July 14 (Reuters) - Emerging market equity funds are outpacing developed market rivals in attracting inflows for the first time in three years, underscoring a relatively more favourable growth outlook and expectations of faster rate cuts in many less developed markets.
Refinitiv Lipper data shows money inflows into emerging market (EM) equity funds hit $30.55 billion in the first half of the year, compared with outflows of $88.65 billion from developed market equity funds.
Data from the Institute of International Finance on Thursday also showed foreigners injected a staggering $22 billion net into emerging market portfolios in June, marking the highest influx since January.
read moreThe case for emerging markets, analysts say, is they were ahead of developed markets in tightening monetary policy and are now beginning to reap the rewards of falling inflation, lower borrowing costs and improved growth.
An over-leveraged real estate sector impedes growth," said Derek Izuel, chief investment officer and portfolio manager of the Shelton Emerging Markets Fund.
Persons:
World's, Malcolm Dorson, Li Qiang, Derek Izuel, Patturaja, Vidya Ranganathan, Conor Humphries
Organizations:
Institute of International Finance, U.S . Fed, European Central Bank, Reuters Graphics, Reuters, Global, Shelton, Markets Fund, Thomson
Locations:
Hungary's, Europe, U.S, China