Sovereign Wealth Funds Investing In India: Good news related to Sovereign Wealth Fund and Public Pension Fund is coming out. It is being told that this year 2022 has been very good for investing in such funds. India has become the second most preferred market for investors after the US.
According to the report of asset manager Invesco, at present the AUM (AUM) of sovereign funds has been around $ 33 trillion i.e. around Rs 33 lakh crore. There has been a sharp increase in the investment made by these sovereign funds in private banks. But due to increase in fixed income with increase in interest rates, this investment may slow down.
heavy investment from investors
The US market has been the first choice for sovereign investors. In this regard, Invesco’s Head of Official Institution Rod Ringrow says that during the last 10 years, sovereign investors have made excellent investments. In this, the booming environment in the market after the global financial crisis has contributed significantly.
so much return
According to Invesco, the average annual return for sovereign investors in the last 10 years has been 6.5 per cent. In the last 10 years, the average annual return of Sovereign Wealth Funds has been up to 10%. Due to high inflation rate and tight monetary policies, the long term estimated returns may take a hit in 2022. In such a situation, 2022 can prove to be a turning point for sovereign investors.
India overtook China
India has achieved the status of the most preferred market for sovereign investors, leaving behind China in developing countries. India has jumped from the 9th position in 2014 to the second position in the list of sovereign investors’ choice. Whereas China is at number 6. Invesco’s study revealed that there has been a steady growth in the formation of Sovereign Wealth Funds in the last decade. In which about a dozen funds have been established in Africa. Of these, 11 have a strategic mandate to develop local economies.