Global investors have pulled out a whopping over $480 million from India-focused funds last month, with as much as $120 million 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, as per data compiled by global fund tracking firm EPFR.
India-focused country funds saw an outflow of $119.7 million in the last week of October, while for the past four weeks the toll has been as much as 482.2 million, according to the data.
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 $1 billion in October.
In the last week of October they suffered an outflow of over $386 million.
"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.
Besides, Latin America and EMEA Equity Funds saw outflows for 21 and 12 straight weeks, respectively.
However, diversified Global Emerging Markets Equity Funds absorbed a net $337 million in the last week of October.
Funds dedicated to the Brazil, Russia, India and China region also witnessed redemption with all three markets -- Russia, India and China -- posting outflows.
However, Brazil equity funds recorded a rare week of inflows.
Overall, all the equity and bond funds tracked weekly by EPFR saw outflows of $52 billion and lost more than $700 billion in total assets due to the combined effects of sinking markets and investor outflows.