Collective flows for all EPFR-tracked Emerging Markets Equity Funds hit a seven-week high going into the final days of May.
India focused equity funds have witnessed an inflow of over USD 9.5 billion from worldwide investors in the first six months of the year, while neighboring China has seen a hefty outflow of USD 17 billion during the same period, says a report.
After a long run as the emerging market equity sweetheart, investors may be falling out of love with India stocks.
Although India has begun to see some attraction from foreign money, mutual fund redemptions still continue and there are no inflows into India-dedicated funds says Cameron Brandt of EPFR.
Jitendra Sriram, MD & Head of Research, HSBC India says the EPFR data for India seems to suggests an outflow of almost USD 3 billion year-to-date while SEBI data shows an inflow of about USD 1.2 billion. So there is a disconnect.
While retail investors are leaving emerging markets, large institutional investors - such as pension funds, insurance companies and sovereign wealth funds - are still investing, albeit at a smaller clip than a year or two ago: BofA
Lei Lei Song, senior economist at Asian Development Bank, told CNBC that there has been no sudden reversal of capital despite swings in investors` risk perception.
Emerging market equity funds witnessed their biggest weekly redemption since early September, primarily due to Italy's inconclusive election and the Cyprus bank bailout, a report says.
Cameron Brandt, director of research EPFR, in an interview to CNBC-TV18’s Sonia Shenoy, gave his views on how the global market will perform going forward.
Global investors continued to withdraw their money from India-focused equity funds in the first six months of 2011, pulling out USD 1.38 billion even as inflows into funds targeting developed markets touched nearly USD 50 billion.
Emerging market equity funds struggled to attract fresh money last week and absorbed a mere net USD 265 million on account of outflows in commodity fund, says a EPFR report.