The attraction of Indian stock market is continuously increasing in the mutual fund industry. The data of fund flow in the global mutual fund industry points towards this. Statistics show that last year India Dedicated Fund received huge investments.
Inflow came into these funds throughout the year
According to EPFR data compiled by Kotak Institutional Equities, India Dedicated Funds received massive inflows of $16.2 billion last year. Before that there was an outflow of $2.2 billion in 2022. Last month also in December, these funds received inflow of $3.1 billion.
Managed assets increased by 67 percent
According to EPFR data, the assets of these funds have also increased significantly due to the huge inflows last year. Now the number of assets managed by these funds has reached $67 billion, which is 67.5 percent more than a year ago.
This much outflow from other funds in 2023
Inflows into India Dedicated Fund have increased at a time when GeM funds and other funds have faced outflows. $0.24 billion was withdrawn from GeM funds in December 2023 and $0.0009 billion was withdrawn in the entire year. In other funds, a further total of $0.79 billion was raised in December. year 2023 Outflows of $2.58 billion were recorded.
Investors prefer active management
According to the data, out of the inflows received by India Dedicated Fund in December, $2 billion came in ETFs i.e. exchange traded funds, while $1.1 billion was non-ETF inflows. India dedicated funds have high expense ratios and are actively managed. The inflows they are receiving show that most of the foreign investors investing in India are preferring active management, even if the expense ratio is high.
Outflow from these major markets in December
Talking about other markets, outflows were seen from markets like South Korea, Indonesia and Taiwan in the month of December. In December 2023, there was an outflow of $3 billion from South Korea, $262 million from Indonesia and $76 million from Taiwan. China received inflow of $10.8 billion and Brazil received inflow of $186 million.
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