Investing abroad via Indian MFs is fast loosing momentum

Indian investors willing to invest in global equities have several options these days with rupee denominated funds made available by several fund houses. However the international investing theme has not the investors' fancy recently, as is reflected by the drop in the total assets under management (AUM) for these funds put together. 
The Indian funds that invest abroad have seen drop in AUM by almost 30 per cent in previous two years. This drop in AUM is disappointing for the schemes that invest in international markets as during the similar time frame , the AUM for mutual fund schemes that invest in Indian equities has grown by approximately 41 per cent.

There are almost 41 schemes that invest in international markets with approximately Rs 2,567 crore invested in the schemes put together, which tantamount to almost 1 per cent of the total industry AUM of Rs 13.8 trillion.

International investing made a lot of sense for Indian investors when the local markets struggled to generate positive return in previous few years. Since Indian equity markets have started the up move and quality stocks are gaining momentum, investors are now preferring to hold Indian equities.