Snapping three consecutive weeks of outflows, emerging market equity funds attracted about $820 million during the week ended June 1.
During the period, emerging market equity funds gained $820 million, first weekly inflow in three weeks, reducing the year-to-date outflow to $7.7 billion, according to the data complied by the international fund tracking firm EPFR.
Overall, equity funds dedicated to global fund saw inflows of $1.7 billion, which arrests a three-week investor exodus totalling $18 billion.
The report attributed inflows to expectations of continuing low interest rates in the US coupled with rate hike in emerging markets to combat inflation.
However, it states that return of flows to equity funds may be temporary as investors are still worried over Greece debt crisis.
The report said that in the coming weeks, inflows will depend on international crude oil prices and Japan’s recovery from the tsunami crisis.
According to information available with SEBI, foreign institutional investors (FIIs) have poured in $288 million in the Indian market during the week ended June 1.