Why did India-focused offshore funds lose nearly $5 bn in Q1 2026?

India-focused offshore funds and ETFs witnessed nearly $5 billion in outflows in Q1 2026, highlighting growing caution among global investors toward Indian equities. Geopolitical tensions, FII selling, elevated valuations and market correction emerged as major drivers behind the sharp withdrawal.

May 19, 2026 - 19:00
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Why did India-focused offshore funds lose nearly $5 bn in Q1 2026?
India-focused offshore funds and ETFs witnessed nearly $5 billion in outflows in Q1 2026, highlighting growing caution among global investors toward Indian equities. Geopolitical tensions, FII selling, elevated valuations and market correction emerged as major drivers behind the sharp withdrawal.

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