It was again net outflows for India-focused offshore funds and exchange-traded funds (ETFs) in the September quarter. This is the 14th quarter in a row than these funds saw net outflows, says a report.
Net outflows for the three months ended September were to the tune of $95 million, much lower than $1.5 billion in the previous quarter, the Business Standard reported, quoting the Morningstar’s latest Offshore Fund Spy report.
The asset base of these funds rose 11% to $51.6 billion from the $46.3 billion in the previous quarter, thanks to the surge in the stock market.
According to the report, India-focused offshore funds and ETFs returned 10.6% for the period under review, underperforming the MSCI India USD Index, which returned 12.7%. During the period, the benchmark index, S&P BSE Sensex, rose 12.7%, while the BSE mid-cap jumped 12.1%.
Indian equities attracted an estimated $303 billion from other regionally diversified offshore funds and ETFs in the September quarter, 9% higher than $278 billion in the previous quarter.
According to the report, Fidelity India Focus A-USD ($169 million), Goldman Sachs India Equity I Inc USD ($163 million), Ashoka India Opportunities A USD Accumulation ($137 million), UTI India Dynamic Equity USD Instl ($74 million), and Stewart Investors Indian Subcontinent Sustainability A GBP ($71 million) figured among funds that got the highest net inflows during the quarter.
The assets of the 10 largest India-focused offshore funds and ETFs continued to swell, touching $22.3 billion at the end of September.
Foreign investors would be keen to see sustainable signs of economic growth before betting on India’s long-term growth story, Himanshu Srivastava, associate director, manager research, Morningstar Investment Adviser India, is quoted as saying by the Business Standard.
Investments from offshore MFs, offshore insurance companies, hedge funds and sovereign wealth funds are considered foreign institutional investments.
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