The DIY route to international investing

A couple of days ago we looked at why you should diversify overseas. International investing is something that's often dismissed by retail investors, even though there is good reason to invest in global markets. For investors who do not have the time and skill to directly invest in stocks, mutual funds are the way to go. But if you are fascinated with researching companies and are a voracious reader, then you may like to directly invest in stocks overseas without taking the help of a mutual fund. To make a start on direct overseas equity investing though, here are some basics you need to know. Foreign exchange transactions undertaken by Indians are subject to FEMA (Foreign Exchange Management Act) and RBI regulations. RBI's Liberalised Remittance Rules (LRS) determine how much money Indians can remit abroad for investment purposes in any given year. Presently, the LRS cap stands at $2,50,000 a year, offering you quite a generous limit on your overseas exposure. Opening an account To make yo