Globalise seeks to tap investors' interest in global equities

To tap the emerging interest to invest in global equities, funds and other asset classes, a new brokerage and wealth management firm focused on global equity and fund investments through the liberalised remittance scheme LRS route is being launched on Wednesday.


PTI | Mumbai | Updated: 20-01-2021 12:04 IST | Created: 19-01-2021 22:42 IST
Globalise seeks to tap investors' interest in global equities
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To tap the emerging interest to invest in global equities, funds and other asset classes, a new brokerage and wealth management firm focused on global equity and fund investments through the liberalised remittance scheme (LRS) route is being launched on Wednesday. The new firm Globalise is founded by a group of ex-bankers and wealth/investment managers. It claims to focus on a guided global investment model that makes investing in global bluechips and other asset classes accessible for domestic investors. It claims to offer as many as 4,000 international stocks and funds to choose from. Vikas Nanda, one of the founders and chairman of Globalise and a Deutsche Bank veteran, told PTI that they expect to have assets under management (AUM) of over USD 2 billion by 2024, of which at least USD 400 million would be in US stocks such as Apple, Tesla, Google and Amazon. All an interested party needs to do is open a Demat account through them in the US. While any capital gains will not be taxed in the US but only in India, the investor will have to pay a flat 25 per cent in taxes to the US government on any dividend payout, its chief executive Viraj Nanda said. According to data from the Reserve Bank, since it increased the cap on the liberalised remittance scheme (LRS) to USD 2,50,000 per individual per annum without prior permission from the central bank in May 2014, close to USD 19 billion had flown out of the country in FY20. In FY14, this was under USD 1 billion. Outward remittances under the LRS route touched USD 18.751 billion in FY20. Of this, deposits into US banks constituted USD 623.37 million, travel constituted the largest at USD 6,954.20 million, followed by studies abroad at USD 4,989.04 million, among others. Viraj Nanda said investing in global stock and funds help an investor minimise the risks and diversify their asset class portfolio as they handhold the investors with better investment advise. Other founders include Sandeep Kapoor, an ex-Sequoia executive, and Vineet Nanda of Sift Capital. The company will have its India office in New Delhi, Vikas Nanda said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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