New Delhi: India-focussed offshore funds and exchange-traded funds (ETFs) witnessed a net outflow of USD 5 billion in three months ended March 2020, making it the eighth consecutive quarter of withdrawal amid the coronavirus pandemic, according to a Morningstar report. In comparison, a net outflow of USD 2.1 billion was witnessed during the quarter ended December.
Since the quarter ended June 2018, the category has lost USD 16.3 billion of net assets. India-focussed offshore funds and ETFs are some of the eminent investment vehicles through which foreign investors invest in Indian equity markets.
Of the total quarterly net outflow of USD 5 billion, India-focussed offshore ETFs registered a net withdrawal of USD 3.6 billion, while the remaining USD 1.4 billion was withdrawn by India-focussed offshore funds, the report noted.
The gravity of the situation in recent times can be gauged from the fact that the net outflows for the category in the first three months of 2020 was close to the amount of net outflows the category witnessed in the calendar year 2018 (USD 5.3 billion) and 2019 (USD 5.9 billion).
