Listed foreign funds withdrew $744 million in December

With funds outflow of USD 744 million, listed foreign funds investing in India continued to be sellers in December last year, says a report.

It was led by non-ETF (exchange traded funds) outflows of USD 601 million, according to Kotak Institutional Equities' foreign fund-flow tracker.

"Listed funds investing in India continued to be sellers in December. India has seen USD 744 million of outflows, led by non-ETF outflows of USD 601 million," the report said.

Global Emerging Markets (GEM) funds saw redemptions amounting to USD 381 million (mainly non-ETF redemption of USD 362 million).

Meanwhile, selling was seen across all emerging markets with the exception of Russia and Thailand during December.

"China and South Korea had the highest outflows at USD 2.9 billion and USD 2.5 billion in December," the report said.

Outflows from China were at USD 9 billion in calender year 2016, it added.

KIE's foreign fund-flow tracker gives a comprehensive view of the market flow by listed funds into India and its emerging market (EM) peers.

These market participants are further classified based on their investment styles [passive (ETFs) or active (non-ETFs)] in an attempt to understand the intent and sentiments governing the flows.