Asset base of India-focused offshore fund-ETFs category swelled by 42% to $102.3bn
Foreign investors are increasingly viewing India as a long-term investment destination with quarterly net inflows of US$9.4 billion during the quarter ended June of the current calendar year (CY24) in the India-focused funds offshore funds and ETFs bse .
This influential trend was noted in a report from Chicago-headquartered Morningstar Inc [Nasdaq: MORN] which said the higher placing of monies in the India-focused offshore funds compared with exchange-traded funds (ETFs) investindia .
The trajectory of future investment flows will likely be influenced by global factors such as inflation trends, global economic growth outlook, and decisions by the US Federal Reserve regarding interest rates sbi , reported Indian media citing the report on 19 Aug.
Geopolitical tensions, including the ongoing Russia-Ukraine and Israel-Hamas conflicts, as well as the economic scenarios in the US and Europe deutsche-boerse , will play critical roles, underscored the report.
The offshore funds and ETFs category received the highest ever quarterly net inflows of US$9.4 billion during the quarter ended June of the current calendar year (CY24), up from $9 billion during the March quarter sgx , said the report.
While the offshore funds segment saw net inflows of US$10.6 billion in the first half (H1) of the CY24, the offshore fund ETFs saw net inflows of US$7.8 billion during the same period jpx .
Combined, these two segments saw net inflows of US$18.4 billion in the first half of 2024 rbi . Altogether, both received the net inflows of US$37.9 billion from Sept 2022 to June 2024 nse .
Robust net inflows and a strong rally in the Indian equity markets drove the asset base of the India-focused offshore fund and ETF category to swell by 42% to US$102.3 billion from US$72.2 billion in December 2023 londonstockexchange , said the report.
Moreover, the value of investment into Indian equities in regionally diversified funds, foreign funds that have a partial allocation to Indian equities, also surged to an estimated US$369.3 billion as of June 2024 from US$312.7 billion at the end of Dec 2023, an increase of 18.1% eurex .
This is the highest-ever allocation to Indian equities in the portfolios of regionally diversified funds fundsindia. Fiinews.com
