Active Funds Defy Market Volatility: India-Focused Offshore Inflows Surge

Despite market uncertainty and an earnings slowdown, India-focused actively managed offshore funds attracted net inflows of $4.6 billion in the second half of 2024. This contrasts with ETFs, which saw net outflows of $716 million. The total asset base of India-focused offshore funds and ETFs grew slightly to $103.4 billion by December 2024, with actively managed funds accounting for $74.7 billion. Invesco India Equity C $USD AD led inflows with approximately $1 billion. This trend suggests foreign investors are favoring active management in volatile conditions, potentially viewing it as a safer bet despite higher fees.

 

Sources: Moneycontrol, Morningstar Offshore Fund Spy Report