homemarket NewsInflows into India dedicated funds remains above average: EPFR Global

Inflows into India dedicated funds remains above average: EPFR Global

In an interview with CNBC-TV18, Cameron Brandt, Director-Research at EPFR Global, provided insights into the robust flow of investments into dedicated Indian funds, shedding light on the nation's enduring appeal to global investors.

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By Sonia Shenoy   | Nigel D'Souza   | Prashant Nair  Oct 10, 2023 12:38:31 PM IST (Updated)

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India stands out as an attractive investment destination amid a volatile global economic landscape, said EPFR Global Director Cameron Brandt.

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India's allocation in global portfolios remains stable, consistently ranging from 8% to 10% of the average portfolio. This steady allocation reflects the confidence that international investors have in India's potential and its ability to weather economic challenges.
"We are seeing a continued broad interest in Asia. Though the intensity of flows into dedicated India funds isn't quite what it has been, it’s still above average," he said in an interview with CNBC-TV18.
Brandt said India maintains a strong position in the investment landscape even though there are variations in the intensity of flows.  For instance, there have been major outflows in the Global Emerging Market (GEM) Equity Funds. "These outflows have been significant, typically ranging between $1 billion to $2 billion on a weekly basis. This trend signifies a shift in investments away from India, as the nation's share within these funds had been on an upward trajectory until recently," he noted.
Brandt had, in July, highlighted an inflow of $500 million into India's dedicated funds. He told CNBC-TV18 that this was the highest level of investment since the financial year 2015.
Investor sentiment, Brandt believes, remains positive due to several factors. India's strong growth potential, diverse demographic landscape, political stability, and ongoing infrastructure development initiatives make it an appealing choice for long-term investors. Recent financial market reforms aimed at improving transparency and regulatory ease have further bolstered India's investment climate.
Talking about the performance of other markets, he said, there are still robust flows week in and week out to China. Taiwan and Thailand equity funds had a multi-year high in terms of inflows in the past week.
For more details, watch the accompanying video

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