Offshore India funds face $3.7B pullout in 2025
Foreign investors have pulled $3.65 billion from offshore India-focused funds by September 2025, flipping last year's record $23.4 billion inflow on its head.
That's nearly a $27 billion swing in just one year—a clear sign that global sentiment has shifted.
Active funds hit harder than ETFs
Active India funds took the biggest hit, losing $3.7 billion and seeing their assets drop 9% to $68 billion since December 2024.
Meanwhile, exchange-traded funds (ETFs) saw much smaller outflows—just $271 million—with assets slipping only 3% to $28 billion.
ETFs show resilience despite volatility
Even with market ups and downs, ETFs attracted $1.6 billion in new money during the June quarter thanks to lower fees and easy trading.
The Franklin FTSE India ETF led six-month inflows with $633 million, while iShares MSCI India ETF stayed the largest at $9.1 billion—showing that some investors still see opportunity, even when others are pulling back.