India-focused funds have a great week after elections

Emerging market equity funds soaked up another $2.46 billion (Dh9bn) during the third week of May as India's lengthy election produced the result investors were hoping for, Chinese officials reiterated their determination to lift GDP growth to at least eight per cent and commodity prices rallied, according to data released by EPFR Global.

EM and high-yield bond funds also extended their recent winning runs. "Investors worldwide are clearly anxious to put their money back to work," said EPFR Managing Director Brad Durham. "They took another $21bn pulled out of the money market funds we track during the past week, which provide a degree of safety but minimal returns, and brings the year to date total outflows to $78.2bn."

The $26.3bn that investors pulled from money market funds on May 15 was the third largest daily outflow total this year from these funds, and the third largest since at least the beginning of 2008.

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