Helios Capital’s Samir Arora Advocates for FII Flows Over PE in Cryptocurrency Market: Impact on Bitcoin (BTC)

  • Ace investor Samir Arora of Helios Capital has urged Indian investors to shift their focus from PE (private equity) flows to FII (foreign institutional investors) flows.
  • Arora argues that the current PE flows into India, which average around US$ 25 billion per year, will become unsustainable over time.
  • He suggests that FII flows, which average around US$ 20 billion per year, are a more stable and sustainable investment strategy.

Samir Arora, a renowned investor, advocates for a shift in investment focus from private equity to foreign institutional investors in India, arguing for the sustainability and stability of the latter.

Arora’s Argument Against PE Flows

Arora’s argument against PE flows is based on the premise that they will become unsustainable over time. He suggests that the current PE flows into India, which average around US$ 25 billion per year, will eventually need to be replaced by new flows. This replacement, he argues, will need to be significantly larger to account for the outflows and additional inflow, leading to an unsustainable cycle.

The Case for FII Flows

On the other hand, Arora argues that FII flows, which average around US$ 20 billion per year, are a more stable and sustainable investment strategy. Unlike PE flows, FII flows do not have a fixed tenure and can be more easily managed in response to market fluctuations. Arora suggests that with similar returns to PE flows, FII flows are less likely to be redeemed, making them a more reliable investment.

Recent Trends in Foreign Investment

Recent data from the National Securities Depository Ltd (NSDL) shows that foreign investors sold Indian equities worth more than ₹8,600 crore in April and ₹18,375 crore in May. The share of foreign institutional investors (FIIs) in NSE-listed companies also fell to an 11-year low of 17.68 percent at the end of the March quarter. These trends suggest a shift in foreign investment patterns, potentially supporting Arora’s argument for a greater focus on FII flows.

Conclusion

Arora’s argument for a shift in investment focus from PE to FII flows presents a compelling case for the sustainability and stability of the latter. With recent trends in foreign investment supporting this argument, it may be time for Indian investors to reconsider their investment strategies.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.
spot_imgspot_imgspot_imgspot_img

Latest News

Ethereum (ETH) ETFs Surge in Popularity Amid Strong Market Response

<ul> <li>The cryptocurrency market has been bustling with...

Algorand (ALGO) Asserts Dominance in Everyday Blockchain Use: A Game-Changer for Crypto Adoption

<ul> <li>Algorand, the layer-1 blockchain network, has launched...

Upcoming IPOs: Key Companies Set to Launch Initial Public Offerings Next Week

<ul> <li>This week, the stock market...
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Daily Crypto Market Review: BTC, ETH, ONDO, LDO, LINK Price Trends and Analysis

Cryptocurrency markets have shown significant volatility today,...

Bank Nifty (NIFTYBANK) Share Price Live Updates: Real-Time Analysis and Trends for May 24, 2024

<ul> <li>The Bank Nifty index has shown significant...
Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
spot_imgspot_imgspot_imgspot_img

London Stock Exchange Slashes ETF Team by 50% Ahead of Major Crypto Launch Featuring Bitcoin (BTC)

<ul> <li>The London Stock Exchange Group Plc (LSE) faces significant changes as it prepares to list its first cryptocurrency-related products.</li> ...

Upcoming IPOs: Key Companies Set to Launch Initial Public Offerings Next Week

<ul> <li>This week, the stock market is abuzz with several initial public offerings (IPOs) scheduled to debut.</li> <li>Investors...

Standard Chartered Predicts $150K Bitcoin (BTC) and $8K Ethereum (ETH) by 2025, Eyes Solana (SOL) and XRP ETFs

<ul> <li>The SEC's recent approval of spot Ethereum ETFs has sparked optimism in the crypto market.</li> <li>Analysts are now speculating on the...