India-dedicated funds follow global EM trend as outflows hit $547 mn in May

In all, funds tracked by EPFR saw net outflows of $1.2 billion, accounting for nearly a fourth of $5.2 billion outflows by FPIs in May

India-dedicated funds witnessed outflows of $547 million in May, adding to the foreign outflows from the domestic market. 

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, data compiled by Kotak Institutional Equities (KIE) shows. 

Data on funds tracked by EPFR comes with a lag. The flows indicate investor sentiment towards India and emerging market (EM) pack, particularly of those investors that take the exchange traded fund (ETF) route to gain global exposure. 

The assets under management by GEM funds are about $126 billion and by India-dedicated funds are about $39 billion. 

The total AUM of the EPFR India universe is $241 billion. “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 says.