Offshore funds, ETFs see $2 bn inflows in Q1 this year

India-focused offshore funds witnessed an inflow of $1.46 billion the first quarter.

The Dollar Business Bureau

Exchange-traded funds (ETFs) and offshore funds in India recorded a net inflow of $2 billion in the first quarter of this year compared to a huge outflow of $1.3 billion in the same period a year-ago.

An offshore fund is referred to a collective investment scheme that is not domiciled in the country but primarily invests in its markets.

As per a report by Morningstar, offshore funds focused on India witnessed an inflow of $1.46 billion, whereas ETFs registered an inflow of $509 million, making the total at $2 billion.

During the quarter of October-December last year, this category had registered a net inflow of $449 million.

The category saw net inflows of $196 million during the quarter July-September 2016. However, these saw outflows of $826 million in the period April-June last year. 

“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.

Comparatively, Foreign Portfolio Investors (FPIs) witnessed a strong net inflow of $6 billion during the January-March quarter of this year.

The Dollar Business Bureau - May 05, 2017 12:00 IST