India promises more stability to FIIs than China: Radhika Gupta

Edelweiss Mutual Fund MD and CEO Radhika Gupta said that India promises more stability to the FIIs than China. During an interaction with Fortune India, she also said inflows will come in as the interest rates soften in the US.

“As interest rates start to ebb in the US, I suspect you will see inflows. Also, FDI in India has not slowed down. And FDI is a good long-term capital. Companies are investing in India, GCCs are opening up. It is not that the global investors have turned bear on India. Secondly, from our lens, the amount of capital waiting at the sidelines looking to enter India has never been more exciting, especially with what is happening with China. If one wants to deploy large capital outside the US, there are only two major markets today – India and China. And India promises a lot more stability,” Gupta said.

She said retail investors should not care what the FIIs are doing. “When the FIIs allocate, they look at their home country first. From 2021 to present was a period of rising interest rates globally. When the US junk bonds are giving you 10% to 12%, when the US equities are doing so well, then the hurdle to invest in any emerging markets is higher,” she added.