The net cash raked in by developed market-focused funds was USD 49.44 billion in the January-June period of the year, compared to an outflow of USD 34.81 billion in the year-ago period, according to international fund tracking firm EPFR.
However, India dedicated funds remained alienated and witnessed redemptions of USD 1.38 billion in the first half of of 2011, compared to the outflow of USD 758 million in the year-ago period.
In the January-March quarter of 2011, investors withdrew USD 857 million from India-focused funds.
Market experts attributed outflows from India to high inflation prevailing in the country.
Consequently, investors parked funds in developed nations. US-focused equity funds took in USD 20.30 billion in the first half of 2011, while global equity funds attracted USD 23.85 billion, funds targeted at Western Europe pulled in USD 4.5 billion and Japan funds witnessed the inflow of USD 1.63 billion.
Overall, emerging market equity funds saw the net outflow of USD 11.72 billion in the period under review.
Analysts believe that investors are shifting money from emerging market equity funds to developed nations due to the ongoing struggle against inflation in many key markets.
The crisis in the Middle East, Greece debt problems and Japan's nuclear situation also drove investors out of emerging markets.
Three out of the four major categories of emerging market equity funds -- namely 'Asia ex-Japan', 'Latin America', 'Global Emerging Market' and 'Europe, Middle East and Africa' -- witnessed outflows in the first half of 2011.
The Asia ex-Japan category funds were the worst performer, seeing the outflow of USD 6.96 billion, followed by Latin America funds (USD 3.55 billion) and global emerging market (USD 2.38 billion).
In contrast, EMEA funds saw the inflow of USD 1.18 billion.
China and Brazil-focused funds also saw big outflows, with China-targeted funds seeing the pullout of USD 1.81 billion and USD 147 million withdrawn from funds aimed at Brazil.
On the other hand, Russia-focused funds took in USD 3.14 billion in the first six months of the year.
In terms of sectors, commodities was the best performer with inflows of USD 7.15 billion in the first six months of 2011, followed by real estate, with an intake of USD 6.43 billion, and the energy sector, with investors pumping in USD 5.41 billion.