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

The Reserve Bank of India unveiled the findings from the 2025-26 survey assessing the foreign liabilities and assets of mutual funds (MFs) in a recent report. The survey encompassed 53 Indian MFs and their associated asset management companies (AMCs), analyzing their foreign holdings and obligations during the fiscal year, as well as preceding years.

The study collected data on face value and market value of units held by non-residents, unit premium reserve, and other foreign liabilities and assets of MFs at the end of the financial year. The external assets and liabilities of the corresponding AMCs were sourced from the annual census on foreign liabilities and assets (FLA) for the reference period of 2025-26.

The survey revealed that MF foreign liabilities rose by 3.3 per cent year-over-year to US$ 31.5 billion (market value) as of the end of March 2026, mainly due to an increase in the market value of units issued to non-residents. Overseas assets of MFs also climbed by 23.9 per cent, amounting to US$ 10.2 billion as of the end of March 2026, primarily due to a boost in holdings of foreign equity securities.

Consequently, net foreign liabilities of MFs decreased to US$ 21.3 billion as of March 2026, down from US$ 22.3 billion the previous year.

The United Arab Emirates, the United States of America, the United Kingdom, and Singapore emerged as the top destinations, holding around 50 per cent of MF units held by non-residents, both in face value and market value. Investments in overseas equity securities by MFs surged by 37.5 per cent as of March 2026 compared to the previous year and were predominantly held in the United States of America, Luxembourg, and Ireland.