Global flows rotate out of India as country funds witness 10th straight week of redemptions

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Global investors continued to pare exposure to India even as broader emerging-market flows strengthened, with India-focused equity funds recording their 10th straight week of redemptions, according to Elara Securities’ Global Liquidity Tracker for the week ended November 14.

India-focused funds saw $230 million in outflows, while modest inflows of $68 million into India came entirely from Global Emerging Market (GEM) funds. Elara noted that GEM managers have been rotating out of India and into China since August 2024 — a trend that has deepened through 2025.

As of end-September 2025, India’s weight in GEM portfolios has dropped to a two-year low of 16.7%, while China’s allocation has climbed to an 18-month high of 28.8%, reflecting the sharpest shift in regional positioning in nearly two years.

Flows into North Asia remained strong, with South Korea clocking its highest weekly inflows since February 2021 and Taiwan seeing its best since June 2025. China, too, continued to attract steady buying.

Global equity funds logged their ninth consecutive week of net inflows, though the pace moderated to $18.3 billion, down from a two-month high of $39.4 billion the previous week.

In commodities, physical commodity funds saw a revival with $3 billion in inflows, while precious metal funds posted a sharp rebound with $5.5 billion. Silver funds were the key contributors, helping precious metals outperform world equities by 60% on a one-year rolling basis — their strongest relative performance since October 2009.

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