Rise in foreign liabilities of mutual fund companies led to better foreign investment in India, say industry experts

Rise in foreign liabilities of mutual fund companies led to better foreign investment in India, say industry experts

Foreign assets of MF companies increased by $3.6 billion during the year on the rise in equity holdings, to $6.5 billion in March 2022.





August 12, 2022 / 09:13 PM IST





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Foreign liabilities of mutual fund (MF) companies increased by $3.4 billion during 2021-22 due to the rise in units issued to non-resident Indians (NRIs). As in March 2022, it stood at $17.7 billion (at market value), shows data published by the Reserve Bank of India (RBI) on August 8.

According to analysts and mutual funds industry experts, globally the rate of returns has been considerably low lately. And hence, NRIs looked for opportunities to invest and allocate money to Indian equities.

Foreign assets of MF companies increased by $3.6 billion during the year on the back of rise in their holdings of equity securities, to reach $6.5 billion in March 2022. As a result, net foreign liabilities of MF companies stood at $11.3 billion in March 2022.

Investments in foreign liabilities are the outstanding limits of mutual funds held by NRIs.

Of the total MF units held abroad, NRIs in the United Arab Emirates (UAE), the United Kingdom (UK), the United States of America (USA), and