According to global financial major Bank of America-Merrill Lynch report, global investors have reduced their exposure to emerging market equities due to weak earnings prospects, weak Chinese economic growth and a strong dollar. India topped the global emerging market investors’ country preference chart followed by China and Poland in the second and third place, respectively. The report states Asia Pacific investors have increased their allocations to India and Taiwan in June.

Foreign investors pulled out more than Rs 3,300 crore from Indian stock markets so far this month, mainly on account of better returns from Asian peers, concerns over a slow revival in corporate earnings and continued worries over taxation issues.

Other countries in the list included, Turkey, Indonesia, Mexico, Korea, Thailand and South Africa. Investors have also shown concern about a Greek default and a possible bubble in Chinese equities as they have scaled back risk.