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Offshore India funds, ETFs get net inflow of $230-mn in Mar qtr

Press Trust of India  |  New Delhi 

Fund inflows into India-focused offshore funds and (ETFs) declined sharply to USD 230 million in January-March this year against net infusion of USD 1.03 billion in the previous quarter, says a Morningstar report.

Offshore fund -- not domiciled in -- receives flow from overseas investors and in turn, invests the in Indian markets. India-focussed offshore funds as well as are a subset of the overall foreign portfolio investor (FPI) flows.

Investment in India-focused offshore funds reached USD 262 million in the January-March quarter, while investors pulled out USD 32 million from ETFs, translating into net inflow of USD 230 million, according to the report.

Flows into India-focussed offshore funds are generally considered to be long-term in nature, whereas flows into India- focussed offshore indicate predominantly short-term

"The net inflows into India-focussed offshore funds compared with net outflows from India-focussed offshore suggests that, despite concerns and some hiccups along the way, foreign investors by and large continue to view as a long-term investment destination and their confidence on Indian markets and the country's economic prospects has not withered," Himanshu Srivastava, at said.

According to the report, assets of India-focussed offshore funds and ETFs rose to USD 70 billion during the quarter ended March 31, 2018, from USD 65 billion registered in the previous quarter.

During the March quarter, foreign portfolio investors (FPIs) pumped in USD 2.2 billion in the Indian equity market on hopes of better corporate earnings, promising economic data and buoyant global markets.

The net inflow by FPIs stood at USD 2.6 billion during October-December quarter.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 17 2018. 17:50 IST
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