India-focused fund flows are showing early signs of stabilization, with global industrials experiencing their first momentum break since AI trade began in May 2025, as per a recent report. Redemptions have paused after $8.6 billion outflows since February, with net inflows remaining modest at $17 million. India-focused ETFs saw a recovery with a $118 million increase, while active long-only funds continued to witness outflows of $101 million.
Global Industrial funds have recorded negative rolling four-week flows for the first time since AI trade began last year in May. Technology funds are still attracting the strongest inflows, indicating investor preference for direct AI beneficiaries over the broader AI supply chain. Gold funds saw their largest weekly inflow since mid-April, while Silver fund flows are stabilizing after months of heavy redemptions.
Consumption funds have been significantly impacted in this round of AI investments, experiencing consistent outflows since November 2025, although the pace of redemptions has eased in recent weeks. With the Emerging Market (EM) Index correcting by 10% from its peak, investors are beginning to selectively buy the dip. GEM funds attracted $1.9 billion this week, following a $1.8 billion inflow in the previous week, reversing 28% of the $13 billion redeemed over the preceding ten weeks.
US equity funds saw another modest outflow of $6 billion, marking the third week of redemptions in the last five weeks, indicating a moderation in the exceptional inflow momentum into US equities following the SpaceX listing. While foreign fund flows into Taiwan and South Korea are cooling, domestic investors in Taiwan remain aggressive buyers of the correction, with domestic funds recording their second-largest weekly inflow at $4.8 billion.
