China’s cooling economy and stock-market turmoil have battered interest in emerging market shares. But India, while suffering big fund outflows last month, remains favored by many global investors in an increasingly weak emerging world.

"The choices aren't great really outside of India," said Prashant Kothari, senior investment manager of Pictet Asset Management, which has $160 billion in assets. He said that Pictet's emerging market funds trimmed their allocation to India last year, but are holding on to their remaining India investments for now.