CommSec gives structured access to Indian economy

CommSec’s launch of two new products, the Odyssey Series 1 and the Capital Series 12, will provide investors with specific, structured access to the booming Indian economy.

The fact that these products allow isolated access to India, without also exposing the investor to the other emerging economies of Brazil, Russia and China, is highlighted as a major benefit.

“Investors seeking opportunities to capitalise on the burgeoning Indian economy usually need to look at BRIC investments,” Matt Comyn, general manager, CommSec, said.

“The appeal . . . is the ability to access the Indian share market without the complications of direct investment on the Indian National Stock Exchange, or the in-depth knowledge and resources required to pick stocks directly in that market.”

Providing an analysis of the Indian economic situation, CommSec chief equities economist Craig James pointed to the recent Indian federal budget, which flagged even greater focus on economic growth in the coming year.

He said that over the past five years, the Indian economy has been growing beyond its long-term average, and he expects this to continue.

“This year, we could see the Indian economy grow by over 9 per cent,” James said, with this growth “driven very much by the internal economy, unlike other emerging markets”.

Both the Odyssey Series 1 and the Capital Series 12 are intended as complementary assets to provide greater diversification within investment portfolios, aimed at private retail investors along with corporations and superannuation funds.

“[They] add complexity if investors are looking for more,” said Craig Keary, general manager of Colonial Geared Investments, with financial planners given the option of incorporating gearing strategies, as they were with previous Capital Series investments.

The investments are made in Australian dollars, to avoid foreign exchange complications, and upon maturity, provide investors with BHP shares.

Julie McKay, general manager, product and research services — derivative products, said that while some investors may define them as alternative assets, she describes them as “equity-style assets . . . intended for people who have a positive view of India”.