reserve Bank of India, over the last six years shows the volume of remittances sent abroad by individual Indians has increased ten-fold.

This is not some haphazard newspaper survey; again, these foreign investment figures come directly from the country’s central bank, which closely monitors capital flows to and from India. It provides unique insight into how Indian HNWIs are spending their money. The overall figure for outbound investment has increased from US$440 million US in 2007-08 to US$13.5 billion in 2017-18. In the last six years alone, we’ve witnessed a ten-fold rise in the spending power of Indian HNWIs.

Note also that a large part of the items “Gifts” and “Maintenance of close relatives” is made up of remittances by parents to their children who are studying abroad, while their tuition payments are covered in “Studies Abroad”.

Looking at the data, it’s apparent that RCBI is quickly becoming part of affluent Indians’ considerations in their foreign investment strategy.  The chance to market investment migration services to more than a billion people is a twice-in-a-lifetime opportunity. The first of those opportunities has already passed us by. Don’t miss out on the second chance, for there will never, ever, be a third.

July 28, 2018

So it has finally come from the horse’s mouth!

According to the article published in Midday (Mumbai edition) on 28th July, 2018, Mehul Choksi has admitted to obtaining the citizenship of Antigua in order to expand his business.


Mr. Choksi further stated that there was no truth in the allegations levelled by the Indian government against him. He is allegedly involved in over $2-billion Punjab National Bank scam. Mr. Choksi claims he has taken Antigua citizenship last year to expand his business, as the passport of the Caribbean nation provides visa-free travel to 132 countries, local media in Antigua reported.

“I lawfully applied to be registered as a citizen of Antigua and Barbuda under the Citizenship by Investment Program. During the course of my application, I did all that was lawfully required of me to do. My application for citizenship was in due course approved,” the statement published in the newspaper said.

Choksi had taken the citizenship of Antigua in November 2017, and oath of allegiance on January 15 this year. “My application was motivated by my desire to expand my business interest in the Caribbean and to obtain visa-free travel access to 130 or so countries,” the statement said, adding that he was in the United States in January 2018 for medical treatment. “Having received treatment I am still in a state convalescence. That being the case I have decided to reside in Antigua and Barbuda,” it read.

Many HNIs and businesspersons from India have started taking interest in the Citizenship & Residency programs of Caribbean countries because of the multiple reasons. The most important among then are:

  1. Visa free travel to over 130 countries around the world.
  2. Close proximity to the U.S. markets.
  3. High quality of life
  4. Quick processing of applications and direct citizenship (passport) through investment
March 5, 2018

Very recently there were news articles online and in print media stating that Mr. Nirav Modi, a renowned diamond jewelry designer accused of defrauding state-owned Punjab National Bank of $1.8 billion, has obtained citizenship of a Caribbean country, namely, St. Kitts & Nevis.

How true are these reports?

For starters, let us understand some basics. There are five Caribbean countries which offer residency and citizenship of their countries (and a 2nd passport) to High Net Worth individuals who voluntarily make an investment in luxury real estate or donate a designated amount to the national development fund. This amount generally ranges from $200,000 to $400,000 US.

These five Caribbean countries are – Antigua & Barbuda, Dominica, Grenada, St Lucia and St Kitts and Nevis.

The primary reason why HNIs are willing to part with their fortune to obtain a passport of the aforementioned countries is because these passports grant them the liberty to travel to more than 130 countries around the globe without the hassle of obtaining a visa. This is due to the fact that many western countries have diplomatic treaties with these island nations that allow their citizens to travel visa-free.

However, just investing the required amount of money does not guarantee citizenship of these countries. Before residency and citizenship is granted or a passport is issued to the investor, a thorough and detailed background and security check is conducted by the government department in-charge of approving R&C applications. If the applicant has any criminal record or has been involved in dubious transactions or dealings in his/her home country, the application is instantly rejected.

A few days back I was speaking at two conferences on the subject of Residency & Citizenship by Investment, one in Dubai and another one in Mumbai. During this time I had the opportunity to meet some senior government officials of these island countries, including St. Kitts and Nevis.

These officials confirmed to me that Mr. Nirav Modi has not applied to their respective countries for citizenship nor has he been issued a passport of these countries. In fact, the government of St. Kitts and Nevis has issued an official press note denying the sensational claims made by the Indian media who has repeatedly quoted ‘a reliable source from the diamond industry’ as their informant.

It must be understood that is very important for these island nations to maintain the integrity and transparency of their citizenship programs as it brings valuable investment for their nations’ development.

Any country which opens its doors to potential investors and immigrants has a strict background check policy in effect ensuring that they do not harbor or give refuge to fraudsters, defaulters, terrorists and criminals from other countries. After all it is imperative that the reputation, integrity and economic future of their countries is protected.