The sharp rally in the US markets in recent months has provided an avenue for well-heeled investors to diversify their bets from lacklustre domestic markets.

Investors have pumped in ₹1,660 crore in Fund of Funds investing in the overseas markets in the September quarter against the net outflow of ₹305 crore logged in the June quarter.

The turnaround in overseas FoF investments reflect the investor sentiments as the inflows were just Rs 87 crore in the March quarter against net outflow of ₹59 crore logged in December quarter.

In September quarter, the industry has added 1.08 lakh folios of largely high networth investors who typically invest in this high-risk high-return MF offerings. A large chunk of MF overseas schemes are focused on the US markets.

SEBI halted MF investments in over

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