Archive · 1 Sep 2026
RBI Survey Shows Foreign Money Shifting in Indian Mutual Funds
The Reserve Bank of India studied money connected to Indian mutual funds from other countries.
Non-resident investors still held many Indian mutual fund units.
Investors from the United Arab Emirates, United States, United Kingdom and Singapore made up about half of those holdings.
The value of foreign-owned mutual fund units rose slightly to $31.5 billion.
Indian mutual funds also invested much more money overseas, especially in foreign shares.
Their overseas assets rose to $10.2 billion.
Because overseas assets grew faster than foreign liabilities, net foreign liabilities fell.
Non-resident Indians generally need an NRO or NRE bank account to invest, and some schemes restrict investors from the United States and Canada because of compliance rules.
Foreign liabilities of Indian mutual funds rose 3.3% year-on-year to $31.5 billion by end-March 2026.
Overseas assets increased 23.9% to $10.2 billion, mainly because of higher foreign equity holdings.
Net foreign liabilities declined to $21.3 billion from $22.3 billion a year earlier.
The United Arab Emirates, United States, United Kingdom and Singapore accounted for about half of non-resident-held mutual fund units.
Japan and Canada together represented about 80% of foreign direct investment in Indian asset management companies.
- Who
- The Reserve Bank of India, non-resident investors, Indian mutual funds and foreign investors in asset management companies.
- What
- The RBI’s 2025-26 survey found rising overseas assets, slower growth in foreign liabilities and changing sources of foreign direct investment in Indian asset management companies.
- When
- As of the end of March 2026, compared with the previous financial year.
- Where
- The investments involved Indian mutual funds, with overseas holdings concentrated in the United States, Luxembourg and Ireland.
- Why
- Foreign liabilities rose mainly because the market value of previously issued mutual fund units increased, while overseas assets rose mainly because Indian mutual funds held more foreign equity securities.
- Foreign liabilities
- $31.5 billion at market value as of end-March 2026, up 3.3% year-on-year.
- Overseas assets
- $10.2 billion, up 23.9% from the previous year.
- Net foreign liabilities
- $21.3 billion, down from $22.3 billion a year earlier.
- Top non-resident sources
- The United Arab Emirates, United States, United Kingdom and Singapore together accounted for about 50% of non-resident-held mutual fund units.
- Overseas equity growth
- Indian mutual funds’ investment in overseas equity securities rose 37.5%.
- Main overseas equity markets
- The United States, Luxembourg and Ireland accounted for most overseas equity holdings.
- AMC foreign direct investment
- Japan and Canada together accounted for about 80% of foreign direct investment in asset management companies.