Global Fund Flows Shift: India Sees Surge in Passive Strategies, EM Inflows Continue

• Global fund flows are consolidating across commodities, with India experiencing a significant shift from active to passive investment strategies, as per Elara Capital's Global Liquidity Tracker.
• Emerging market (EM) funds recorded $4.3 billion in inflows last week, contributing to a strong start for EM allocations this year.
• India-dedicated funds saw inflows for the third consecutive week, driven entirely by ETFs, while long-only active strategies faced redemptions.
• Approximately $835 million shifted from active to passive India strategies over the past five days, highlighting the growing preference for passive investments.
• Commodity flows are moderating, with silver funds seeing significant outflows and gold inflows pausing, indicating a consolidation phase after strong momentum.