Deutsche Bank's wealth management division has $250 billion of assets under management and is advising its clients to invest 3-5 per cent wealth in India.
The total investments by the German bank's private banking clients can soon range between $7.5-12.5 billion. Deutsche Bank has already begun the process of persuading their global clients to invest in India.
"India will account for a major chunk of our clients' investments in Asia. We are advising them to invest 3-5 per cent of their total assets in India," said the global chief investment officer of the bank's private wealth management division, Klaus Martini.
Deutsche Bank has advised its private banking clients across the globe to invest at least 10-12 per cent of their total assets in Asian markets.
Of the total private banking assets under management with Deutsche Bank, the amount invested in Indian equity is only about $200 million. Martini, however, considers Indian equity market "overheated". "A huge quantum of FII money is waiting to flow into India the moment the equity market witnesses a correction," he said.
In India, Deutsche Bank is also considering to route investments in gold, real estate, private equity and commodities. The bank is also considering introduction of structured products in India, including hedged portfolio management services, subject to regulatory approvals.
Deutsche Bank is bullish on engineering, consultancy and pharmaceutical industries in India. On the foreign exchange front, the bank expects the rupee to depreciate to Rs 47.70 per dollar by the end of 2006.
In its debt market outlook for January-March 2006, the bank foresees short-term factors, mainly the state of market liquidity and the progress in the government borrowing programme in the second half of 2006, to dominate the bond markets.
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