See no signs of concern for market: Motilal Oswal AMC

Q: Are you getting a handle of what kind of money this is that were attracting? Is it the last bit of money that was sitting on people's portfolio and is now being deployed in markets or are you hearing and sensing that there is fresh money being raised for a market like India?

A: This is based on my personal interaction with a few large investors over the last two weeks that I was traveling. The sense we are getting is that this is actually not hot money and the reason we say is that most of the money that we see coming in is from allocators or large institutional investors who mostly allocate across markets and geographies and asset classes.

So it doesn't look like hot money. It doesn't look like it's the hedge fund kind of an asset flow. A lot of the flows that we have seen in the last few weeks has come in from exchange-traded fund (ETF) players and those typically tend to be more stable long-term investors who take a call on allocations.

There is a mega trend that we are seeing, which is that allocations are going to continue to be higher towards emerging markets and within especially China, India and Brazil. And unless the allocations to emerging markets start to change drastically, I don't think these flows would emerge quite quickly. Hence it gives us a lot more confidence that this is not a frothy bubble in a capital that we are seeing coming in.

Now is there an element of that money? There is always going to be a percentage of that kind of money that likely to take advantage of momentum but we are a little more comfortable that this is not the hot money that may move out as quickly as it is coming in.

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