The Reserve Bank of India (RBI) has released the results of its 2025-26 survey on the foreign liabilities and assets of Mutual Funds (MFs).
The survey covered 53 Indian Mutual Funds and their Asset Management Companies (AMCs). These MFs had foreign assets or liabilities during 2025-26 or in earlier years.
The survey collected information on the face value and market value of MF units held by non-residents, unit premium reserves, and other foreign liabilities and assets of MFs as of the end of the financial year. The foreign assets and liabilities of the AMCs were taken from the annual survey on Foreign Liabilities and Assets (FLA) for 2025-26.
Mutual Funds
Foreign liabilities of Mutual Funds increased by 3.3% year-on-year to US$31.5 billion at the end of March 2026. The main reason was the increase in the market value of MF units held by non-residents.
Overseas assets of Mutual Funds increased by 23.9% to US$10.2 billion at the end of March 2026. This increase was mainly due to higher investments in foreign equity securities.
As a result, the net foreign liabilities of Mutual Funds declined to US$21.3 billion at the end of March 2026, compared with US$22.3 billion a year earlier.
The United Arab Emirates, the United States, the United Kingdom and Singapore were the top destinations for MF units held by non-residents. Together, these four countries accounted for around 50% of the total MF units held by non-residents, both in terms of face value and market value.
Mutual Funds’ investments in overseas equity securities increased by 37.5% at the end of March 2026 compared with the previous year. These investments were mainly held in the United States, Luxembourg and Ireland.
Asset Management Companies
Foreign liabilities of Asset Management Companies increased by 18.1% year-on-year to US$8.7 billion at the end of March 2026. The increase was mainly due to higher foreign direct investment and portfolio investment in AMCs.
Japan and Canada together accounted for around 80% of the total foreign direct investment in AMCs as of March 2026.
The RBI data shows that Indian Mutual Funds increased their investments in foreign assets during 2025-26, especially in foreign equity securities. At the same time, the foreign liabilities of MFs also increased, but their net foreign liabilities declined from US$22.3 billion to US$21.3 billion.
For Asset Management Companies, foreign liabilities increased by 18.1%, with Japan and Canada being the major sources of foreign direct investment.
Mutual Funds – Foreign Liabilities and Assets
Foreign Liabilities of Mutual Funds at Face Value in Various Countries
Foreign Liabilities of Mutual Funds at Market Value in Various Countries
Equity held by Mutual Funds at Market Value
Foreign Liabilities and Assets of AMCs
FDI in AMCs
Overseas Direct Investment by AMCs
