India-focused offshore funds, ETFs see $4.6 bn inflow in FY18 so far

India-focused offshore funds and exchange traded funds (ETFs) have received net assets worth $4.6 billion in this financial year (FY) so far, a report said.

The category had witnessed a net outflow of assets worth $2.3 billion in the year-ago period, a report by Morningstar said in Mumbai on Wednesday.

Through the April-June quarter, the category garnered net assets worth $2.6 billion, higher than the net inflow of $2.0 billion they had received in the previous quarter.

India-focused offshore funds witnessed higher net inflows than India-focused offshore ETFs during the quarter.

Of the total quarterly net inflow of $2.6 billion, India-focussed offshore funds registered net inflow of about $2.1 billion, whereas India-focussed offshore ETFs witnessed net inflows of $0.5 billion.

Assets of India-focussed offshore equity funds and ETFs increased during the June quarter to $55.2 billion from $50.1 billion in the March quarter.

S&P BSE Sensex Index gained 4.4 per cent in the quarter from an appreciation of 11.2 per cent in the previous quarter.

India-focused offshore funds and ETFs category registered a gain of 4 per cent in the reporting period, thus outperforming the USD-denominated MSCI India USD Index, which grew 2.9 per cent. The category surged by 19.5 per cent in the preceding quarter, the report said.

Assets of other regionally diversified equity funds and ETFs increased to $5.67 trillion in June from $5.34 trillion in the preceding quarter.

The value of investment, the report said, into country's equities in foreign funds also shot up to around $160.7 billion from $151.9 billion in the preceding quarter.

While global funds invested around $2.8 billion in Indian equities, emerging-markets funds and Asia/Asia-Pacific funds invested around $0.7 billion and $0.8 billion, respectively.