Overall Foreign Interest In India Remains High After Election

BANGALORE: India as a country is known to have the capability to re-establish investor‘s confidence in its markets, even during the toughest of times. Increase in capital flows, foreign direct investments and overseas entities’ participation shows that the Indian market has done pretty well in recent times. Foreign companies are viewing South-Asian nations as a strategic hub for their operations and investments. It is seen that people in India are interested in making more of their investments abroad. According to a data given by Thomson Reuters recently, the outflows of Indian funds were $786 million last month, which is the highest since the global financial crisis. This report shows the increasing demand for India-only funds by the investors outside the country.   

Investors in other countries believe in diversification of investments and thus they prefer to invest in Indian-only funds for instance Aberdeen Global Indian Equity Fund , the world's biggest India-only fund run by Aberdeen Asset Management PLC , accounted for around 40 percent of the outflows, or a net $328.8 million, according to the data this week. After the new government stepping in, even the declining interest of funds in India has increased. According to this data by Reuters, most of the investors prefer to diversify their investments in different countries than sticking to one country itself.