The foreign liabilities of Indian mutual fund schemes increased 19.9% to Rs. 2.6 lakh crore in market value as more MF units were sold abroad in FY25, according to a study by the Reserve Bank of India (RBI).
Indian MFs had sold units which were worth Rs. 2.1 lakh crore in market value at end FY24. The United Arab Emirates had the largest share of investors in Indian MFs, amounting to 1/5th of the total market value, which is about Rs. 52,549 crore. Investors from the U.S. and U.K. together accounted for another 20%, totalling a market value of about Rs. 10,900 crore. Investment from Australia and Canada grew the fastest at a rate of more than 40% in the past year.
A sharp contrast was seen in the interest that the 45 Indian mutual funds, inclusive of prominent names, showed in foreign equities. Barring Hong Kong and Canada, Indian MFs reduced their exposure, with investment in major economies like Japan declining almost 20%. Exposure to U.S. and U.K. reduced nearly 4% each in the past fiscal.
Published – August 19, 2025 08:20 pm IST
