

India-focused funds are experiencing significant outflows, with $1.8 billion redeemed recently, marking the highest since January 2025. This shift comes as China and Hong Kong attract substantial inflows, reversing the trend seen earlier in 2024. Major withdrawals are primarily from ETFs and active funds, putting pressure on large-cap Indian stocks. The report highlights that among emerging markets, India's fund flows are the weakest. While global high-yield bond funds continue to see inflows, the pace has slowed. Investors are advised to stay vigilant and consult experts before making decisions.