June 2020 (Page 20)

Famous offshore tax haven Cayman Islands is now the 10th largest source of Foreign Direct Investment (FDI) for India, leaving behind major nations like South Korea and the United Arab Emirates.

While inbound from tax havens have risen over the past few years, estimates released by the earlier this week show it spiked unprecedentedly in 2019-20.

Foreign direct equity investments in 2019-20 grew by 14 per cent, a four-year high, to a record $49.8 billion, according to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT) on Thursday.

The figures are expected to comfort policymakers who were worried about tepid growth in equity investments, which had contracted by 1 per cent in 2018-19 and risen only 3 per cent in the year before that.

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Mutual funds have invested just Rs 1,230 crore in stock during the and industry experts believe they are still waiting for a good “entry point” and maintaining high liquidity for any possible redemptions by corporate houses.

Going ahead, the primary factor that will determine mutual fund (MF) investment into equity will be their own inflows from investors. This will be put to test as many retail investors are facing the risk of pay cuts and job loss over the next quarter or so, said Vidya Bala, co-founder of Primeinvestor.in.

Overall, mutual funds have made a net investment of Rs 1,230 crore in stocks since the nationwide was announced on March 24 to tackle the (Covid-19) pandemic, latest data available with the Securities and Exchange Board of India (Sebi) showed.

MFs invested Rs 6,363 crore in