Among the economic policies implemented by the Russian government to encourage foreign investment include the creation of the Russian Direct Investment Fund (RDIF).

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This certified "terror-free" mutual fund is also reportedly available for direct investment through E-Trade, Ameritrade, Schwab and many other investment firms.

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India is financing its current-account deficit with volatile foreign fund inflows into the capital markets rather than foreign direct investment, which is a matter of concern, Mr. Subbarao said at an event in Mumbai.

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