HNIs, family offices chase returns abroad as Indian markets underperform

With domestic equities lagging global markets, high-networth individuals (HNIs) and family offices are increasingly diversifying into offshore assets through portfolio management services (PMS) and alternative investment funds (AIFs) housed in Gujarat International Finance Tec-City (GIFT City). 

The shift is evident from a sharp rise in AIF allocations overseas. 

As of June, investments into foreign jurisdictions stood at $1.43 billion, up nearly 70 per cent from $842 million at the end of March. Meanwhile, PMS assets operating out of GIFT City climbed 23 per cent to $1.46 billion during the April–June quarter, up from $1.18 billion at the end of March