Foreign liabilities of mutual fund companies increased by $3.4 billion to $17.7 billion last fiscal due to the rise in units issued to non-residents.
Mutual funds foreign assets increased by $3.6 billion to $6.5 billion on the back of rise in their holdings of equity securities, according to an RBI survey.
As a result, net foreign liabilities of MF companies were close to the last year’s level of $11.3 billion ($11.5 billion), it said.
Of the total MF units held abroad, non-residents in the United Arab Emirates, the UK, the US and Singapore together accounted for nearly 44 per cent while the US and Luxembourg continued to be the major overseas investment destination for MF companies, said the Central bank survey released on Monday.
Foreign liabilities and assets of Asset Management Companies, which own mutual funds, at $5.7 billion and $ 0.1 billion, remained close to their previous year’s level.
Non-residents in Japan and the UK together held nearly three-fourths of FDI among the AMCs. Guernsey and Singapore accounted for over 95 per cent of the relatively small overseas investments by AMCs.