Whalesbook
Investors face significant hidden costs as India-listed international ETFs trade at premiums of 10-24% above their Net Asset Value (NAV). This is driven by SEBI's $1 billion cap on overseas ETF investments, which has frozen new unit creation while demand for global exposure surges due to recent outperformance. Experts warn that this premium, coupled with currency risks, eliminates practical arbitrage opportunities and can lead to substantial losses, making traditional mutual funds or direct foreign investment routes more efficient.