New Delhi: India-focussed offshore funds received a net inflow of USD 573 million in October, taking the total to nearly USD 5 billion in 2017, indicating that the country remains an attractive destination for overseas investors.
In comparison, these funds had registered an infusion of USD 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 USD 573 million last month, while those of ETFs witnessed a pullout of USD 31 million, translating into a total of USD 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.
"It's also apparent that it is mostly the short-term money that is moving out of the Indian markets," Morningstar India Senior Analyst Manager Research Himanshu Srivastava said.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.