According to funds tracking company EPFR Global, India focused equity funds have witnessed an inflow of over $ 9.5 billion from worldwide investors in the first six months of the year. In the mean time China has seen a hefty outflow of $ 17 billion. All the emerging markets equity funds saw a pullout from investors during the first half of 2015, barring India and Russia.
The overseas investors pumped in $ 9.52 billion in equity funds focused on Indian market during January-June period of 2015. The main reasons behind the India focused equity funds are reform measures taken by the government such as
- Passage of bills related to insurance
- Coal allocation and mining
- Assurances in the Union Budget to revisit controversial issues like General Anti-Avoidance Rule.
At the country-wise level, equity funds focused on Korea witnessed a withdrawal of $ 3.31 billion in January-June period of 2015, Mexico ($ 1.36 billion), Africa ($ 179 million) and Emerging Europe ($ 821 million). Overall, emerging markets equity funds witnessed an outflow of $ 21 billion during the first half of the year.
What is meant by Equity Fund?
Equity Fund is simply a mutual fund that invests principally in stocks. It can be actively or passively (index fund) managed. Also known as a “stock Fund”. An equity fund is a type of mutual fund or private investment fund that buys ownership in businesses.
