{"id":5372,"date":"2025-03-17T15:06:39","date_gmt":"2025-03-17T09:36:39","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=5372"},"modified":"2025-03-17T15:06:39","modified_gmt":"2025-03-17T09:36:39","slug":"india-dedicated-funds-face-continued-outflows","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/india-dedicated-funds-face-continued-outflows\/","title":{"rendered":"India-Dedicated Funds Face Continued Outflows Amid Global Emerging Market Rebound"},"content":{"rendered":"<h3 data-start=\"91\" data-end=\"187\">Foreign Investors Shift Focus to Other Emerging Markets, Despite Slower India Outflows<\/h3>\n<p data-start=\"189\" data-end=\"534\">India-focused investment funds continue to witness persistent capital outflows, even as fund flows into key Global Emerging Markets (GEMs) turn positive. Despite a modest slowdown in redemptions, India remains an outlier in the broader emerging market rally, with global investors favoring other economies over Indian equities.<\/p>\n<p data-start=\"536\" data-end=\"902\">According to Elara Capital\u2019s Global Liquidity Tracker (March 7, 2025), India-dedicated funds saw $270 million in outflows this week, following withdrawals of $370 million and $425 million in the previous two weeks. Since October 2024, these funds have registered cumulative outflows of $4 billion, with $3.2 billion withdrawn in 2025 alone.<\/p>\n<h3 data-start=\"904\" data-end=\"993\">US-Based India Funds See Slower Outflows, but Europe and Japan Continue Selling<\/h3>\n<p data-start=\"995\" data-end=\"1240\">While redemptions from U.S.-domiciled India funds have eased significantly\u2014with just $15 million exiting this week, the lowest level since January 2025\u2014European and Japanese investors continue to reduce exposure to Indian equities.<\/p>\n<ul data-start=\"1242\" data-end=\"1512\">\n<li data-start=\"1242\" data-end=\"1328\">Luxembourg-based funds led outflows, with $86 million withdrawn this week.<\/li>\n<li data-start=\"1329\" data-end=\"1392\">Ireland-based funds saw $59 million in redemptions.<\/li>\n<li data-start=\"1393\" data-end=\"1447\">UK funds recorded $49 million in outflows.<\/li>\n<li data-start=\"1448\" data-end=\"1512\">Japanese funds witnessed $32 million in withdrawals.<\/li>\n<\/ul>\n<p data-start=\"1514\" data-end=\"1688\">Foreign investors remain cautious about India\u2019s relatively expensive valuations compared to other emerging markets, limiting fresh capital inflows into Indian equities.<\/p>\n<h3 data-start=\"1690\" data-end=\"1757\">Global Emerging Market Funds See Renewed Foreign Interest<\/h3>\n<p data-start=\"1759\" data-end=\"1948\">While India grapples with outflows, global investors have been reallocating capital to other emerging markets, benefiting from recent corrections in U.S. and European markets.<\/p>\n<ul data-start=\"1950\" data-end=\"2622\">\n<li data-start=\"1950\" data-end=\"2077\">U.S. equity funds recorded a five-week high in inflows at $7.9 billion, up from $5.1 billion the previous week.<\/li>\n<li data-start=\"2078\" data-end=\"2268\">European equity funds continued their strong streak of inflows for the third consecutive month, with $4 billion in inflows this week and $12 billion over the past four weeks.<\/li>\n<li data-start=\"2269\" data-end=\"2365\">Hong Kong funds saw a record $1.6 billion in foreign inflows, the highest on record.<\/li>\n<li data-start=\"2366\" data-end=\"2456\">China funds registered their strongest inflows in five months at $926 million.<\/li>\n<li data-start=\"2457\" data-end=\"2622\">South Korea, Taiwan, Brazil, Mexico, Indonesia, Thailand, Singapore, and Malaysia have all experienced a return of foreign capital over the past three weeks.<\/li>\n<\/ul>\n<h3 data-start=\"2624\" data-end=\"2700\">India Remains the Only Major Emerging Market Still Facing Outflows<\/h3>\n<p data-start=\"2702\" data-end=\"3018\">Despite a moderation in India\u2019s outflows, the country remains the only major emerging market still experiencing sustained capital flight. Outflows from Indian equities slowed to $113 million this week, significantly lower than the average weekly outflow of $460 million since the beginning of 2025.<\/p>\n<p data-start=\"3020\" data-end=\"3294\">India\u2019s high valuations relative to global peers remain a key challenge in attracting new foreign investment. While other emerging markets benefit from renewed global risk appetite, India continues to lag behind, struggling to regain sustained inflows.<\/p>\n<p data-start=\"3296\" data-end=\"3503\" data-is-last-node=\"\" data-is-only-node=\"\">As global investors reposition their portfolios, India\u2019s ability to attract foreign capital will likely depend on valuation adjustments, earnings growth, and macroeconomic stability in the coming months.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Foreign Investors Shift Focus to Other Emerging Markets, Despite Slower India Outflows India-focused investment funds continue to witness persistent capital outflows, even as fund flows into key Global Emerging Markets (GEMs) turn positive. Despite a modest slowdown in redemptions, India remains an outlier in the broader emerging market rally, with global investors favoring other economies [&hellip;]<\/p>\n","protected":false},"author":4,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1362,615],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-5372","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-and-economy-news","8":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5372","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=5372"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5372\/revisions"}],"predecessor-version":[{"id":5374,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/5372\/revisions\/5374"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/5373"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=5372"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=5372"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=5372"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=5372"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}