MFs' net foreign liabilities up 4.9% in FY16 to Rs 58,170 cr: RBI

It’s not only domestic investors but the interest of foreign investors in domestic mutual funds is on the rise.

According to the Reserve Bank of India, the foreign liabilities of MFs increased by Rs 2,310 crore in 2015-16, to Rs 58,170 crore at market value in end-March, a rise of 4.1 per cent.  These liabilities of MFs are essentially assets belonging to foreign investors. They are treated as something MFs owe these investors on redemption.

Units issued to non-residents increased to Rs 58,120 crore; the other Rs 50 crore was by way of unpaid income, dividends or sale of proceeds, pending repatriation, among others.

However, the foreign assets of fund houses declined marginally by Rs 210 crore to Rs 3,850 crore, increasing their net foreign liabilities rose by Rs 253 crore to Rs 5,432 crore, a rise of 4.9 per cent. Foreign equity holdings had an overwhelming share in fund houses’ overall foreign assets at Rs 3,830 crore.

The UAE, Singapore, Britain, Mauritius and America together accounted for 46.7 per cent of the total market value in the total units held by non-residents.