Why some global ETFs in India are wildly overpriced and the risks investors don’t realise they’re taking
Indian investors face a challenge accessing global stocks. Regulatory limits on mutual funds have dried up usual channels. Investors are now flocking to overseas Exchange Traded Funds traded locally. However, these ETFs are trading at significant premiums to their actual value. This overpayment risks capital loss even if underlying assets perform well. Experts advise caution against this inflated pricing.
Indian investors face a challenge accessing global stocks. Regulatory limits on mutual funds have dried up usual channels. Investors are now flocking to overseas Exchange Traded Funds traded locally. However, these ETFs are trading at significant premiums to their actual value. This overpayment risks capital loss even if underlying assets perform well. Experts advise caution against this inflated pricing.
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