India Focused Offshore Fund Exits ETF in 12th Quarter

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Investors pulled out Rs 376 crore from India Folk Offshore Fund and Exchange Traded Fund in the March quarter. Along with this, there has been selling in consecutive quarters. However, outflows declined in the March quarter, while the net outflows in the December 2020 quarter stood at 986 million. In the Indian equity markets, investments are made by foreign investors in India Focused Offshore Funds and ETFs.

1.1 billion investments in the offshore trap segment were withdrawn during the quarter ended March 31. This is down from the last quarter’s 1.9 billion. It is noteworthy that selling was seen in January-February. March saw an influx of 33.2 million. This gives a positive indication on a monthly basis that the investment has been made for the first time after 37 months.

776 million investment in offshore ETF’s, 776 million in offshore ETF segment was recorded in the March quarter. The December quarter saw sales of 882 million. Investors in the focused offshore and ETF fund categories have been consistently pulling back the Fed since February 2018. In which partial investment was seen in March. The Fed has withdrawn up to 5.5 billion from this segment.

Investments Increased as ETFs proved profitable for short-term investing

Generally, India focused offshore nets are made for long term investment purpose. Whereas investing in offshore ETFs is a part of short term investment. Foreign investors are increasing their exposure to get short term returns as Indian stock markets are performing well in the current crisis.

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