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Emerging market equity funds attracted $1.59 billion worth of fresh capital during the week ended April 20, far more than the $22 million collected by funds dedicated to developed markets, according to a report.
The latest infusion marks the fourth straight week that the emerging market equity funds have witnessed net inflows, according to data compiled by international fund tracking firm EPFR.
In addition, this was the second consecutive week where emerging market equity funds witnessed bigger inflows than their counterparts targeting developed markets.
Many factors
Capital inflows into developed market-focused funds slowed sharply over concerns about the economic implications of Japan's ongoing nuclear crisis and the euro zone sovereign debt crisis, coupled with weakness of the US dollar.
“With developed markets debt problems brought sharply into focus by S&P's downgrade of the outlook for US paper, fresh speculation that Greece will be forced to default on its crushing debt burden, the debate in Japan over additional bond issues to finance reconstruction, investors gravitated toward emerging markets assets,” the report said.
India figures not given
However, the EPFR did not disclose specific inflow figures for India-focused funds. According to information available with SEBI, foreign institutional investors (FIIs) infused $370 million into the Indian market during the period.
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