RBI: Mutual Funds’ Overseas Assets Jump 23.9% to $10.2 Billion; Net Foreign Liabilities Fall to $21.3 Billion
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The Reserve Bank of India has released its 2025-26 survey of the foreign liabilities and assets of Indian mutual funds and their asset management companies, showing a sharp rise in overseas investments by mutual funds even as their net foreign liabilities declined. The August 31, 2026 release covers 53 Indian mutual funds and their AMCs that held or acquired foreign assets or liabilities during 2025-26 or earlier years.
For finance, investment and reporting professionals, the release provides a detailed year-end picture of how much Indian mutual funds owe to non-resident unit holders, where those investors are located, how much the funds hold in overseas securities and where foreign ownership of Indian AMCs is concentrated.
Mutual fund foreign liabilities rise to $31.5 billion
RBI said foreign liabilities of mutual funds increased 3.3% year-on-year to $31.5 billion at end-March 2026. In rupee terms, total foreign liabilities stood at ₹2,98,200 crore, up from ₹2,61,059 crore a year earlier. The increase was driven mainly by the market value of mutual fund units held by non-residents.
The market value of units held by non-residents was ₹2,97,530 crore at end-March 2026, while other foreign liabilities were ₹670 crore. At face value, foreign liabilities represented by units were ₹73,471 crore.
Overseas assets jump 23.9% to $10.2 billion
The stronger movement was on the asset side. Mutual funds' overseas assets increased 23.9% to $10.2 billion, or ₹96,294 crore, at end-March 2026. RBI said this was mainly due to higher holdings of foreign equity securities.
Equity securities held abroad were valued at ₹93,602 crore, compared with ₹68,072 crore a year earlier, a rise of 37.5%. Other foreign assets stood at ₹2,692 crore. The survey reported no material foreign debt-securities position for the mutual funds in the table.
Because foreign assets grew faster than foreign liabilities in US-dollar terms, net foreign liabilities of mutual funds declined to $21.3 billion from $22.3 billion a year earlier. In rupee terms, net liabilities were ₹2,01,906 crore at end-March 2026.
United States dominates overseas equity holdings
The RBI's country table shows that the United States remained by far the largest destination for overseas equity investments of the surveyed mutual funds. US equity holdings were valued at ₹59,403 crore, representing 63.5% of the total overseas equity portfolio. Luxembourg accounted for ₹18,948 crore, or 20.2%, and Ireland for ₹10,003 crore, or 10.7%.
Together, those three jurisdictions represented more than 94% of the overseas equity securities reported in the survey. Other destinations included Hong Kong, Canada, mainland China, the United Kingdom, Japan, Singapore and South Korea.
UAE is the largest location for non-resident mutual fund unit holdings
On the liability side, the United Arab Emirates was the largest identified country for mutual fund units held by non-residents. At market value, UAE-linked holdings were ₹61,299 crore, or 20.6% of the total. The United States accounted for ₹35,502 crore, the United Kingdom ₹28,886 crore and Singapore ₹21,468 crore.
RBI said the UAE, United States, United Kingdom and Singapore together accounted for around half of non-resident mutual fund unit holdings, both at face value and market value. The country tables also note that the residual category includes non-resident Indians who use an Indian permanent address, so location data should be read with that classification caveat.
Foreign liabilities of AMCs rise 18.1%
The survey also gives a separate picture for asset management companies. Foreign liabilities of AMCs increased 18.1% year-on-year to $8.7 billion at end-March 2026. In rupee terms, AMC foreign liabilities rose to ₹82,248 crore from ₹62,995 crore.
Direct investment in AMCs accounted for ₹56,201 crore and portfolio investment for ₹26,023 crore. Foreign assets of AMCs were comparatively small at ₹938 crore, leaving net foreign liabilities of ₹81,310 crore.
Japan and Canada account for about 80% of AMC FDI
Foreign direct investment in the surveyed AMCs increased 31.1% to ₹56,201 crore. Japan was the dominant source with ₹36,920 crore, or 65.7% of the total, while Canada contributed ₹7,592 crore, or 13.5%. Together, the two countries accounted for roughly 79% of total FDI in AMCs, consistent with RBI's statement that their combined share was about 80%.
Other sources included Mauritius, the United Kingdom, France, the Netherlands and Singapore. The data therefore shows a concentrated foreign-ownership pattern at the AMC level even as non-resident mutual fund unit ownership is spread across a broader set of jurisdictions.
What finance and reporting teams should take from the survey
- Separate fund-level and AMC-level exposure. RBI reports mutual fund unit liabilities and overseas portfolio assets separately from direct and portfolio investment in the AMCs themselves.
- Watch valuation effects. The survey uses market value for liabilities and assets unless stated otherwise, so year-on-year changes can reflect both flows and market-price movements.
- Country concentration is material. Overseas mutual fund equity assets are heavily concentrated in the United States, Luxembourg and Ireland, while AMC FDI is concentrated in Japan and Canada.
- Use the detailed tables for reconciliation. The press release provides rupee and US-dollar values, country shares and annual variations that can be useful for research, regulatory reporting context and investment-industry analysis.
The latest RBI survey shows Indian mutual funds becoming more internationally invested: overseas assets grew substantially faster than foreign liabilities during 2025-26, reducing net foreign liabilities in dollar terms. At the same time, non-resident ownership of mutual fund units and foreign investment in AMCs remain significant, with clear geographic concentration. For CAs, investment-industry finance teams and analysts, the useful story is the combination of expanding overseas equity exposure, continuing non-resident participation and a concentrated foreign-ownership profile in the AMC sector.
Useful official links
Key takeaway
Same-day RBI release with distinctive searchable figures on foreign liabilities, overseas equity assets, country concentration and AMC FDI.
