Fund of Funds (FoFs) investing abroad registered one other robust month of internet inflows at Rs969.34 crore, in keeping with knowledge from the Affiliation of Mutual Funds in India (Amfi) launched on Tuesday.
This was greater than 9 occasions the Rs110.2 crore that such funds acquired in the identical month, final yr. The surge occurred whilst most classes of home fairness funds noticed internet outflows. Solely multicap funds registered larger flows on the home fairness facet at ₹4,077.94 crore.
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FoFs investing abroad additionally noticed recent launches in February with Axis Higher China Fund of Fund and Kotak Nasdaq 100 Fund of Fund. “Abroad investments must be part of the portfolio. The vary may be 5-15%. In the previous couple of years, Indian markets haven’t finished in addition to world markets, notably worldwide tech shares. That is what’s driving flows into such funds. The ASEAN economies look notably enticing at this level of time. These have been badly hit by the covid-19 pandemic and their markets supply worth,” mentioned Gaurav Awasthi, senior companion, IIFL Wealth Administration.
“The US market must be a part of your core allocation however this might not be the fitting time so as to add publicity to the US tech shares put up the run up that has occurred there. Tech shares in India are much more enticing. The worth theme additionally seems to be enticing each within the US in addition to within the home market,” he added. The NASDAQ 100 has delivered a CAGR return of round 25% over the previous 10 years in comparison with round 12% on the Nifty 50.