Investors pull out $365 mn from Asia funds

India-focused funds saw net inflows of $52 million even as global investors pulled out over $365 million from Asia-dedicated equity funds in the first week of July.

According to the data compiled by the international fund- tracking firm, EPFR Global, all Asia -- excluding Japan -- equity funds surrendered $365 million in early July although they remain committed to investing in India and Russia.

"Fresh doubts about US appetite for emerging markets exports and global demand for raw materials prompted investors to pull some money off the table in early July," the EPFR report said.

At the country level, investors removed $424 million from China Equity Funds and $244 million from Brazil Equity Funds. But they committed modest sums to Russia Equity Funds despite the pressure on oil prices and reacted to the general disappointment voiced about India's latest budget by steering $52 million into India Equity Funds, it added.

Besides, funds geared on all four of the BRICs (Brazil, Russia, India and China) and invested for the 16th consecutive week. So far this year, the net investment by funds focused on the combined BRIC region stood at $2 billion.

Among the other emerging markets, Latin America and Europe, Middle East and Africa equity funds posted inflows for to the tune of $1 million.