New Delhi: India-focused offshore funds and exchange-traded funds (ETFs) registered a net inflow of over $1 billion in July-September 2014, signalling growing interest by foreign investors in the country's growth story.
According to a report by mutual fund tracker Morningstar, “India-focused offshore funds and ETFs registered a net inflow of $1.18 billion for the third quarter of the calendar year 2014.”
This is the second successive quarter of inflows into India-focused funds after eight straight quarters of outflows “which indicates the growing interest by foreign investors in India story''.
Of this, India-focused mutual funds registered inflow of $678 million, while ETFs posted $505 million of inflow.
The strongest inflows came in the month of September at $490 million, following $171 million and $45 million in July and August, respectively.
An offshore India fund is one that is not domiciled in India but invests primarily in Indian markets.
In comparison, overseas investors poured in a staggering $14 billion into Indian equities till September 2014, of which $3.1 billion came in the third quarter.
Assets of all India-focused offshore funds and ETFs increased by 6.6 per cent to about $38.3 billion at the end of September 30, 2014. The total assets of these funds and ETFs are still down by 31 per cent from the peak of USD 55.7 billion in 2010.
Overall, India-focused offshore funds and ETFs witnessed a net outflow of $4.75 billion and $1.8 billion during 2013 and 2012, respectively.