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Offshore India funds, ETFs mop up $573 mn in October

India-focussed offshore funds and Exchange Traded Funds (ETFs) are a subset of the overall FPI flows

Press Trust of India  |  New Delhi 

offshore funds, ETFs, cash inflow, Indian markets, investments
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received a net inflow of $573 million in October, taking the total to nearly $5 billion in 2017, indicating that the country remains an attractive destination for

In comparison, these funds had registered an infusion of $256 million in October last year, according to a report by Morningstar.

- not domiciled in India - receives flow from and in turn, invests the money in

and (ETFs) are a subset of the overall foreign portfolio investor (FPI) flows.

According to the report, have seen an investment of $573 million last month, while those of witnessed a pullout of $31 million, translating into a total of $542 million.

Flows into are generally considered to be long-term in nature, whereas flows into indicate predominantly short-term money.

"The net inflow into compared with the net outflow from offshore suggest that, despite concerns, foreign investors continue to view India as a long-term investment destination and their confidence on and the country's economic prospects has not withered.

"It's also apparent that it is mostly the short-term money that is moving out of the Indian markets," Morningstar India Senior Analyst Manager Research Himanshu Srivastava said.

First Published: Fri, November 17 2017. 15:54 IST