Mumbai: India and Taiwan were the favourite emerging markets for Global Emerging Market (GEM) funds.
These funds numbering 417 had a total allocation of $344 billion. They allocated 10.6 per cent (from 10.2 per cent in April 2014) of their funds to India in May against 12.4 per cent to the whole of Asia ex-Japan.
Over the past three months, India and Taiwan have been preferred over China and Korea by Asia ex-Japan funds. Kotak Institutional Equities foreign fund-flow tracker that gives a comprehensive view of market-flow activity by listed funds into India and its emerging market (EM) peers revealed that listed funds emerged as the biggest FII participants over the past four weeks, recording inflows of $1 billion.
India-focused ETFs were the biggest contributors in the category ($0.75 bn).
These passive instruments have been active across the EM region in June, it said.
The number of India dedicated funds was 78 with accumulated net assets of $25 bn.
There were a total of 728 funds for Asia excluding (ex) Japan with assets of $223 billion and 1,564 funds for emerging markets with assets of $789 billion.
Funds benchmarked to the MSCI EM Index saw inflows of $2.5 bn in June, taking their 12-week tally to $6.7 bn.
Active funds seemed to be overweight on India considering the average GEM-focused ETF allocations to India amounted to 7-8 per cent said KIE.
EM-focused active funds were positive over the period with inflows of over $1 bn while ETFs tracking the MSCI India Index saw inflows of $ 0.3 bn over the past four weeks alone.
