Investors are interested in getting back into emerging markets, Cameron Brandt, Director Research, EPFR Global said in an interview with CNBC-TV18.
Brandt said China continued to be a leading destination for investors looking to put money in emerging markets.
Brandt sees huge appetite for emerging markets for the rest of the year, and said there was less money going into gold funds at this point.
A combination of factors had led to a sell off in emerging markets recently, most notably the strengthening of the dollar. With the outlook on the US economy improving, investors started shifting a part of their investments into the dollar. This caused the dollar to strengthen, and the resulting weakness trigger a self-fulfilling prophecy of weaker emerging market currencies and foreign fund outflows.