Foreign portfolio investors (FPIs) continued to sell India-dedicated funds in February. These funds witnessed outflows of $614 million led by non-ETF outflows of $441 million. Interestingly, active funds (non-ETF funds) saw outflows of $441 million while non-active (ETF funds) saw inflows of $355 million, according to a report by Kotak Institutional Equities (KIE).

Listed fund flows were positive for most of the countries, except India and Thailand, who saw outflows of $86 million and $18 million, respectively. Brazil and South Korea saw inflows of $803 million and $431 million, respectively. Allocations to China and India constitute 42% of the average Asia ex-Japan fund portfolio. Allocation to India by Asia ex-Japan funds declined to 11.8% in February from 12.3% in January. Allocation by Asia ex- Japan GEM (Goldman Sachs ActiveBeta Emerging Markets Fund) non-ETF funds to India declined to 12.4% in February from 13% in January while allocation to India by non-ETF funds declined to 9.5% in February from 9.7% in January.