Indian stocks top draw in Asia

By agencies   |   Monday, 04 July 2005, 19:30 IST
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MUMBAI: India Equity funds have recorded $216.7 million for the last month. Emerging Portfolio Fund Research stated, a research outfit that tracks funds with assets worth $1.44 trillion, India equity funds have proved to be enticement to investors. For the week to June 29, these funds received a net inflow of $74.03 million, despite net outflows of $88.7 million from Asia ex-Japan funds as a whole. Earlier, in the week to June 22, India equity funds mopped up $47.4 million worth of net inflows, while Asia ex-Japan Equity Funds recorded $47.5 million of inflows. India equity funds took in a net $95.3 million from the past two weeks. India equity funds have been the star attraction for investors in the Asia-ex Japan region. However, emerging market equity funds as a whole saw a combined outflow of $728.42 million in the second quarter of 2005, in marked contrast to the net inflows of $3.97 billion in the first quarter of the current year. But net inflows into emerging market bond funds continued to be in positive territory, although there has been a slowdown in inflows. These funds raked in a net $961 million worth of inflows in the second quarter, against $2.50 billion in the previous quarter. Year-to-date flows into this fund group amount to $3.47 billion, or 78 percent more than their full-year total for 2004. World equity fund flows were flat in the second quarter. According to Emerging Portfolio Fund Research, all equity fund groups posted net outflows except for global equity funds, US equity and Latin American funds. However, the bulk of the withdrawals from emerging market equity funds occurred during the earlier part of the second quarter, and there has since been a revival of net inflows. In the week to June 29, investors made net contributions of US$253.02 million to Global Emerging Market (GEM) Equity Funds while withdrawing money from all of the other emerging market equity fund groups (Asia ex-Japan, Latin America and EMEA).