China leads in Aug flows among emerging markets

Listed emerging market (EM) fund flows were positive for almost all countries in August, with China receiving the most at $6.7 billion, followed by South Korea and Taiwan, which saw $3.4 billion and $2.1 billion of inflows, respectively.

Flows into India, however, totalled $983 million during the month, the EPFR data compiled by Kotak Institutional Equities shows.

India-dedicated funds saw outflows to the tune of $165 million in August, taking total outflows for calendar year 2021 (CY21) to $2.6 billion, the EPFR data shows.

Global emerging market (GEM) funds saw inflows of $1.1 billion, taking the CY21 inflow tally to about $6.6 billion.

Assets under management (AUM) of India-dedicated funds have risen 18.3 per cent in the year to August to $45.9 billion. In comparison, AUM of GEMS has risen 36.5 per cent to $154.5 billion.

The EPFR fund-flow data primarily tracks mutual funds, exchangetraded funds, closed-end funds, variable annuity funds, and insurance-linked funds. It does not include investments from hedge funds, proprietary desks, and sovereign wealth

Flows into India totalled $983 million in Aug, as against $6.7 billion into China and $3.4 billion into South Korea

funds, which are tracked by NSDL.

The overall allocations to India by Asia ex-japan funds increased to 15.9 per cent in August from 14.8 per cent in July, while that by GEM funds increased to 12.5 per cent from 11.6 per cent the previous month.

Financials witnessed heavy selling in August, with outflows of $338 million, whereas consumer staples ($283 million) and utilities ($213 million) saw the most buying.