Managing around $6-bn (Rs 28,000-crore) India dedicated offshore funds, Rukhshad Shroff, investment manager and India country specialist, JP Morgan AMC, Hong Kong, told Hindustan Times that India is poised to receive strong fund flows in future. Excerpts:
What kind of appetite you see in foreign investors for India?
Foreign investors have already invested around $12 billion (Rs 56,400 crore) in 2010 in India and that too in an environment not particularly conducive globally. Investors globally are investing more money in India. In the long term, inflows will go up as a large part of the world still has not got adequate exposure to India, which is slowly going up.
How much have you deployed in India?
Our India-dedicated offshore funds have a total pool of $6 billion and along with it there are other funds that have $2-4 billion more. So we have a total of around $8-10 billion invested in Indian equities.
Which sectors do you think are poised for growth in India?
There are two broad-based themes that should unfold as growth unfolds. Consumption is one, which is happening across the board, and the second is infrastructure. A lot of investment is happening in infrastructure. But finally it comes down to individual companies and one has to be selective on stocks.
What sort of returns you see going forward?
Short-term volatility is random and no one can predict that. However, on a 3-5 year term, I am very confident and see earnings to grow at around 25 per cent. Also India will see capital coming its way because it has got growth and has got an environment that facilitates returns.