Why foreign investors are increasingly drawn to India
Even with global market jitters and high valuations, foreign investors are putting more money into India-focused funds.
These funds feel safer than broader emerging-market options, thanks to India's young population, growing consumer base, ongoing reforms, digital boom, and a bigger share in global indices as China's influence dips, according to experts.
Surge in foreign investments
HSBC Mutual Fund India's India-specific funds domiciled in Japan and Luxembourg have tripled their assets in just two years.
In 2024 alone, FPIs invested about $20 billion into India.
SEBI has also made it easier for foreign investors to get started by simplifying applications and setting up a special outreach cell.
India's growing prominence
India's weight in the MSCI Emerging Markets Index has shot up from 8% 10 years ago to nearly 19% in 2025.
The country is now the world's fifth-largest economy.
Mutual fund assets have grown six times over the past decade.