Morningstar reports India-focused offshore funds saw $4.7 billion in outflows in the June 2026 quarter, even as a strong stock market rally lifted assets under management to $80.2 billion. India-focused offshore funds and ETFs recorded net outflows of $4.7 billion in the quarter ended June 2026, slightly better than the $5.0 billion seen in the March quarter. Wider global funds still trimming India exposureMorningstar also tracked Indian allocations inside broader global, emerging-market and Asia-Pacific strategies. The increase was led by global funds and emerging-market funds, while Asia/Asia-Pacific funds saw a sharp decline in India allocation. Still, the continued outflows from offshore funds and the net selling by broader global strategies show that foreign investors remain cautious heading into the next quarter.