India-dedicated Funds See Inflows Of $356 Mn In Dec: Report

India-dedicated funds saw inflows of USD 356 million, broken down into USD 342 million of exchange-traded fund (ETF) inflows and USD 14 million of non-ETF inflows in December 2022, said Kotak Mahindra Bank in a report

The report added that global emerging markets (GEM) funds saw outflows of USD 904 million, led by non-ETF outflows of USD 1.1 billion, which were offset by ETF inflows of USD 240 million.

In December 2022, listed funds witnessed outflows of USD 1.1 billion, led by non-ETF outflows of USD 1.7 billion, which were offset by ETF inflows of USD 547 million.

Talking about the emerging market flows, it stated, "Listed emerging market fund flows were negative for most countries, except for China. China witnessed USD 3.6 billion of inflows."

South Korea, Taiwan and India saw outflows of USD 2.7 billion, USD 1.2 billion and USD 1.1 billion, respectively. Total FPI and EPFR activity showed similar trends for most countries.

Allocations to China and India constitute 45 per cent of the average Asia ex-Japan fund portfolio. 

Asia ex-Japan funds’ allocations to India declined to 16.6 per cent in December from 17.5 per cent in November, while allocations to India by GEM funds went down to 15.1 per cent in December from 15.6 per cent in November," it added.

Meanwhile, allocations by Asia ex-Japan non-ETFs to India declined to 17.1 per cent in December from 18 per cent in November, while allocations to India by GEM non-ETFs fell to 14.5 per cent in December from 15 per cent in November.