International Investments Essay Example | Topics and Well Written Essays - 500 words

International Investments - Essay Example ne thing that makes Indian stock market as a good long term investment according to the article â€Å"Advantages for NRIS investing in the Indian Market† 2011, is that most of its stocks are correctly valued, returns of investment are excellent and its stock market is well regulated. In my observation, based on financial reports, India has a booming economy and is one of the emerging economies next to China. As such, confidence of investors is rising such that there are continuing interests from foreign multinationals on Indian companies. As compared to United States that is experiencing a slow economic growth; investors are losing interest of holding US dollars and therefore lessen interest in US investment. These investors now look for new investments in emerging countries like China, India and Brazil. India has advantage on this as the government continuously works on its deregulation and free market principles to attract investments. Because of the investors’ intere sts, the economy of India is expected to improve further and reach a high GDP figure of 10%, and economic growth will continue on years to come. Economic activities along this line are take-over, acquisitions and mergers and are spreading on iron and steel, spirits, manufacturing, auto parts, not just IT, and equity. Investment in the Indian debt securities, I believe, is a good investment because according to BSE (2011), the Indian debt market is one of the largest in Asia. Securities are issued by the government (central and state), public sector, other government bodies, financial institutions, banks and corporations. As such, the fixed income securities become one of the most attractive investment opportunities since it provides safety of investments, adequate liquidity, and flexibility in structuring a portfolio, easier monitoring, long term reliability and assured returns (India Debt Market, 2010). Fixed income securities may either be interest-bearing bonds, varied type of debt