New Delhi, June 4 -- Foreign portfolio investors (FPIs) outperformed Indian mutual fund managers on rupee returns last year, even though they pulled out a then $27 billion from the country's equity markets. This is mostly explained by the composition of their portfolios , largely Nifty top 50 -100 stocks, which outperformed mid- and small-cap benchmarks.

Though the tables have turned in the first quarter of the current calendar year with the broader markets outperforming the Nifty, it's still early days.

To be sure, the picture on FPI returns undergoes a sea change when adjusted for the steep rupee depreciation, which would adversely impact their returns. The rupee weakened by around 5% in 2025 and by 5.5% in the March quarter.

In 2025...