$27 billion riding on these top 10 largest offshore India-Focussed equity funds and ETFs

The total assets of the 10 largest India-focussed offshore funds and ETFs swelled during the quarter ended June 2017 compared with the previous quarter.

It ended the June quarter at USD 27.3 billion compared with USD 25.4 billion in the previous quarter and USD 20.5 billion as of June 30, 2016, Morningstar said in a report.

Positive environment in the domestic markets kept sentiments in the Indian stock markets upbeat, leading almost all the major domestic stock market indexes to surge during the quarter, said the report.

The S&P BSE Sensex Index moved up by 4.4 percent, although it was lower than the 11.2% appreciation it witnessed in the previous quarter (ended March 2017).

These funds constitute around half of the overall assets of the India-focussed offshore funds and ETF universe. For the June quarter, the list of the 10 largest India-focussed offshore funds and ETFs remained unchanged from the previous quarter.

IShares MSCI India retained its top spot as the largest India-focussed offshore fund and ETF during the quarter. Robust inflows helped the fund’s asset size to grow to USD 5.0 billion from USD 4.7 billion in the previous quarter.

Strong flows and surging markets expanded the asset base of Franklin India A Acc, which grew during the quarter to USD 4.3 billion from USD 4.1 billion recorded in the previous quarter. The fund continues to retain its second spot among the 10 largest India-focussed offshore funds and ETFs.

Backed by consistent inflows, Nomura India Equity has been rising on the charts. In the last quarter, it moved up one spot to the fourth position, and in this quarter, it moved up another notch to the third position, displacing Aberdeen Global Indian Equity to fourth.

The fund ended the quarter with an asset size of USD 3.3 billion, significantly higher than the USD 2.3 billion in the previous quarter. In June 2016, the fund’s size was USD 852 million.

Consistent net outflows continue to dent the asset base of Aberdeen Global Indian Equity fund. During the quarter, it slipped one spot down to the fourth position.

At the end of the June quarter, its assets stood at USD 3.3 billion, almost the same as that in the previous quarter. Its current asset size is lower than the size of USD 3.6 billion at the end of the June 2016 quarter.

Earlier, it was the largest fund in the category. However, huge and steady outflows have resulted in the fund’s assets reducing significantly and it losing its top position.

With an asset size of USD 2.3 billion, GS India Equity Portfolio A retained its fifth position in the list during the quarter. The fund had an asset size of USD 2.2 billion at the end of the previous quarter.

Flows into India focused funds:

India-focussed offshore funds and ETFs continue to receive robust flows during the quarter ended June 2017 as well.

Through the quarter they garnered net assets worth USD 2.6 billion, higher than the net inflow of USD 2.0 billion they had received in the previous quarter.

So far, this year (until June 2017), the category has received net assets worth USD 4.6 billion. During the same period last year, the India-focussed offshore funds and ETFs witnessed a net outflow of USD 2.3 billion. The total universe for asset flows are 220 Primary Funds and ETFs.