Financials News

Offshore India funds, ETFs see $2 billion inflows in Jan-Mar qtr

Offshore India funds, ETFs see $2 billion inflows in Jan-Mar qtr

New Delhi: India-focused offshore funds and exchange-traded funds (ETFs) registered net inflow of USD 2 billion in the January-March quarter as against a huge outflow of USD 1.3 billion in the year-ago period. An offshore India fund is one that is not domiciled in India but invests primarily in Indian markets.

According to a report by mutual fund tracker Morningstar, India-focused offshore funds saw an inflow of USD 1.46 billion, while that of ETFs witnessed an infusion of USD 509 million, taking the total to USD 2 billion.

During the October-December quarter of 2016, the category had seen a net inflow of USD 449 million. “On positive side, more money is flowing into India focused funds compared to India focused ETFs which signify long-term money.

Flow into ETF is considered as short-term money,” said Himanshu Srivastava Senior Analyst Manager Research at Morningstar Investment Advisor India said.

In comparison, Foreign Portfolio Investors (FPIs) registered a robust net inflow of USD 6 billion during the quarter under review.

PTI