Do I need a PAN Number to invest in India’s Real Estate, Stock Market & Mutual Funds?

Yes these days it is necessary that you need a PAN card if you want to invest in India’s stock market, mutual funds, property, insurance, bank account, bonds or anything else. All Non resident Indians and foreign citizens need a pan card number these days to explore investment opportunities in India.

Everyone is rushing to invest in India these days. Wondering why that is so? Well, simply put, the economy of the country has never been better and this is attracting investors like bees to honey. So if you are looking to make a good profit, then it is a pretty great idea to invest in India.

As soon as the Congress party came to power – with a landslide victory no less- the Bombay Stock Exchange rose to a whopping twenty five percent! And yes, it has continued its rise ever since. And you my friend, could also continue to rise financially with it!

Companies

The best way to invest is by investing in Indian Companies. There are several large companies in India which are listed on stock exchanges in the US. So you can buy shares of these companies from there and choose to invest. One such company is Infosys Technologies or INFY as it is known. It is one of the most popular companies in India and is largely traded.

There are several other companies too which you can consider investing in. For example, there is HDFC bank which has eleven million customers and seven hundred and sixty branches worldwide. TATA Motors which manufactures both passenger and cargo vehicles is also largely traded. In fact, they have recently acquired Jaguar.

Dr. Reddy’s Laboratories is another company which is worth investing in. they manufacture bulk drugs and have been successfully conducting research in areas such as cancer. They are also working in collaboration with the National Cancer Institute in the United States.

Reliance Industries Ltd. Is India’s largest private enterprise and is in fact a Fortune 500 company. Their businesses extend to pretty much all sectors from oil and gas to FMCG to clothing to pretty much everything. Forty percent of Indian Investors own shares in this company and that itself speaks volumes! You can even get shares of Reliance at the Luxembourg exchange.

ETFs

ETFs offer another way to invest in India. They offer a low risk way of investing in the economy and also help you capture the profit that is being generated because of the flourishing Indian economy. ETFs are nothing but exchange traded funds in case you were wondering what they are. You can also choose to go in for ETNs or exchange traded notes. Some ways to invest in ETFs are through:

WisdonTree India Earnings (EPI)

iPath MSCI India Index (IIP)

Powershares India ETF (PIN)

Closed End Funds

You can also choose to buy mutual funds which are close ended. This is basically another way of investing in the large companies in India. Take India Fund Inc (IFN) basically lets you invest in stocks of a wide array of Indian companies and across every strata of the Industry as well. Another popular close ended mutual fund is Morgan Stanley India Investment Fund (IIF). In fact there are many times where they even invest in currency and other options.

If you want to purchase shares of specific large companies which are not included in the mix of shares in these funds, then you need to purchase them directly off the market from the Bombay Stock Exchange. But keep in mind that in order to do this, you need to consider the differences in foreign currency. It is recommended that you invest through mutual funds to avoid losses.

There are many ways to invest in India if you are willing to. Just keep your eyes and ears open. I have it on good authority that India will definitely live up to your expectations!

Related Posts