Foreign Assets Of Mutual Fund Companies Increased

Foreign assets of mutual fund companies increased, $ 2.9 billion in foreign assets. There has been a significant increase in the foreign assets of mutual fund companies this year.

Overseas assets of mutual fund companies had increased manifold to USD 2.9 billion or Rs 20,982 crore by the end of March this year.

The main reason behind this happening is believed to be the increase in the value of equity or share.

According to a statement by the Reserve Bank of India (RBI), “According to a survey of foreign liabilities and assets of mutual fund companies.”

United Arab Emirates, United Kingdom, USA, and Singapore together held the non-resident holdings at face value as well as About 45 percent of the total mutual fund units were taken in the market.

Apart from this, the Reserve Bank also said in its statement that “During this period, the foreign assets of mutual fund companies increased due to increase in equity security and other foreign assets and it stood at US$ 2.9 billion at the end of March 2021, which was US$ 2.9 billion during the previous financial year.”

“The year-end stood at USD 778 million. In rupee terms, it increased to Rs 20,982 crore from Rs 5,864 crore.”

Along with this, the central bank in its survey has also given information that “Cover 44 Indian mutual fund companies and their asset management companies (AMCs), which held or acquired foreign assets and liabilities during 2020-21. ”

The Reserve Bank of India survey further stated that the foreign liabilities of AMCs stood at US$ 5.7 billion in March 2021, while their foreign assets stood at US$ 0.1 billion.

The relatively small foreign investments by AMC were largely conducted in Guernsey, Singapore, and Mauritius.

Foreign equity investments of mutual fund companies were largely concentrated in the United States and Luxembourg.