Offshore India funds register $573 million inflows in Oct
17 Nov 2017 10:37 PM IST
New Delhi: India-focussed offshore funds received a net inflow of $573 million in October, taking the total to nearly $5 billion in 2017, indicating that the country remains an attractive destination for overseas investors. In comparison, these funds had registered an infusion of $256 million in October last year, according to a report by Morningstar. Offshore India fund - not domiciled in India - receives flow from overseas investors and in turn, invests the money in Indian markets.
India-focussed offshore funds and Exchange Traded Funds (ETFs) are a subset of the overall foreign portfolio investor (FPI) flows. According to the report, India-focussed offshore funds have seen an investment of $573 million last month, while those of ETFs witnessed a pullout of $31 million, translating into a total of $542 million.
Flows into offshore funds are generally considered to be long-term in nature, whereas flows into ETFs indicate predominantly short-term money.
"The net inflow into offshore funds compared with the net outflow from offshore ETFs suggest that, despite concerns, foreign investors continue to view India as a long-term investment destination and their confidence on Indian markets and the country's economic prospects has not withered.
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