Emerging Markets attracted USD 3.5 billion or 70% of Fresh Capital invested in Equity Funds

According to global fund-tracking agency EPFR, emerging markets attracted USD 3.5 billion or over 70 per cent of total fresh capital invested in the equity funds across the world during the week ended 2 November 2011.

For the week ended November 2, India-focused equity funds registered their biggest retail investor inflow since mid-December 2010. Most of such funds invest in India as FIIs ( Foreign Institutional Investors) and the capital flows through this route are a key factor in the stock market trends.  As per capital market regulator SEBI, FIIs made a net investment of USD 680 million in Indian equities during the week ended 2 November.

In its report, EPFR mentioned that equity funds dedicated to global markets saw net inflows of USD 4.9 bilion during the week ended 2 November while emerging markets equity funds collectively took in USD 3.5 billion. This was the biggest inflow for emerging markets equity funds since early April 2011.

The report noted that equity funds-dedicated to BRIC countries (Brazil, Russia, India, China) collectively saw net outflow during the week under review (week ended 2 November 2011).

Besides, Latin America equity funds attracted fresh capital for the first time since July 2011 and flows into Asia excluding Japan equity funds climbed to a 17-week high. equity funds focused to Japan witnessed an outflow of USD 620 million--the most since middle of the second quarter, 2010, due to rising yen.

Commodity funds attracted USD 438 million in inflows although energy funds suffered net redemptions of USD 667 million.