By Venkata Vemuri, London,
July 9, 2008 (IANS)
has approved the proposal of Indian tycoon Anil
Ambani to open a London office of his fund managing
company, Reliance Assets Management (RAM), to
attract European investors for the first time.
RAM will be represented in Britain by its offshore
fund, Emergent India. The minimum investment in
the Emergent India fund is $100,000. The
company, said to be among India's largest fund
managers, has won approval from the Financial
Services Authority to open the London office with
the objective of winning assets from wealthy and
institutional investors in Britain and Switzerland.
This was announced in Wednesday's
Wealth-Bulletin, a Dow Jones company and online
analysis service for the global wealth management
Its manager, Sunil Singhania,
said: "The timing for marketing may not be
right, but from an investment perspective it is
just right. From these levels there is a great
opportunity for investors, although there will
also be some short-term dips." He is at present
looking at capital goods and construction companies.
With valuations in these sectors down by more
than half, its stocks are starting to look attractive
again. He also likes financial services companies
on the ground that India is under-banked, although
he expects the next six months to be tough for
the local economy.
The main worry is the inflation
rate in India which is now over 11%. On top of
it, the looming general elections could also weigh
on stocks. "The market might react negatively
to the political rhetoric," Singhania said.
Though he did not confirm it, domestic uncertainty
has apparently helped persuade the Anil Ambani
group to look overseas. It launched a $1.4 billion
natural resources fund in March that is allowed
to have 35% of its portfolio invested outside
India. A representative office in Dubai targets
non-resident Indians in the Middle East.