 "India-dedicated funds see $5-billion outflows in one year, shows data")
India-dedicated funds saw outflows to the tune of $905 million, taking their 12-month outflow tally to $5.1 billion, according to a report by Kotak Institutional Equities (KIE) based on EPFR data. Global emerging market (GEM), and other funds, such as Asia ex-Japan regional, BRIC and global funds, have managed to more than offset these outflows. GEM funds saw inflows of $522 million in April and nearly $5 billion on a 12-month basis, while other global funds saw inflows of $376 million and $4.1 billion over 12 months.
GEM funds are the prime drivers of flows into emerging markets as they have assets under management (AUM) of $123 billion.
These funds invest in the markets, such as China, India, Taiwan, South Korea and Brazil. Allocations to China and India make up for nearly half the portfolio of GEM funds.
Allocation towards India by GEM funds declined to 10.2 per cent in April, from 10.6 per cent in March, while that by Asia ex-Japan funds declined to 12.7 per cent, from 13.3 per cent in March, according to KIE.
GEM funds — both ETF and non-ETF— have seen their assets soar 90 per cent in the past year. The jump in assets has been underpinned by a sharp rally in stock prices, with the MSCI EM index surging 48 per cent in the past year.
GEM funds are the prime drivers of flows into emerging markets as they have assets under management (AUM) of $123 billion.
These funds invest in the markets, such as China, India, Taiwan, South Korea and Brazil. Allocations to China and India make up for nearly half the portfolio of GEM funds.
Allocation towards India by GEM funds declined to 10.2 per cent in April, from 10.6 per cent in March, while that by Asia ex-Japan funds declined to 12.7 per cent, from 13.3 per cent in March, according to KIE.
GEM funds — both ETF and non-ETF— have seen their assets soar 90 per cent in the past year. The jump in assets has been underpinned by a sharp rally in stock prices, with the MSCI EM index surging 48 per cent in the past year.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%