Foreign assets of domestic mutual funds rise to $2.9 bn at March-end: RBI data

Foreign assets of the mutual fund companies jumped several folds to $2.9 billion or Rs 20,982 crore as of the end of March 2021, on account of a rise in the value of equity. According to a Survey of Foreign Liabilities and Assets of the Mutual Fund Companies, the UAE, the UK, USA and Singapore together accounted for nearly 45 per cent of the total MF units held by non-residents, both at face value as well as market value, the RBI said in a statement.

It added that the foreign assets of MF companies increased due to a rise in equity security and other foreign assets during the year and stood at $2.9 billion at the end of March 2021, up from $778 million at the end of the previous fiscal. In rupee terms, it soared from Rs 5,864 crore to Rs 20,982 crore.

The survey, the RBI said, covered 44 Indian MF companies and their asset management companies (AMCs), which held or acquired foreign assets and liabilities during 2020-21. Overseas equity investments of mutual fund companies were largely concentrated in USA and Luxembourg.

The survey further said foreign liabilities of AMCs stood at $5.7 billion in March 2021 whereas their foreign assets were much lower at $0.1 billion. The relatively small overseas investments by AMCs were largely held in Guernsey, Singapore and Mauritius.