Foreign assets of mutual funds rise 24 percent to $10.2 billion
Overseas assets of Indian mutual funds rose 23.9 percent to $10.2 billion in 2025-26, driven by higher foreign equity holdings. Net foreign liabilities narrowed to $21.3 billion, according to Reserve Bank of India survey data.
Equities drive overseas expansion
The 2025-26 survey covered 53 Indian mutual funds and their asset management companies.
Foreign assets of mutual funds reached $10.17 billion (₹96,294 crore) at end-March 2026, lifted by a 37.5 percent expansion in foreign equity securities to ₹93,602 crore.
The United States remained the primary destination for overseas equities with a 63.5 percent share, followed by Luxembourg at 20.2 percent and Ireland at 10.7 percent.
Total foreign liabilities rose 3.3 percent to $31.50 billion (₹2,98,200 crore) at market value.
Non-resident unit holders from the United Arab Emirates, the United States, the United Kingdom, and Singapore together accounted for roughly half of all units held abroad.
Tokyo and Toronto anchor management FDI
External liabilities of asset management companies rose 18.1 percent to $8.69 billion as of end-March 2026.
Inward foreign direct investment reached ₹56,201 crore, while portfolio investment stood at ₹26,023 crore.
Japan and Canada dominated direct investment into management firms, accounting for 65.7 percent and 13.5 percent of the total, respectively.
Meanwhile, direct investment abroad by domestic managers remained modest at ₹907 crore, with Guernsey and Singapore representing over 97 percent of the capital deployed.
Outward diversification, concentrated capital
Rapid growth in overseas equities highlights healthy international diversification among Indian mutual funds.
However, severe concentration in US assets and Japanese FDI keeps cross-border exposures structurally narrow.
Broader regional dispersion will be essential to withstand localized market shocks.