India-dedicated funds witnessed outflows of $547 million in May, adding to the foreign outflows from the domestic market, a report by Business Standard stated.
The report noted that, in total, funds tracked by EPFR saw net outflows of $1.2 billion, accounting for nearly a fourth of $5.2 billion outflows by foreign portfolio investors (FPIs) in May.
Of this, global emerging market (GEM) funds accounted for $426 million and other funds saw reported outflows of $201 million, it said quoting data compiled by Kotak Institutional Equities (KIE). The assets under management by GEM funds are about $126 billion and by India-dedicated funds are about $39 billion, added BS.
The flows indicate investor sentiment towards India and the emerging market (EM) pack, particularly of those investors that take the exchange-traded fund (ETF) route to gain global exposure, the report pointed out.
The KEI report noted that in May, ETF outflows stood at $408 million while non-ETF outflows came in at $139 million. However, a trend reversal is seen in the last 12 months' data, noted the report, the ETF outflows were at $1,342 million, while non-ETF outflows were at $1500 million.
“Listed emerging market fund flows were negative for most countries. China witnessed $2.8 billion of outflows, followed by India, Brazil, and South Korea which saw $1.2 billion, $805 million, and $637 million of outflows,” the KIE note said.
The total AUM of the EPFR India universe is $241 billion.
