NEW DELHI: Global investors have pulled out a whopping over 480 million dollars from India-focused funds last month, with as much as 120 million dollars flowing out in the last week, amid the meltdown in the equity markets. India-focused funds have witnessed the highest outflows among all the Asian funds in the last four weeks, followed by China funds, which saw redemptions of over 286 million dollars, as per data compiled by global fund tracking firm EPFR.

India-focused country funds saw an outflow of 119.7 million dollars in the last week of October, while for the past four weeks the toll has been as much as 482.2 million dollars, according to the data.

However, so far this year, the total redemptions from India-dedicated funds have been the second highest, of over two billion dollars, while China-focused funds have witnessed the highest outflows of 2.8 billion dollars in 2008 so far.

The Indian benchmark index Sensex dropped over 3,000 points from over 13,000 to below 10,000 in October, while China’s Shanghai SE Composite Index had fallen from over 2,100 to below 1,700 in the last month.

Asian equity funds excluding Japan extended their losing streak to the eighth week in a row and recorded net outflows of USD one billion in October. In the last week of October they suffered an outflow of over 386 million dollars.

“Risk aversion and fears of softer US demand dominated hopes of developed market rate cuts during late October, with trade-dependent Asian markets being hit particularly hard,” the EPFR report stated.

source: Economictimes

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