The Reserve Bank of India (RBI) in its latest survey of foreign liabilities and assets of the mutual funds (MFs) has showed that foreign liabilities of MFs increased by 19.9 per cent during 2024-25 to $30.5 billion (at market value) in March 2025, due to the rise in units issued to non-residents. Further, overseas assets of MFs declined by 5.6 per cent and stood at $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 $22.2 billion in March 2025 from $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 investments of the MFs were concentrated in the USA, Luxembourg, and Ireland.

As per the report, foreign liabilities of AMCs increased by 16.8 per cent and stood at $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.