Document title, issuing authority, reference number, and date

Survey of Foreign Liabilities and Assets of Mutual Funds – 2025-26

Reserve Bank of India

Press Release: 2026-2027/998

Date: 31 August 2026

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External Sector and Currency

The Reserve Bank’s survey covered 53 Indian mutual funds (MFs) and their Asset Management Companies (AMCs) that held foreign assets or liabilities during FY 2025‑26. At end‑March 2026, the market‑value foreign liabilities of MFs stood at ₹ 2,98,200 crore (US$ 31,504 million), a 3.3 % year‑on‑year increase, primarily due to a rise in the market value of units issued to non‑residents (₹ 2,97,530 crore, US$ 31,433 million). Other foreign liabilities amounted to ₹ 670 crore (US$ 71 million).\

Overseas assets of MFs grew 23.9 % to ₹ 96,294 crore (US$ 10,173 million), of which equity securities were ₹ 93,602 crore (US$ 9,889 million), reflecting a 37.5 % increase in equity holdings. Other foreign assets were ₹ 2,692 crore (US$ 284 million). Consequently, net foreign liabilities fell to ₹ 2,01,906 crore (US$ 21,331 million) from the previous year’s ₹ 1,90,805 crore.\

Units issued at face value to non‑residents rose to ₹ 73,471 crore (US$ 7,762 million), up from ₹ 63,127 crore a year earlier.\

Country‑wise distribution (MF units at face value)

  • United Arab Emirates: ₹ 61,299 crore (US$ 7,762 million), 20.6 % share, +16.7 % YoY\
  • United States of America: ₹ 35,502 crore, 11.9 % share, +11.3 % YoY\
  • United Kingdom: ₹ 28,886 crore, 9.7 % share, +17.2 % YoY\
  • Singapore: ₹ 21,468 crore, 7.2 % share, +10.0 % YoY\

These four economies together account for roughly half of the total MF units held by non‑residents, both in face‑value and market‑value terms.\

Equity securities held abroad (MFs)

  • United States of America: ₹ 59,403 crore (63.5 % of MF equity abroad), up 36.5 % YoY\
  • Luxembourg: ₹ 18,948 crore (20.2 % share), up 39.0 % YoY\
  • Ireland: ₹ 10,003 crore (10.7 % share), up 31.6 % YoY\

Other jurisdictions (Hong Kong, Canada, China, UK, Japan, Singapore, South Korea, others) together made up the remaining 5.8 % of equity holdings.\

Capital Markets and Flows

Asset Management Companies (AMCs)

The foreign liabilities of AMCs increased 18.1 % YoY to ₹ 56,201 crore (US$ 8.7 bn) as of end‑March 2026. The rise was driven mainly by higher inward direct investment and portfolio investment.\

Country‑wise FDI in AMCs (2026 provisional)
  • Japan: ₹ 36,920 crore, 65.7 % share, +38.5 % YoY\
  • Canada: ₹ 7,592 crore, 13.5 % share, +38.0 % YoY\
  • Mauritius: ₹ 3,325 crore, 5.9 % share, +31.3 % YoY\
  • United Kingdom: ₹ 2,733 crore, 4.9 % share, –11.2 % YoY\
  • France: ₹ 2,144 crore, 3.8 % share, –28.9 % YoY\
  • Netherlands: ₹ 1,603 crore, 2.9 % share, +445.2 % YoY\
  • Singapore: ₹ 1,357 crore, 2.4 % share, +26.6 % YoY\
  • Hong Kong: ₹ 297 crore, 0.5 % share, –37.5 % YoY\
  • United States of America: ₹ 230 crore, 0.4 % share, –4.6 % YoY\

Total foreign liabilities of AMCs amounted to ₹ 56,201 crore, a 31.1 % increase in absolute terms (₹ 13,327 crore).\

Overseas Direct Investment by AMCs (2026 provisional)
  • Guernsey: ₹ 680 crore, 75.0 % share, –6.8 % YoY\
  • Singapore: ₹ 203 crore, 22.4 % share, +10.9 % YoY\
  • Mauritius: ₹ 13 crore, 1.4 % share, +8.3 % YoY\
  • United Arab Emirates: ₹ 11 crore, 1.2 % share, +10.0 % YoY\

Total direct overseas investment by AMCs stood at ₹ 907 crore, a 3.0 % decline from the previous year.\

Concluding observations

The RBI’s 2025‑26 survey shows a modest rise in mutual‑fund foreign liabilities but a pronounced expansion in overseas assets, especially equity holdings, indicating greater international exposure. Asset Management Companies experienced a sharper increase in foreign liabilities, with Japan and Canada dominating the FDI profile. The concentration of MF units with non‑resident investors in a few key jurisdictions (UAE, USA, UK, Singapore) underscores the importance of these markets for India’s mutual‑fund sector.