Global investors pull out $4-bn from India-focused funds

Investors from across the world pulled out as much as $4 billion during 2011 from equity funds focused on Indian markets, amid concerns of high and spiralling inflation.

India-focused equity funds was the worst performer among BRIC (Brazil, Russia, India and China) and witnessed an outflow of $4.08 billion in 2011, as compared to an inflow of $1.35 billion in 2010, according to data complied by the international fund tracking firm EPFR Global.

As per market experts, investors in India funds were mainly worried about high fiscal deficit, inflationary pressures and rising interest rates.

Apart from India, funds dedicated to China also saw an outflow of $3.74 billion, while Russia and Brazil-focused funds also recorded net withdrawals.
    
Overall, the emerging markets equity funds registered an outflow of $47.7 billion this year, reversing half of 2010's $96 billion of inflows, on account of sovereign debt crisis in euro-zone and fears of a global slowdown.
    
The EPFR said that emerging markets saw heavy outflow " as headwinds from Europe, uncertainty about China's prospects next year and stubbornly high levels of in many countries kept investors on edge."
    
During entire 2011, developed market equity funds registered outflows of $124 billion, which is much higher than $66 billion pulled out in 2010. This was attributed to worst performance of the US equity funds which alone witnessed an outflow of $76 billion.
    
In contrast, Japan equity funds managed to attract capital worth $1.35 billion during 2011, the bulk of which came prior to the earthquake in March.
   
Overall, the global market equity funds registered outflows of $31.3 billion in 2011, as against an inflow of $8.62 billion in 2010.
   
EPFR said that the commodity sector funds posted inflows of $13 billion, thanks to the $8 billion committed to funds specialising in gold and precious metals.
   
In addition, funds focused on sectors such as consumer goods, real estate, utilities took in capital worth $2.31 billion, $3.79 billion and $3.78 billion respectively.
    
On the other hand, fund groups focused on healthcare, energy and financial sectors, experienced redemption ranging from $524 million to $2.65 bllion.

image
Business Standard
177 22
Business Standard

Global investors pull out $4-bn from India-focused funds

Press Trust of India  |  New Delhi 



Investors from across the world pulled out as much as $4 billion during 2011 from equity funds focused on Indian markets, amid concerns of high and spiralling inflation.

India-focused equity funds was the worst performer among BRIC (Brazil, Russia, India and China) and witnessed an outflow of $4.08 billion in 2011, as compared to an inflow of $1.35 billion in 2010, according to data complied by the international fund tracking firm EPFR Global.

As per market experts, investors in India funds were mainly worried about high fiscal deficit, inflationary pressures and rising interest rates.

Apart from India, funds dedicated to China also saw an outflow of $3.74 billion, while Russia and Brazil-focused funds also recorded net withdrawals.
    
Overall, the emerging markets equity funds registered an outflow of $47.7 billion this year, reversing half of 2010's $96 billion of inflows, on account of sovereign debt crisis in euro-zone and fears of a global slowdown.


    
The EPFR said that emerging markets saw heavy outflow " as headwinds from Europe, uncertainty about China's prospects next year and stubbornly high levels of in many countries kept investors on edge."
    
During entire 2011, developed market equity funds registered outflows of $124 billion, which is much higher than $66 billion pulled out in 2010. This was attributed to worst performance of the US equity funds which alone witnessed an outflow of $76 billion.
    
In contrast, Japan equity funds managed to attract capital worth $1.35 billion during 2011, the bulk of which came prior to the earthquake in March.
   
Overall, the global market equity funds registered outflows of $31.3 billion in 2011, as against an inflow of $8.62 billion in 2010.
   
EPFR said that the commodity sector funds posted inflows of $13 billion, thanks to the $8 billion committed to funds specialising in gold and precious metals.
   
In addition, funds focused on sectors such as consumer goods, real estate, utilities took in capital worth $2.31 billion, $3.79 billion and $3.78 billion respectively.
    
On the other hand, fund groups focused on healthcare, energy and financial sectors, experienced redemption ranging from $524 million to $2.65 bllion.

RECOMMENDED FOR YOU

Global investors pull out $4-bn from India-focused funds

Investors from across the world pulled out as much as $4 billion during 2011 from equity funds focused on Indian markets, amid concerns of high fiscal deficit and spiralling inflation.

Investors from across the world pulled out as much as $4 billion during 2011 from equity funds focused on Indian markets, amid concerns of high and spiralling inflation.

India-focused equity funds was the worst performer among BRIC (Brazil, Russia, India and China) and witnessed an outflow of $4.08 billion in 2011, as compared to an inflow of $1.35 billion in 2010, according to data complied by the international fund tracking firm EPFR Global.

As per market experts, investors in India funds were mainly worried about high fiscal deficit, inflationary pressures and rising interest rates.

Apart from India, funds dedicated to China also saw an outflow of $3.74 billion, while Russia and Brazil-focused funds also recorded net withdrawals.
    
Overall, the emerging markets equity funds registered an outflow of $47.7 billion this year, reversing half of 2010's $96 billion of inflows, on account of sovereign debt crisis in euro-zone and fears of a global slowdown.
    
The EPFR said that emerging markets saw heavy outflow " as headwinds from Europe, uncertainty about China's prospects next year and stubbornly high levels of in many countries kept investors on edge."
    
During entire 2011, developed market equity funds registered outflows of $124 billion, which is much higher than $66 billion pulled out in 2010. This was attributed to worst performance of the US equity funds which alone witnessed an outflow of $76 billion.
    
In contrast, Japan equity funds managed to attract capital worth $1.35 billion during 2011, the bulk of which came prior to the earthquake in March.
   
Overall, the global market equity funds registered outflows of $31.3 billion in 2011, as against an inflow of $8.62 billion in 2010.
   
EPFR said that the commodity sector funds posted inflows of $13 billion, thanks to the $8 billion committed to funds specialising in gold and precious metals.
   
In addition, funds focused on sectors such as consumer goods, real estate, utilities took in capital worth $2.31 billion, $3.79 billion and $3.78 billion respectively.
    
On the other hand, fund groups focused on healthcare, energy and financial sectors, experienced redemption ranging from $524 million to $2.65 bllion.

image
Business Standard
177 22

LIVE MARKET

BSE

  ( %)

NSE

  ( %)

More News

STOCK WATCH

Company Price() Chg(%)
Dish TV 102.90 9.58
IIFL Holdings 269.25 7.61
DCB Bank 111.00 6.88
Credit Analysis 1062.25 6.82
Eicher Motors 22465.80 6.60
> More on BSE Gainers
Company Price() Chg(%)
Dish TV 102.95 9.64
IIFL Holdings 267.65 7.21
DCB Bank 111.20 7.13
Eicher Motors 22460.85 6.45
Credit Analysis 1060.20 6.25
> More on NSE Gainers
Company Price() Chg(%)
JP Associates 12.13 -8.73
Religare Enterp. 256.20 -6.26
Star Ferro Cem. 115.85 -5.47
SPARC 357.15 -4.94
G S F C 69.95 -4.89
> More on BSE Gainers
Company Price() Chg(%)
JP Associates 12.10 -9.02
G S F C 69.85 -5.22
SPARC 356.95 -5.21
IL&FS Transport 73.45 -4.98
Castex Tech 13.90 -4.79
> More on NSE Gainers
Widgets Magazine
Widgets Magazine
Widgets Magazine

Derivatives

Index
Instrument Type
Expiry Date
Option Type
Strike Price

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard