DBS Chola Mutual Fund plans to launch a scheme to invest exclusively in overseas assets to allow investors to spread their risks better and reduce country risk and this fund provides a unique opportunity to Indian investors. While Indian regulators allow investment in overseas markets through mutual funds, they do not allow individuals to invest in overseas stocks directly. With an exception two funds (Principal Global Opportunities and Templeton India Equity Income), there are no other funds from India that invest abroad.
DBS Chola Mutual Fund has a 37 per cent staje from Singapore based DBS and uses the existing models already created for the Asian region by the foreign partner to model the new program.
According to Government tax filing data, the number of millionaires in India grew by 67.6 per cent to nearly 92,000 people from 2001-05. A study by American Express predicts that India will have has 1.1 million people with liquid monies of USD 100,000 by 2009.