Results of 2024-25 round of survey of Foreign Liabilities and Assets of the Mutual Funds (MFs)
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Today, the Reserve Bank of India (RBI) has released the results of the 2024-25 round of the survey of Foreign Liabilities and Assets of the Mutual Funds (MFs).
The survey covered 45 Indian MFs and their Asset Management Companies (AMCs), which held/acquired foreign assets/ liabilities during 2024-25 and/or in the preceding years. The information on face value and market value of units held by non-residents, unit premium reserve, other foreign liabilities and assets of MFs as at end of the financial year were collected under the survey. The external assets and liabilities of their AMCs were taken from the annual census on foreign liabilities and assets (FLA) of direct investment companies for the reference period 2024-25.
Highlights:
I. Mutual Funds (MFs):
- Foreign liabilities of MFs increased by 19.9 per cent during 2024-25 to US$ 30.5 billion (at market value) in March 2025, due to the rise in units issued to non-residents.
- Overseas assets of MFs declined by 5.6 per cent and stood at US$ 8.3 billion in March 2025, due to lower holdings of foreign equity securities.
- As a result, the net foreign liabilities of MFs increased to US$ 22.2 billion in March 2025 from US$ 16.6 billion a year ago.
- Non-residents of United Arab Emirates (UAE), the United States of America (USA), the United Kingdom (UK) and Singapore held the largest share in MF units, both in terms of face value as well as at market value.
- Over 95 per cent of the overseas equity investment of the MFs were concentrated in the USA, Luxembourg, and Ireland.
II. Asset Management Companies (AMCs):
- Foreign liabilities of AMCs increased by 16.8 per cent and stood at US$ 7.5 billion in March 2025, on the back of higher inward direct investments.
- Residents in Japan, Canada and the UK together accounted for over 83 per cent of FDI among Indian AMCs.
- The overseas assets of AMCs increased marginally from their previous year’s level and were largely held in Guernsey, Singapore and Mauritius.