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Fund flows in April 2024. Listed funds witnessed US$419 mn of inflows, led by ETF inflows of US$428 mn, which was offset by non-ETF outflows of US$8 mn. India-dedicated funds witnessed inflows of US$1.5 bn, broken down into US$679 mn of ETF inflows and US$837 mn of non-ETF inflows whereas GEM funds saw US$697 mn of outflows, broken down into US$240 mn of ETF outflows and US$456 mn of non-ETF outflows.

• Emerging market flows. Listed emerging market fund flows were negative for most countries. China, Brazil and South Korea witnessed US$1.3 bn, US$962 mn and US$378 mn of outflows whereas Taiwan and India saw US$2.1 bn and US$419 mn of inflows. Total FPI and EPFR activity showed divergent trends for India, South Korea, Taiwan and Thailand.
• Country allocations. Allocations to China and India constitute 42% of the average Asia ex-Japan fund portfolio. Asia ex-Japan funds’ allocations to India declined to 19.2% in April from 19.4% in March, whereas allocations to India by GEM funds increased to 18.8% in April from 18.3% in March. Allocations by Asia ex-Japan non-ETFs to India declined to 19.6% in April from 19.8% in March; allocations to India by GEM non-ETFs increased to 16.8% in April from 16.6% in March.

Product description and methodology. KIE’s foreign fund flow tracker gives a comprehensive view of the market flow by listed funds into India and its emerging market (EM) peers. These market participants are further classified based on their investment styles—passive (ETFs) or active (non-ETFs)—in an attempt to understand the intent and sentiments governing the flow. Please note that there is a difference between EPFR-reported fund flows and FPI flows reported by NSDL. EPFR fund flow data primarily tracks mutual funds, ETFs, closed-end funds and variable annuity funds/insurance-linked funds, whereas NSDL-reported FPI flows also capture investments from hedge funds, proprietary desks and sovereign wealth funds.

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