Dia-centred offshore funds, ETFS g $1.55 bn outflow in Jun quarter

India-focused offe funds and exchanged funds (ETFS) witnessed a outflow of $1.55 billion in e months ended June 2021, ing it the 13th consecutive ter of withdrawal, accordto a Morningstar report sed. This was significantly er than the net outflows of million registered during uarter ended March 2021. dia-focused offshore funds India-focused ETFS are e of the investment vehicles ceding quarter, the report mentioned.

While for some time now, the quantum of net outflows from the category was on a declining trend, the surge in the pace of net outflows during the June quarter has been a dampener. Interestingly, the segment received net inflows of $33.2 million in the month of March, which was the first monthly net inflow for the segment after 37 consecutive months of net outflows. However, this could not be sustained, as the scenario turned adverse with the onset of the second wave of Covid-19. inflow of $767 million seen during the March quarter and $882 million during the December quarter. Flows into offshore funds are generally considered to be long-term in nature, whereas flows into offshore ETFS indicate predominantly short-term investment.

The India-focused offshore fund and ETF category have been witnessing consistent net outflows since February 2018. The intensity had reached its peak in the March 2020 quarter, as almost $5 billion left its coffers. This was the highest quarterly net outflow that the catea