Abstract
Growing economic interdependence in the 21st century encourages investment to flow from rich economies toward emerging market economies. Indian economy is considerably more integrated as well as interconnected than now compared to the past to economic liberalization. The growth of foreign portfolio investments in India has sparked the creation of wealth, jobs, as well as technological advancements. Research on portfolio management is required in light of the rise in private and institutional investments inside the Indian capital market from the management’s decisionmaking perspective that gets influenced by behavioural patterns of individual investors. The favourable yields offered by emerging markets as well as the anticipated potential results from adopting a market-oriented mind-set as the main drivers of international investors’ engagement in such markets. So, the current study gives direction in understanding the same, as secondary data from select asset management companies is analysed for their portfolio performance for a three year period, and conclusions are drawn based on results; which indicate that portfolio performance depends not only on investor’s risk mitigation strategies, but also on management’s financial decisions like the corporate social responsibility spending. The insights are helpful for global portfolio managers, local investors, as well as policymakers to understand the importance of overseas investments, paving way for further investigations considering macroeconomic and non-economic variables influence on investment strategies followed by corporates.
Keywords: Emerging Market, Global Market, Investment Decision, Management’s Decision, Portfolio Investment.