Indian mutual funds' overseas equity holdings experienced a remarkable surge, rising 37.5% to ₹93,602 crore by March 2026, according to Reserve Bank of India data. This substantial increase represents a significant jump from ₹68,072 crore held a year earlier, demonstrating the growing appetite of Indian mutual funds for international investments. The United States maintained its dominance as the largest destination for these holdings, accounting for 63.5% of total overseas equity investments.
The United States emerged as the primary destination for Indian mutual fund investments, with holdings increasing from ₹43,531 crore in March 2025 to ₹59,403 crore in March 2026. This represents a substantial ₹15,872 crore increase or 36.5% growth, maintaining the US's commanding position in the overseas investment landscape. Luxembourg secured the second position with holdings rising from ₹13,631 crore to ₹18,948 crore, marking a 39% increase and capturing 20.2% share of total overseas investments.
Ireland emerged as the third-largest destination with holdings growing from ₹7,600 crore to ₹10,003 crore, representing a 31.6% increase and securing 10.7% share of total overseas investments. Among other major destinations, Canada showed exceptional growth with holdings jumping from ₹215 crore to ₹1,110 crore, marking a dramatic 416.3% increase. Other significant investments included Mainland China (₹822 crore), United Kingdom (₹539 crore), Japan (₹352 crore), Singapore (₹213 crore), and South Korea (₹163 crore).
According to RBI data, foreign liabilities of mutual funds increased 3.3% year-on-year to US$31.5 billion at market value as of end-March 2026, primarily due to an increase in the market value of units issued to non-residents. Overseas assets of mutual funds also rose 23.9% to US$10.2 billion by end-March 2026, mainly reflecting an increase in holdings of foreign equity securities. Consequently, net foreign liabilities of mutual funds declined to US$21.3 billion from US$22.3 billion a year earlier.
