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Largest outflow from US Largecap funds in CY25. India-Focused funds break 2-month inflow streak

* US domestic fund outflows intensified this week, rising to a five-week high of $10bn, marking outflows in 10 of the last 12 weeks, and totalling $40.8bn since mid-March. In contrast, foreign investors remain net buyers in US markets, contributing an additional $1.3bn this week. A clear divergence is emerging in the trend of domestic vs. foreign flows following the Trump tariff-related volatility.

* Notably, 38% of foreign inflows into the US since Ap’25 have originated from Japan-domiciled funds ($9.5bn), followed by Ireland (32%, $7.8bn) and Canada (19%, $4.6bn). These three geographies have played a key role in cushioning the impact of continued domestic redemptions.

* US large cap funds witnessed their largest weekly outflow of 2025, amounting $9.7bn. This also marks the first three-week streak of large cap fund redemptions since Aug’23. The longer-term trend in US flows is turning fragile for the first time since Feb’22 — a period that preceded a sharp eight-month correction in the US market led by large cap stocks.

* Emerging Markets (EMs) continue to attract foreign capital for the eighth consecutive week, with the most robust inflows seen in S.Korea ($704mn) and Brazil ($239mn).

* India, however, saw a moderation in flows to $73mn after receiving $388mn over the previous two weeks. Importantly, India-focused funds recorded their first weekly redemption since April 9 (post-tariff announcement), amounting to a modest $44mn. While the outflow is not significant, it potentially signals a pause in the two-month positive flow trend that had added up to $1.6bn.

* Gold funds continued their strong rebound, recording $3.9bn in inflows this week. Last 3 weeks’ inflows of $12.4bn has nearly recovered all of the prior four weeks’ redemptions.

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