An NRI’s Guide to Investing in Mutual Funds in India
Posted: Feb 16, 2019
The migration of Indians to the global west is a common phenomenon. Many of these Indians nurture the dream of coming back to their motherland, as they have dependents here. In such cases, looking for investment options in India is only the right thing to do. Moreover, you will find many NRIs investing in real estate in India. However, for the past few years, NRIs have started investing in mutual funds too as the returns are higher compared to real estate.
Can NRIs invest in Mutual Funds in India?
You probably already have the answer to this question. Yes, NRIs can invest in mutual funds in India. However, you will have to adhere to the rules under the Foreign Exchange Management Act (FEMA). You will not require any approvals from the RBI for investing in mutual funds. You can invest both on repatriable and non-repatriable basis.
To invest on a repatriable basis, you will need an FCNR or NRE account with one of the banks in India. The investment money has to be remitted either from your NRE or FCNR account or via banking channels.
You can also invest on a non-repatriable basis. The investment money has to come from your NRE/FCNR or NRO account.
Should an NRI Invest in Mutual Funds in India?
Yes, like any other investor, NRIs can reap many benefits by investing in mutual funds
How can an NRI Invest in Mutual Funds in India?
The process is similar to what you would have done had you been in India. You will have to comply with the regulatory requirements like submitting your KYC application, open an NRE, NRO, or FCNR account (a demat account if you are an Indian citizen) with a bank in the country. You have two methods as far as investing in mutual funds is concerned:
Mutual Fund Regulations for NRIs:
Apart from the KYC requirements, there are a few other things that you need to know:
Talk to our representative for more details.
Here's a little bit about myself. I've done a Masters in Economics and teach the subject to high school students. I am 32 years old and married to an investment advisor. A Dhoni fan who loves to play football! I am a sports enthusiast and a firm beli