Morgan Stanley has released its latest update on emerging market (EM) flows, shedding light on shifting weightages and strategic changes in global funds.
Key Highlights:
- Underweight adjustments:
- Morgan Stanley added underweights in both China and India during November 2024, reflecting caution in these markets.
- Despite this, portfolio weight and MSCI weight for India have shown a rising trend.
- Weightage increases for India:
- International and US fund weightage for India rose by 200 basis points (bps) to 21.9% in Q4CY24 (quarter-on-quarter).
- Changes in specific allocations:
- HDFC Bank: Reduction in overweight allocations, down 40 bps to 2.8% in Q4CY24.
- Tata Consultancy Services (TCS): Overweight allocations increased by 40 bps to 1%.
These changes indicate a recalibration of fund allocations, with India remaining a key focus for international portfolios, even as some adjustments are made in overweight positions.
Disclaimer: This content is for informational purposes only. Please consult a financial advisor before making investment decisions.
