In comparison, these funds pulled out $2.25 billion in January-June period of 2016.
The funds are looking at India from a long-term perspective as indicated by numbers. However, this trend may reverse going forward if the expectation of the managers on the economic growth front are not met, Himanshu Srivastava, Senior Analyst Manager Research at Morningstar India, said.
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According to the report, India-focused offshore funds invested $3.8 billion in the first six months of the current year, while that of ETFs witnessed an infusion of $983 million, taking the total to $4.8 billion.
Notably, half of the overall flow came in the months of March and April.
On a positive note, the money largely came into offshore funds which signify long-term money as against offshore ETF, where the money is largely short-term.
An offshore India fund is one that is not domiciled in the country but invests primarily in its markets.
The report noted that portfolio of India focused offshore funds and ETF shows an affinity towards those areas which stands to benefit from the fall in interest rates, turn around in economic cycle and uptick in urban consumption demand.
"Financial services, consumer cyclical particularly auto and its ancillary and basic material sectors such as cement and metals are the top sectors, wherein such funds are investing," Srivastava added.
On the other hand, the funds are reducing exposure to technology, pharma and communication sector due to the ongoing concerns and uncertainty in these sectors, he added.