As for retail money, which the government is targeting, its hard to see foreign individuals wanting a direct exposure to the Indian market just yet; one would think they would prefer to avoid cumbersome proceduresclearing the KYC, opening a demat account, placing ordersand instead park their savings with a reputed fund overseas, which, in turn, could invest in India either directly or through local mutual funds. That might just be a simpler way to go about it. Indeed, it could be a while before Indian MFs build up a sizeable foreign retail clientele even if they teamed up with distributors in those markets rather than setting up marketing and sales offices on their own. They could, however, tap offshore customers of foreign banks operating in India, in return for a fee. Nonetheless, the task at hand is not easy; products would need to be registered with local regulators before investors feel comfortable parting with their savings and, of course, fund managers would need to have a good enough track record to convince investors that its worth all the trouble. So perhaps MFs would want to pick the low-hanging fruitsmaller institutional investorsto begin with. It may be just easier to persuade local retail investors to start buying MF schemes again.