Global investors continued to withdraw their money from India-focused equity funds in the first six months (January-June) of 2011. They pulling out USD 138 crore even as inflows into funds targeting developed markets touched nearly USD 5,000 crore. According to international fund tracking firm EPFR, the developed market-focused funds was USD 4,944 crore in the January-June period of the 2011 year, compared to an outflow of USD 3,481 crore in the year-ago period.
Same time, India dedicated funds remained alienated and witnessed redemption's of USD 138 crore in the January-June of 2011, compared to the outflow of USD 75.8 crore in the year-ago period.
In the 2011, January-March quarter, investors withdrew USD 85.7 crore from India focused equity funds.
Consequently, investors parked funds in developed nations. US-focused equity funds took in USD 2,030 crore in the first half of 2011, while global equity funds attracted USD 2,385 crore funds targeted at Western Europe pulled in USD 450 crore and Japan funds witnessed the inflow of USD 163 crore.
The overall emerging market equity funds saw the net outflow of USD 1,172 crore in the first half of 2011
Analysts believe that investors are shifting money from emerging market equity funds to developed nations due to the ongoing struggle against inflation in many key markets. The Greece debt problems, Crisis in the Middle East and Japan's nuclear situation also drove investors out of emerging markets.
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