Asia equity funds attract $1.56 bn; India corners $211 mn

New Delhi, Aug 3 (PTI) With an increased risk appetite,
global investors poured in over USD one billion in equity
funds focused on the Asian economies in the fourth week of
July and India alone received USD 211 million.

With the Indian equity market touching a 13-month high
level last week, flows into India Equity Funds hit a
Year-To-Date (YTD) high of USD 211 million, according to the
data complied by international fund-tracking firm EPFR Global.

"Against a backdrop of rising risk appetite and key
equity markets at 6-10 month highs, Asia, excluding-Japan,
Equity Funds funds absorbed USD 1.56 billion," EPFR said.

Besides, China and Greater China Equity Funds between
them absorbed USD 711 million and both Russia and Brazil
Equity Funds posted inflows in excess of USD 100 million.

The BRICs (Brazil, Russia, India and China) theme
continued to resonate with investors with equity funds
dedicated to the region receiving new money for a 19th
straight week.

With investment in BRIC stocks climbing to more then USD
one billion in the fourth week of July, EPFR noted that "funds
investing in BRICs markets continue to be money magnets."

Overall inflows into emerging market equity funds
rebounded during the fourth week of July as earnings season
sustained investor hopes, and optimism about Chinese property
demand and increased domestic consumption helped many
individual equity markets gain between 6 and 10 per cent.

The diversified Global Emerging Markets equity funds
received USD 905 million, taking the YTD figure over the USD
16 billion mark, while EMEA (Europe, Middle East and Africa)
and Latin America Equity Funds took in USD 229 million and USD
208 million respectively during the week, the report added.

Global Equity Funds took in a net USD 821 million while
Pacific Equity Funds absorbed another USD 98 million which
took YTD inflows past USD one billion, it said.

Investors funneled USD 722 million into the EPFR
global-tracked financial sector funds, followed by technology
(USD 323 million), consumer goods (USD 186 million) and real
estate sector funds (USD 150 million).

"Signs of light in the US housing market allowed
investors to project increased consumption by US consumers in
the months ahead and trim expectations of property-related
writedowns by lenders," the report said.

Investors responded to a slew of better-than-expected
earnings and macro-economic data in late July by pumping fresh
money into a broad range of asset classes, the report said,
adding that the US focused funds snapped its six week outflow
streak as this fund group enjoyed its biggest weekly inflow
since mid-December. PTI JD
AM
NNNN