Helping you to achieve your financial goals

Transcription

1 Investment guide Not for distribution in Hong Kong or Singapore. Helping you to achieve your financial goals

2 Our research 1 suggests that most Indian expatriates have three key financial goals; the purchase of a property, retirement planning and paying for their children s education. Whatever your own financial planning needs both during your time as an expatriate and also should you return to live in India we believe that you need to be committed to saving for the long term and also carefully consider how you invest your money. We have developed links to a range of funds that will appeal specifically to an Indian expatriate that wants to invest in their home market and economy. We have agreements with a number of major global and key Indian asset management companies that offer our customers the opportunity to invest in Indian equities, bonds or a mixture of both. These funds should not be looked at in isolation as they are just part of a broad range of funds from a selection of the world s leading fund managers. Our range of funds covers not only India, but all of the major markets around the world. If you want to find out about the full range of funds that we offer please look at the funds pages on our website, If you are still unsure which funds or which portfolio of funds would best suit your needs please speak with your financial adviser. 1 Source: Friends Provident International Friends Provident International Indian investment guide

3 The fund range Equity funds HDFC (EIFF) Equity Fund The objective is to achieve long term capital appreciation by investments in units of the scheme HDFC Equity Fund that has been issued by HDFC Asset Management Company in India. The primary objective of HDFC Equity Fund (the Scheme) is to generate long-term capital appreciation. The Scheme maintains a focused portfolio (of Indian equities) predominantly of large cap stocks, though there is controlled exposure to mid caps. The Scheme however always remains diversified across sectors that are weakly co-related with each other to reduce risk. Please note, the objective supplied is abbreviated by FPI. For full details please refer to the underlying fund prospectus which is available on request. Here are seven funds available via our fund range that invest in India: five equity-based funds, a fund that invests specifically* in bonds, and also a mixed fund that invests in both equities and bonds. HSBC* Indian Equity The fund aims to provide long-term total return by investing in a portfolio of Indian equities. The fund invests, in normal market conditions, a minimum of 90% of its net assets in equities and equity equivalent securities of companies which are domiciled in, based in, or carry out the larger part of their business activities in, India. The fund normally invests across a range of market capitalisations and does not track a benchmark. The fund may use financial derivative instruments for hedging and cash flow management. However, the fund will not use financial derivative instruments extensively for investment purposes. Please note: the objective supplied is abbreviated by FPI. For full details please refer to the underlying fund prospectus which is available on request. Aberdeen* Global Indian Equity Fund The Fund s investment objective is long-term total return to be achieved by investlng at least two-thirds of the Fund s assets in equities and equityrelated securities of companies with their registered office in India: and/or, of companies which have the preponderance of their businessactivities in India; and/or, of holding companies that have the preponderance of their assets in companies with their registered office in India. Reliance Emergent India Fund The investment objective of the Reliance Emergent India Fund Class B shares is to generate long-term capital growth by investing through the Scheme Reliance Emergent India Fund principally in companies established in or operating in India. The benchmark index for the fund is the MSCI India Index. J.P.Morgan* Indian Equity The Fund aims to provide long-term capital growth through a portfolio consisting primarily of securities linked to the Indian economy. These include, but are not restricted to, securities traded on the stockmarkets of India and the rest of the sub-continent. 3

4 The fund range (Continued) Mixed funds HDFC (EIFF) * Balanced Advantage Fund The objective is to achieve long term capital appreciation by investments in units of the scheme HDFC Prudence Fund that has been issued by HDFC Asset Management Company in India. The primary objective of HDFC Prudence Fund (the Scheme) is to provide periodic returns and capital appreciation over a long period of time, from a judicious mix of equity and debt investments, with the aim to prevent/ minimize any capital erosion. Please note, the objective supplied is abbreviated by FPL. For full details please refer to the underlying fund prospectus which is available on request. Bond funds Invesco India Bond Fund The objective of the Fund is to generate income and long-term capital appreciation. The Fund will invesf primarily in debt instruments issued and/or guaranteed by the Indian government or by Indian companies, and Indian money-market instruments. For the full objectives and investment policy, please refer to the underlying fund prospectus, which is available on request. The HDFC funds cannot be directly accessed outside India, so our funds will invest in what are known as feeder funds. These feeder funds, the Emergent India Focus Funds, invest in the underlying HDFC funds. For more information on the funds, please refer to the fund factsheets on our website. Funds that invest in individual countries may be more volatile and carry more risk than those spread across several countries. Please note that securities held within a fund may not be denominated in the currency of that fund and, as a result, fund prices may rise and fall purely on account of exchange-rate fluctuations. You may get back less than you have paid in. India s strong economy continues to lead global growth India s economy is picking up and growth prospects look bright partly thanks to the implementation of recent policies, such as the nationwide goods and services tax. As one of the world s fastest-growing economies accounting for about 15 percent of global growth India s economy has helped to lift millions out of poverty. 4 Source: IMF COUNTRY FOCUS August 8, 2018, Articles/2018/08/07/NA India-Strong-Economy-Continues-to-Lead- Global-Growth 4

5 Successful investing Regardless of where you are living currently, there are some key points to consider when thinking about investing. Don t try to time the market It s very difficult to predict financial market movements and to get the exact timing of when to invest or disinvest just right. This is because financial markets rise and fall in unanticipated spurts, making it easy to mistime and potentially lose out on any future gains. It makes sense that investors who are patient and who invest for the long term are much better placed to participate in the financial markets best performing days. Missing just a few key days can have a dramatic effect on the value of your investment portfolio. Maintaining a diversified investment portfolio with the help of a financial adviser is an excellent way to shelter your portfolio from periods of volatility. This is likely to be a much more effective approach than trying to predict the direction of the financial markets on any one day. Systematic investing Investing a fixed amount on a regular basis or starting a systematic investment plan (SIP) can be an effective way of helping you to achieve your financial goals, and it may also reduce the negative impact that volatility can have on your investment portfolio. Whenever you invest, you buy units in a fund. A unit is a stake in a fund. The number of units you buy depends on the price of the units at the time of purchase. So, for a fixed amount, the lower the unit price for the fund, the more units will be purchased. When the unit price for the fund rises, fewer units will be purchased. Investing on a regular basis or starting an SIP means that you are able to take advantage of what is known as unit cost averaging. The table opposite, where USD 1,000 is invested each month into a hypothetical fund, demonstrates this approach in practice. Investment Month Amount invested (USD) Value at month 6 = USD 6, Fund unit price (USD) (6,875 units x unit price of USD 1.00) Despite the unit price being the same at the end of the period as at the beginning, the investment is showing a profit of USD due to unit cost averaging. Review your portfolio regularly Units acquired Month 1 1, , Month 2 1, , Month 3 1, , Month 4 1, , Month 5 1, Month 6 1, , Total 6, , Whichever of our funds you decide to invest in, it is very important that, with the help of a financial adviser, you review your investment portfolio on a regular basis. This is to ensure that it continues to reflect your attitude to risk and remains on track to meet your financial goals. 5 Friends Provident International Indian investment guide

6 Visit our website to learn more about our range of flexible savings, investment and protection plans. Speak to your financial adviser today to see how we could help you secure your investment goals. About Friends Provident International We are a leading financial services provider, with a reputation of trust, commitment and integrity, offering financial solutions to customers throughout their lives. Friends Provident International has over 35 years of international experience and our heritage dates back over 180 years. This document is for information only. It does not constitute advice or an offer to provide any product or service by Friends Provident International. Please seek professional advice, taking into account your personal circumstances, before making investment decisions. We cannot accept liability for loss of any kind incurred as a result of reliance on the information or opinions provided in this document. Friends Provident International Limited: Registered and Head Office: Royal Court, Castletown, Isle of Man, British Isles, IM9 1RA. Telephone: +44 (0) Fax: +44 (0) Website: Isle of Man incorporated company number 11494C. Authorised and regulated by the Isle of Man Financial Services Authority. Provider of life assurance and investment products. Authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. Singapore branch: 4 Shenton Way, #11-04/06 SGX Centre 2, Singapore Telephone: Fax: Website: Registered in Singapore No. T06FC6835J. Licensed by the Monetary Authority of Singapore to conduct life insurance business in Singapore. Member of the Life Insurance Association of Singapore. Member of the Singapore Financial Dispute Resolution Scheme. Hong Kong branch: 803, 8/F., One Kowloon, No.1 Wang Yuen Street, Kowloon Bay, Hong Kong. Telephone: Fax: Website: Authorised by the Insurance Authority of Hong Kong to conduct long-term insurance business in Hong Kong. Dubai branch: PO Box , Emaar Square, Building 6, Floor 5, Dubai, United Arab Emirates. Telephone: Fax: Website: Registered in the United Arab Emirates with the UAE Insurance Authority as an insurance company. Registration date, 18 April 2007 (Registration No. 76). Registered with the Ministry of Economy as a foreign company to conduct life assurance and funds accumulation operations (Registration No. 2013). Friends Provident International is a registered trademark and trading name of Friends Provident International Limited. India_Invest (12782)