Business Standard

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

Related News

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) markets 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.

Read more on:   
|
|
|
|

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) markets 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

Read More

FIIs net buy Rs 624 cr, DIIs net sell Rs 241 cr

Foreign institutional investors (FIIs) were net buyers of Rs 624.10  crore (provisional) today, according to data released by BSE.

Recommended for you

Advertisements

Quick Links

Market News

Reliance MF ties up with Korea's Samsung AMC

Two entities on Friday signed an MoU in this regard

Jhunjhunwala sells Rs 67-cr worth shares in Sterling Holidays

Investor Rakesh Jhunjhunwala has sold majority of shares held in leisure hospitality and Vacation Ownership company Sterling Holiday Resorts ...

Why did HDFC Bank sell down NPA of Rs 550 crore?

Market speculation points to a large steel account which could be on the verge of turning into NPA

CBDT to settle FII tax claims under DTAAs in a month

I-T dept has sent notices in 68 cases to FIIs for payment of dues totalling Rs 609 crore towards Minimum Alternate Tax

Sensex drops 297 points to end below 27,450; Infosys slumps 6%

The 30-share Sensex ended down 297 points at 27,438 and the 50-share Nifty closed 93 points lower at 8,305.

 

Back to Top