Foreign fund flows to India weakest among emerging market peers

Foreign fund flows to India weakest among emerging market peers

Wednesday, 29 June 2011, 12:01 Hrs   |    3 Comments
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NEW DELHI: Foreign fund flows into India have reduced significantly as the country witnessed inflows of just $40 million in the last three months, the weakest among its emerging market peers, says a report.

According to Kotak Institutional Equities' foreign fund flow tracker , "Flows to India continue to disappoint as China, Korea and Taiwan attract the largest inflows in the last three months."

At a time when Indian inflows totalled at $40 million, China had witnessed as much as $1.3 billion, Brazil $484 million and Russia $365 million.

India witnessed an outflow of $371 million last month, while China saw an inflow of $45 million during the period under consideration.

The report further noted that one of the factors behind the declining trend in Indian allocations was reduction in exposure by BRIC funds in the month of May.

BRIC funds reduced their Indian exposure from 14.6 percent to 12.9 percent in May.

The report said that China and Brazil are gaining at the expense of India.

Last month when BRIC funds reduced India exposure by 1.7 percent, they had increased their China exposure by 2 percent and Brazil exposure by 1.3 percent.

Meanwhile, the ten-largest India dedicated funds have witnessed a cumulative outflow of $285 million in the last four weeks.

Their AUMS have fallen by around 14 percent in the last three months, the report said, adding that "considering their changes in NAV, they have underperformed the broader market."

There are 1,288 emerging market dedicated funds, which are managing $708 billion of cumulative net assets. Asia (ex-Japan) has 574 such funds managing $238 billion AUM, Global Emerging Market dedicated funds total to 335 (managing $363 billion AUM) and India-dedicated 67 with a cumulative net assets of $27 billion.
Source: PTI
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Reader's comments(3)
1: If the Indian govt can tackle BLACK MONEY both inside and outside India ,,we can get plenty of money for investments probably like BONDS ,,may be give a one off pardon for poeple who hide their money abroad I do not know

2.There is also plenty of Gold ,,I agree ,,it is for a rainy day ,,but is that Rainy Day not Today with so many indians still struk in poverty
Posted by:rama anne - 30 Jun, 2011
2: Can any one answer my question ?
In India ever since independence ,the number of JAILS (inmates)increased in the same proportion as our population ?
Like in every industry there is fixed Man - Machine Ratio
does our respected Prime Minister know Police - Population Ratio !
time related -
Reporting and Action Plan !
Setting of Targets v/s Target achievement !
long term Targets v/s short term targets !

Let the world know what you are capable of that brings pride ( smile ) on every Indian ( that includes opposition party as well)
I have not been able to come across any prime minister who has/had the guts like our Late Lal Bahadur Shashtri had.
only those can think like Lal Bahadur Shashtri who are not afraid of losing anything -Yes ANYTHING mean any thing that one can imagine or think of.Of course except for one thing - your mental balance.
I am sorry to say the we,the bunch of so called "Intellectuals" feel led down

Posted by:ashok sehgal - 29 Jun, 2011
Answer to your questions are

Yes we do have poeple who are qualified but outside politics like sri Narayana Murthy ,,sri Nandan Nilkenni ,,sri Shiv Nadar

Alternatively ,,all political parties have to decentralise and pick good party base workers and promote them on merit to panchayat and Muncipal councils

Yes Shastri was a good PM ,,the PM that India needs and the structures we need are largely dependent on the current situation in Ind a

1.Urban Rural divide

2.Urban Planning and curbing corruption

3.Completing the projects on time with good quality iam talking about infrastructure
rama anne Replied to: ashok sehgal - 30 Jun, 2011