Investors stay put in overseas funds despite deep corrections in markets

Maturity in dealing with equities, taxation likely reasons as schemes see positive flows even after 25-35% correction

Indian investors with allocations in international mutual fund (MF) schemes remained unfazed by the deep corrections in global markets in 2022.

Data released by the MF industry shows that fresh investments in international fund of funds (FoFs) outweighed the redemptions in ten out of 12 months in the December 2021 to November 2022 period.

The continued flow of fresh investments also ensured that the assets under management (AUM) of international FoFs do not shrink by a big margin.

The AUM declined only 15 per cent in the last one year – from Rs 24,000 crore to Rs 20,300 crore --