Global investors pull $8.5 billion from India funds in 2026
In 2026, global investors pulled $8.5 billion out of India-focused funds, Elara Securities said.
The big reason? Money is flowing toward countries and sectors seen as winners in the AI boom: think South Korea, Taiwan, and especially the US.
Elara points out that India has become a source of cash for investors chasing these new tech opportunities.
Flows favor US South Korea, Taiwan
Over half of recent investments in India-focused funds have already been withdrawn, with Luxembourg- and Japan-based funds leading this year's exits.
Meanwhile, US stock markets are seeing record-breaking inflows, $120 billion in just one week, mostly into ETFs linked to major indexes like the S&P 500.
Other emerging markets are feeling this shift too: South Korea and Taiwan gained fresh investments while both India and China saw more money leave than come in.