Total investments pegged at Rs 1.75 trillion as on December 2015
overeign wealth funds (SWFs) are steadily increasing their investments in the Indian equity market and have become the third-largest category of overseas investors with a share of nearly nine per cent in the total foreign investment in the domestic stock market.
Data from National Securities Depository Limited (NSDL), which maintains information on flows from foreign institutional investors (FIIs) in the equity and debt segment, show that SWFs as a category has moved from sixth to third between 2012 and 2015.
The total investment of SWFs in Indian equity is pegged at Rs 1.75 trillion as on December 2015. In 2012, total equity investments of SWFs were only Rs 55,438 crore. Mutual funds and broadbased funds continue to be the two biggest categories of foreign investors in the Indian stock market.
SWFs refer to funds owned by countries. They are created from their respective reserves and used for investment purposes. Such funds typically invest in liquid assets such as stocks, bonds and gold, which can be redeemed easily as well.
