We could soon see an explosion in domestic institutional investments with the finance ministry permitting investment of pension fund assets into equity markets. This will not only put the pension fund into balance but also help in the explosion of the already high equity markets in India. The rise of pension fund deficits and regulatory change has finally brought new thinking on investment strategy for the public pension schemes.
The centrally managed funds carry assets reaching nearly 4% of the GDP amounting $30bn. The diversification in the investment strategy into equities and corporate bonds will be a very important development and a move for the funds towards liability driven performance targeting.
More on this in the coming blogs
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About Me
- Parshu
- I am an investment banker based in the far east, Hong Kong. My education and work has taken me to numerous countries around the world, and that imbibes me a very strong passion for traveling, exploring new places and cultures. I am curious about history and how different societies have evolved over time. Two other interests of mine are hiking, and I have just put up a new blog related to this, and also an activity that was introduced to me as a child, but have seriously got into it just recently - yoga.
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