1. India-dedicated funds see record inflows despite EM redemptions

India-dedicated funds see record inflows despite EM redemptions

India-focused listed funds saw record inflows of $1.7 billion in January, offsetting redemptions in the emerging...

By: | Published: February 13, 2015 12:42 AM

India-focused listed funds saw record inflows of $1.7 billion in January, offsetting redemptions in the emerging markets (EM). Meanwhile, redemptions from EM-focused funds exceeded $3 billion in January

As per data from Kotak Institutional Equities’ foreign fund flow-tracker, net inflows into India amounted to $1.3 billion in January through active and passive channels. Listed funds made a substantial portion of the FII activity in India, in stark contrast to the region.

Allocations to India by Asia-ex-Japan (13.7%) was stable in December. At the same time, GEM funds continued to build up their positions in India at the expense of Russia and Brazil.

Allocations to India by regional funds were up 1.7-2.4% over the past 12 months. Active funds remain overweight on India considering the average GEM-focused ETF allocations to India amounted to 7-8%.

Exposure to India by GEM funds (11.9%) continued to inch up in December. Funds benchmarked to the MSCI EM saw outflows of $2.5 billion in January. Meanwhile, ETFs tracking the MSCI India Index saw inflows of $0.69 bn over the past four weeks.

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