HNIs, family offices chase returns abroad as India mkts underperform

With domestic equities lagging global markets, high-networth individuals (HNIs) and family offices are increasingly diversifying into offshore assets through portfolio management services (PMS) and alternative investment funds (AIFs) housed in Gujarat International Finance Tec-City (GIFT City).

- KHUSHBOO TIWARI

The shift is evident from a sharp rise in AIF allocations overseas.

As of June, investments into foreign jurisdictions stood at $1.43 billion, up nearly 70 per cent from $842 million at the end of March. Meanwhile, PMS assets operating out of GIFT City climbed 23 per cent to $1.46 billion during the April-June quarter, up from $1.18 billion at the end of March 2025.

Experts said the trend is being driven by underperformance in Indian stocks versus global peers. Between January and August 2025, the MSCI Emerging Markets (EMs) Index gained 24 per cent, MSCI World climbed 11 per cent, and MSCI Europe surged 26 per cent, while MSCI India increased just 2 per cent.