India-dedicated funds saw inflows of $416 million in September, helping mitigate selling pressure from foreign portfolio investors (FPIs), a report by Business Standard stated.
Conversely, funds investing in global emerging markets (GEMs) and other funds (which include those investing in Asia — excluding Japan and global markets) pulled out $1,274 million and $472 million, respectively, the report informed.
The total outflows from funds tracked by EPFR Global, a data provider, stood at $1.33 billion, noted the BS report. It added that such funds accounted for a bulk of selling pressure from overseas investors the domestic markets witnessed in September.
According to the National Securities Depository (NSDL), total foreign portfolio investor (FPI) outflows from the domestic market stood at a record $1.6 billion in June.
If not for inflows from India-dedicated funds, the FPI outflow tally in September would have crossed $2 billion, the report pointed out.
It is important to note that the EPFR fund-flow data primarily tracks mutual funds, exchange-traded funds, 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 NSDL tracks.
The assets under management (AUM) of India-dedicated funds have declined 15 percent in the past year to $39 billion, informed the report, adding that the AUM of GEMs has fallen 22 percent to $122 billion during the same period.