FII are hedging long term bets

DECCAN CHRONICLE.
Published May 18, 2017, 12:36 am IST
Updated May 18, 2017, 12:36 am IST
According to Morningstar, a research firm, flows into India-dedicated offshore funds are generally considered to be long-term in nature.
Of the total quarterly net inflow of $2 billion, India-focussed offshore funds registered net inflow of about $1.5 billion whereas India-focussed offshore ETFs witnessed net inflows of $0.5 billion.
 Of the total quarterly net inflow of $2 billion, India-focussed offshore funds registered net inflow of about $1.5 billion whereas India-focussed offshore ETFs witnessed net inflows of $0.5 billion.

Mumbai: While overseas funds focussed on Indian equities witnessed net inflows during the quarter ended March 2017, India focussed offshore funds witnessed higher net inflows compared to India focussed offshore ETFs suggesting that a major portion of the fresh capital being committed to Indian markets are long term in nature.

According to Morningstar, a research firm, flows into India-dedicated offshore funds are generally considered to be long-term in nature, whereas flows into India-focussed offshore ETFs indicate short-term money.

“The higher inflows into India-focussed offshore funds compared with India-focussed offshore ETFs suggest that foreign investors are regaining confidence in Indian markets and viewing India as a long-term investment option,” it said.   

Of the total quarterly net inflow of $2 billion, India-focussed offshore funds registered net inflow of about $1.5 billion whereas India-focussed offshore ETFs witnessed net inflows of $0.5 billion. In 2016, these funds witnessed a net outflow of $2.5 billion.





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