I am an NRI. Am I allowed to invest in mutual funds here? Please share insights.
Yes, absolutely!
Investing in Indian mutual funds is not just possible, it is a smart way to stay connected to India’s growth. The process is simple once you set up the basics.
To start, you need a Non-Resident External (NRE) or Non-Resident Ordinary (NRO) account with an Indian bank. Most mutual fund houses allow investments through both.
NRE account allows repatriation or taking money back abroad seamless. You will also need a valid PAN card and to complete KYC, which is now possible even online.
Here is what you should always check before investing:
- FATCA Compliance: Since India follows FATCA, you will need to declare your tax residency.
- Repatriation Rules: NRE investments are fully repatriable. NRO redemptions can be subject to limits.
- Country Restrictions: If you are in the US or Canada, only select fund houses accept applications due to compliance issues.
- Taxation: Gains are taxable in India, but you can avoid double taxation through the Double Taxation Avoidance Agreement (DTAA).
Personally, mutual funds give me an easy way to diversify into equities and debt without tracking stocks daily.
SIPs make it effortless and everything is digital. Finally, if you are clear on the rules, investing as an NRI is smooth and rewarding.