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Offshore India funds, ETFs pump in $6 bn in Jan-Sep

India-focussed offshore funds and ETFs are a subset of the overall foreign portfolio investor (FPI) flows

Press Trust of India  |  New Delhi 

Offshore India funds, ETFs pump in $6 bn in Jan-Sep

Optimistic of the country's long-term growth prospects, India-focussed and exchange-traded (ETFs) have pumped in nearly $6 billion in the first nine months of the year.

In contrast, these had pulled out $1.73 billion in January-September of 2016, according to a Morningstar report.

The offshore fund -- not domiciled in -- receives flow from overseas and in turn, invests the money in Indian

India-focussed and are a subset of the overall (FPI) flows.

According to the report, India-focused invested $4.96 billion during January-September of the year while those of witnessed an infusion of $747 million, taking the total to $5.7 billion.

On a positive note, the money largely came into offshore funds which signify long-term money as against offshore ETF, where the money is largely short-term.

"I still feel that the long-term story is intact and solid and we will continue to get long-term money through the fund route," said Himanshu Srivastava, Senior Analyst Manager Research at Morningstar

During the July-September quarter, offshore funds and together witnessed an inflow of $935 million, which was lower than $2.77 billion seen in the preceding three months.

"One of the major reasons which is working against emerging is the increased tension on the Korean peninsula due to the stand-off between the and North Korea," Srivastava said.

Besides, India is more impacted largely due to the delay in the pick-up of This, coupled with expensive valuations, makes it a tricky situation, he added.

First Published: Mon, October 30 2017. 13:44 IST
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