Global equity funds rake in $6 bn for week ended June 15

Global market equity funds attracted more than $6 billion worth of fresh capital during the week ended June 15, even as India-focused equity funds continued to witness outflows.

During the week ended June 15, equity funds dedicated to developed markets saw net inflows of $6.03 billion, largely on the back of sizeable flows into funds targeting the US, according to data compiled by international fund tracking firm EPFR.

In particular, US-focused equity funds registered $9.8 billion worth of inflows during the period under review.

In contrast, investors withdrew about $800 million from emerging market equity funds.

Investors are giving emerging markets a miss owing to the soaring food prices and high interest regimes prevailing in such countries. Investors are also parking their funds in the US because of Greece's debt problem.

"With the outlook for major developed markets deteriorating and inflation keeping up the pressure on monetary policymakers in China, India and Brazil, emerging market equity funds experienced another week of tepid flows that ended with all four of the major fund groups posting modest outflows," the report noted.

India-focused equity funds recorded their seventh straight week of outflows -- and their biggest since late March -- due to high domestic inflation and the tight monetary policy.

However, the EPFR did not disclose India-specific fund outflow data. According to information available with SEBI, foreign institutional investors (FIIs) pulled out $135 million from the Indian market during the week under review.

In contrast, high inflation in Brazil and Russia did not stop investors from committing fresh money to funds dedicated to these countries.

Apart from emerging market equity funds, funds dedicated to Latin America, developed markets equity funds and Europe equity funds were under pressure and saw outflows.