Investment in India?
ZD
Is it better to invest in the Indian market with a loan from a bank in Dubai or a loan from a bank back in India? and which bank?
Is it better to invest in the Indian market with a loan from a bank in Dubai or a loan from a bank back in India? and which bank?
In general, it is never wise to invest into the markets with borowed money -unless of course you have a fool proof method of getting consistently high returns for the duration of the borrowing. Normally people who are sophisticated enough to have evolved such a strategy would not be asking this question. This in not said in any derogatory sense -but in a cautionary way.
Having said that then the answer to your question will depend on the rates at which you are borrowing in Duabi and in India, your expectation on how you expect the Dirham/Rupee rate to move.
If Ri=Cost of Borrowing in India
Rd=Cost of Borrowing in Dubai +forecasted exchange rate fluctation of Dirham versus INR
Then if the total cost of borrowng in India is less than the total cost of borrowing in Dubai (RiRd).
You chose the bank which can give you the lowest rate in Ri or Rd.
I don’t like the idea of borrowing money to invest. If the market has a historical return of 8%, and you have to pay 7% interest, you’re not making anything. Save your money and then buy these great Indian stocks that trade as ADRs in the US markets:
This is from – this is a free site that lets you create a portfolio of stocks with $100,000 in “play” money. Each day the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as well as share your own investing ideas. There is also a charting feature , so you can see how your portfolio performs compared to the S&P 500.
Here are this month’s best traders:
Good luck.
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