AI rally reroutes India fund flows to South Korea Taiwan
Business
India-focused equity funds just lost the edge they've held over global emerging markets for the past five years.
Elara Securities says performance is back to April 2021 levels, erasing gains from strong earnings and local investment.
Turns out, an AI-driven rally is pulling global money toward South Korea, Taiwan, and commodity-heavy markets instead.
South Korea sees $4.8B foreign inflows
South Korea saw a huge $4.8 billion in foreign inflows as its AI-driven rally held through pullbacks since May 2025.
GEM funds also snapped up $1.8 billion last week after 10 weeks of big outflows.
Meanwhile, India had $95 million in outflows, much less than its usual weekly average of $400 million, and valuations compared to South Korea dropped to lows not seen since the mid-1990s and early 2000s.