FPIs see steady growth in debt investment
The fundamental reason for this sustained FPI flows into debt is the inclusion of Indian bonds in the JP Morgan EM Bond Fund and the Bloomberg Bond Index, which is expected to bring investment of around $25 billion.
Foreign portfolio investment (FPI) in India this fiscal has seen steady growth in debt investment in sharp contrast to the volatile equity investment, V.K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said on Saturday.
This rising trend in debt investment is evident in March too, with inflows of Rs 13,223 crore in debt through March 2022, he said.
The fundamental reason for this sustained FPI flows into debt is the inclusion of Indian bonds in the JP Morgan EM Bond Fund and the Bloomberg Bond Index, which is expected to bring investment of around $25 billion.
This investment will begin only by June 2024 and, therefore, FPIs are doing some front-running given this potential investment, Vijayakumar added.
FPI inflows into debt are likely to continue going forward. However, a sharp surge in debt flows is unlikely since the US bond yields have also risen in recent days, and if the differential between developed market bond yields, particularly US bonds, and Indian bond yields decline, the debt inflows will moderate, he added.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
07:59 PM IST