Foreign assets of domestic mutual funds (MF) surged 3.7 times to $2.85 billion year-on-year in 2020-21 (FY21), shows data published by the Reserve Bank of India (RBI). This is largely the overseas equity holdings of domestic MFs. The increase is on the back of a sharp rally in global stocks and growing preference among domestic investors to park in foreign assets, as a portfolio diversification strategy.
The assets under management (AUM) of overseas fund of funds has risen nearly 8 fold to Rs 21,440 crore ($2.9 billion) this August compared to March 2020 levels, shows data provided by industry body