New Delhi: India witnessed an outflow of USD 91 million from listed foreign funds in 2017-18 after an infusion of USD 3.8 billion in the preceding fiscal, according to a report by Kotak.
The listed funds -- passive exchange-traded funds (ETFs) and active non-ETFs -- account for a large part of foreign portfolio investor (FPI) activity in India. As per the Kotak Institutional Equities report, India-dedicated ETFs saw an inflow USD 60 million in 2017-18, while a pull out of USD 151 million were seen from non-ETFs, resulting into an outflow of USD 91 million.
India-dedicated funds saw USD 474 million of outflows in March alone, while emerging markets funds witnessed an infusion of USD 495 million. However, FPIs have pumped in a staggering USD 2 billion into the Indian capital markets last month.
"China saw the highest inflows of USD 3.1 billion in March, led by strong ETF (USD 1.2 billion) and non-ETF flows (USD 1.9 billion)," the report noted.
Fund allocation to India and China constituted more than one-third of the average Asia (excluding Japan) fund portfolio.
"Allocation to India by Asia funds (excluding Japan) increased to 12 per cent in March from 11.3 per cent in the previous month. Fund allocation to India by emerging market funds dwindled to 9.5 per cent from 10.2 per cent at the start of the year," the report said.