AUM of India-dedicated funds rise 8.3% in H1 of CY21 to $42 billion

Allocations to India by Asia ex-Japan funds remained stable at 13.5% in June while those by GEM funds declined to 10.8% in June from 10.9% in May

Listed emerging market fund flows were mixed in June. China, South Korea and Brazil saw $3.4 billion, $3 billion and $539 million of outflows, while Taiwan and India saw $1.1 billion and $210 million of inflows, the EPFR data compiled by Kotak Institutional Equities shows.

India-dedicated funds saw modest inflows of $27 million in June, paring the total outflows for CY21 to $2.1 billion.

Flows from global emerging market (GEM) funds into India amounted to $86 million, taking the CY21 inflows to $5.1 billion. Inflows from India-dedicated, GEM, and other categories of funds into India totalled $5.9 billion in CY21.

Assets under management (AUM) of India-dedicated funds have risen 8.3 per cent in the year to June to $42 billion. AUM of GEMs have surged 22 per cent to $138.2 billion in the same period.

The EPFR fund-flow data primarily tracks mutual funds, ETFs, closed-end funds, variable annuity funds, and insurance-linked funds. It does not include investments from hedge funds, proprietary desks and sovereign wealth funds, which are tracked by NSDL.

Allocations to India by Asia ex-Japan funds remained stable at 13.5 per cent in June while allocations to India by GEM funds declined to 10.8 per cent in June from 10.9 per cent in May. Allocations by Asia ex-Japan non-ETFs to India increased to 14.3 per cent in June from 14.2 per cent in May, while allocations to India by GEM non-ETFs remained stable at 10.6 per cent in June.

Financials witnessed heavy buying in June, with inflows of $1.3 billion, followed by consumer discretionary ($395 million).