After seeing an outflow for 37 months, India-focused offshore equity funds (IOEF)—a prominent vehicle for long term foreign investors—saw net inflows in March 2021, per a Morningstar report. In March 2021, IOEF had net inflows of $33.22 million. Foreign money gets invested in Indian market either via actively managed funds like IOEF or India-focused ETFs. What happened? Although foreign money is watchful of how India manages its COVID-19 surge, Indian equities remain attractive along with other emerging markets given high growth expectation and dollar weakness. How India brings back growth will also influence flows. About 77% of foreigners invest in India via actively managed funds and 22% via ETFs.