Share of sovereign funds in FPI at its highest for FY19, but holdings fall

The overall FPI equity holdings have declined by Rs 46,000 crore in January alone

The share of sovereign wealth funds (SWFs), as a proportion of total foreign portfolio investments in Indian equities, is at its highest for the current fiscal at 5.74 per cent. However, the value of their investment was Rs 1.54 trillion as of January; lower than the Rs 1.56 trillion in December. It is also lower than the Rs 1.7 trillion as of August. 

The reason for the higher share, despite declining absolute holdings, is the overall decrease in foreign investor holdings. SWFs are considered to be more stable than other sources of foreign investment such as hedge funds. It typically