International ETFs trade at over 25% premium

CATEGORY GENERATES NEARLY 26% RETURNS YEAR TO DATE

- ANANYA GROVER

WITH THE OVERSEAS investment ceilings from the Secutritiesand Exchange Board of India and the RBI at $7 billion for the mutual fund industry and $1 billion per asset management company in place, investors will find it difficult to put money into these schemes, even in the secondary market,as premiums have shot up.Currently,international equity exchange traded funds (ETFs) are trading ata significant premium of 12-27% over their net asset values.

According to data from Value Research, the international equity category has generated nearly 26% returns year to date, thethird mostaftergoldandsilver schemes.