India-dedicated funds see outflows of $417 million in July

Flows from global emerging market funds into India amounted to $459 million, led by non-ETF inflows of $318 million, taking the total inflows in CY21 to $5.6 billion.

India-dedicated funds saw outflows of $417 million in July, led by non-ETF outflows of $365 million, taking the total outflows in the category to $2.5 billion in CY21, the EPFR data compiled by Kotak Institutional Equities shows.

Flows from global emerging market (GEM) funds into India amounted to $459 million, led by non-ETF inflows of $318 million, taking the total inflows in CY21 to $5.6 billion.

Inflows from India-dedicated, GEM, and other categories of funds into India totalled $6.1 billion in CY21. 

Assets under management (AUM) of India-dedicated funds have risen 9.6 per cent in the year to July to $42.6 billion. AUM of GEMs have surged 23 per cent to $139.4 billion in the same period.

Listed emerging market fund flows were positive for most countries. China  witnessed $5.2 billion of inflows, followed by Taiwan and South Korea, which saw $979 million and $219 million of inflows. 

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 China and India constitute  47 per cent of the average Asia ex-Japan fund portfolio. Allocations to India by Asia ex-Japan funds increased to 14.8 per cent in July from 13.5 per cent in the previous month, while allocations to India by GEM funds increased to 11.6 per cent from 10.8 per cent in the same period. 

Allocations by Asia ex-Japan non-ETFs to India increased to 15.6 per cent in July from 14.3 per cent in the previous month, while allocations to India by GEM non-ETFs increased to 11.2 per cent from 10.6 per cent.

Financials witnessed heavy selling in July, with outflows of $1.5 billion, while  consumer discretionary saw the most buying to the tune of  $517 million.