The depreciation of rupee against dollar and fear about interest rate hike in the US had triggered heavy redemptions in India-focused offshore funds, which are considered to be long term in nature. This, according to experts, has caused heavy selling in domestic equities over the last four months.
Data released by Morningstar, a global mutual fund research company, showed that the India focused offshore funds witnessed a net outflow of $966 million while India focussed Exchange Traded Funds (ETF’s) believed to be short term in nature saw a net outflow of $940 million during the period.