Almost 60% of overseas inflows into India-focused funds withdrawn since 2024 peak: Report
The report mentioned India-focused funds attracted almost USD 20 billion between March 2023 and October 2024, however nearly USD 12 billion of these inflows have since been redeemed.
“Nearly 60% of inflows that India targeted funds noticed in 2023-24 interval has been pulled out. Redemptions have accelerated since Jan’26 to fund the AI commerce & momentum continues to stay weak,” the report mentioned.
In line with the report, buyers have withdrawn USD 9 billion from India-focused funds thus far in calendar yr 2026, together with USD 7 billion from long-only funds and USD 2 billion from exchange-traded funds (ETFs).
The report mentioned Luxembourg accounted for the most important share of redemptions at USD 3.5 billion, adopted by the USA at USD 2.4 billion and Japan at USD 2.1 billion, whereas Eire remained the one main fund domicile to largely keep away from the present spherical of promoting.
Elara Capital mentioned the shift in investor desire is being pushed by the worldwide AI funding theme, though shopping for has change into extra selective than in the course of the preliminary rally.
“The broader AI ecosystem commerce continues to lose momentum, though buyers stay selective inside the theme,” the report mentioned. It added that international rising market (GEM) funds, which had more and more change into a proxy for the AI value-chain commerce, proceed to witness outflows.
“The AI commerce is changing into concentrated in just a few direct beneficiaries somewhat than the broader ecosystem,” the report famous, including that overseas buyers have resumed shopping for devoted South Korea and Taiwan funds following the April-Might correction, albeit at a a lot slower tempo than in the course of the peak of the AI rally.
The report additionally highlighted enhancing investor sentiment in direction of another asset lessons.
Gold funds recorded a USD 317 million influx in the course of the week, marking the primary optimistic studying after almost USD 14 billion of outflows since April.
“Gold funds recorded a modest influx of $317mn, the primary optimistic studying after $14bn outflows since Apr, whereas stress on Silver funds has additionally eased over latest weeks,” the report mentioned.
In the meantime, US equities attracted USD 27 billion in contemporary inflows, reversing the withdrawals seen over the earlier two weeks, whereas Europe registered its first weekly influx in almost three months, the report added.
