New Delhi, Oct. 21 -- Mutual funds in India saw their net foreign liabilities drop by 18% in FY20, a Reserve Bank of India (RBI) report published on Tuesday showed. Much of it, however, may have been the result of the decline in the value of investments from non-resident Indians (NRIs) in March, after the covid-19 outbreak hit the markets.

Since then, the markets have recovered close to their all-time highs, and foreign assets of mutual funds have also increased, albeit from a low base, as domestic investors parked more money with mutual funds investing outside India.

Historically, foreign liabilities of mutual funds (on NRI investments) far exceeded their foreign assets.

The foreign liabilities of mutual funds fell from $12.4 billion ...