Foreign Institutional Investment (FII): India
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India as an investment destination
Asia Pacific
2026
August 20, 2026: The Times of India
From: August 20, 2026: The Times of India
Mumbai: India has replaced Indonesia as the least preferred investment destination in Asia Pacific (excluding Japan) among global fund managers, a survey by BofA Securities showed. About 32% from among 105 fund managers cumulatively managing $272 billion ($2.6 billion on an average), said they were underweight on India.
“Lack of a clear AI exposure was the key concern for Indian equities, with weak growth emerging as the next most important risk,” the survey results showed.
This came despite investors increasingly viewing Asia ex-Japan equities as undervalued, the survey report noted. Compared to India, on the other end of the spectrum was Taiwan, with 55% of fund managers being overweight on the country, with semiconductors and hardware being the two most preferred sectors.
Fund managers, meanwhile, were concerned about India’s ability to reform, with 18% choosing ‘lack of reforms’ as a negative factor for their investment decisions in the country, up from 16% the previous month. There were also concerns about high valuations of Indian stocks. Nine per cent of those surveyed said it was a negative factor, up from 4% in July.
The survey also showed that 20% of those surveyed in Aug were concerned about weak growth, compared to 18% in July, a slight positive for India. Another positive factor was that in Aug none of the fund managers were concerned about rupee depreciation, a sharp reversal from 8% in July, the survey results showed.
The BofA report also noted that 59% of fund managers surveyed were hedging AI downside risk by rotating into value, cyclical, and defensive sectors, more than double the level seen in July. “Nearly two-thirds of investors require clearer evidence of AI monetisation before increasing exposure to AI-related stocks,” it said. The report also noted that for Asia ex-Japan, fund managers rotated out of cyclicals and technology into defensives sectors such as utilities, banks, staples, healthcare, and telecoms, while industrials and tech hardware recorded the sharpest declines.
YEAR-WISE DEVELOPMENTS
2010- 22: inflows
From: February 2, 2023: The Times of India
See graphic:
Foreign institutional investment VIS-À-VIS domestic fund inflows in India, 2010- 22
2014
2015: Private equity and FII investments
The Times of India Jan 01 2016
TIMES NEWS NETWORK
Total private equity (PE) investment in India in 2015 rose to its highest in eight years and almost equalled the total foreign direct investment (FDI) in equity inflows three years back, according to a report.
Investments from PE firms rose 67% to $21 billion in 2015, from $12.5 billion, a year earlier.The previous high was $18 billion, recorded in 2007, the report from VCCEdge said. The data excludes real estate and venture debt. A separate report from the same research firm had earlier said that PE funds invested about $2.4 billion in the real estate sector, across 53 transactions, in the first nine months of 2015, This was higher compared to $2.1 billion that they invested in 2014 across 80 deals.
FDI in equity inflows for 201213 was $22.4 billion, out of the total $34 billion the country received. Last year, India received total FDI investments of $44.3 billion, according to latest figures from the department of industrial policy & promotion (DIPP).
The report said angel and venture capital inflows helped early-stage investments. “It was an action-packed 2015 for early-stage investment in India as Angel and Venture Capital investments were the prime drivers of capital inflow. Angel and seed investments grew 64%, increasing to $327 million from $200 million in 2014,“ according to the report.
Venture capital funding also saw a rise, recording the highest ever jump to cross a new milestone in 2015. Overall 473 VC deals were registered during the year, up from 307 recorded in 2014. Deal value too more than doubled, shooting up to $5.4 billion during the year, compared with $2.3 billion a year earlier.
2019: Equity flows improve
From: Dec 7, 2019: The Times of India
See graphic:
In 2019: FII equity flows improved
See also
Financial Secrecy Index and India
Foreign currency inflows, outflows: India
Foreign Direct Investment (FDI): India
Foreign exchange reserves: India
Foreign Institutional Investment (FII): India
Foreign Portfolio Investors (FPI): India
Private equity investments in India, this page includes statistics that club PE/ VC capital together
