While India is seeing steady redemptions, US equity flows remain firm, with no signs of fatigue despite the recent rally. In the last four weeks, foreign investors have pumped in $33 billion, while domestic funds added another $17 billion. Elara, however, noted that the long-term momentum has been gradually moderating since the Trump tariff announcement in April 2025.
Foreign investors kept pulling money out of India funds even as domestic benchmarks scaled new highs. According to Elara Capital’s Global Liquidity Tracker for the week ended October 24, India-focused funds saw their seventh straight week of redemptions, with outflows of $175 million, easing from $382 million in the previous week — the highest in two months.
The report noted that selling was led by large-cap long-only funds, while ETFs saw flat flows. Midcap and smallcap funds continued to bleed, with $120 million and $100 million in withdrawals over the past seven weeks. Japan-domiciled India funds also stayed under pressure, marking 14 consecutive weeks of outflows worth $740 million.
While India is seeing steady redemptions, US equity flows remain firm, with no signs of fatigue despite the recent rally. In the last four weeks, foreign investors have pumped in $33 billion, while domestic funds added another $17 billion. Elara, however, noted that the long-term momentum has been gradually moderating since the Trump tariff announcement in April 2025.
The report pointed out that overall equity inflows are still positive globally, but the pace has slowed in markets such as India, Indonesia, South Africa and Argentina, even as China, Hong Kong, Brazil, Mexico and parts of Europe see stronger momentum.
Gold and commodities are where investors are clearly crowding in. Precious metal funds drew a record $19.6 billion in a single week, helped by renewed buying after a correction in prices. Despite a sharp rally earlier this year, investors continue to add exposure, suggesting gold remains a preferred safety trade.
Commodity equity funds have also made a comeback. Flows have surged $18.5 billion since August, the fastest pace since 2020. Elara said the pickup could mark a structural turn in the global commodity cycle, with prices hovering near long-term resistance levels.
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