NRI investment in Mutual Funds - Complete Process

Published on 07 Aug 2019 / In Salary Class

NRI investment in Mutual Funds.

1. Can NRI invest in mutual funds in India?

• NRI’s can invest in mutual fund in India.
• In case of NRI’s, no special approvals is to be taken from SEBI or RBI, however the documentation can be little more and in case of US and Canadian NRI’s.

2. NRE or NRO accounts should be used

• An NRI can invest in mutual funds only from a NRE or NRO bank account.

3. KYC

• One-time documentation required to invest in mutual funds.

• For doing your KYC, following documents are required.
1. Copy of Passport is compulsory
2. Copy of Overseas Address Proof (in English)
3. Copy of Indian PAN card
4. Two passport size photos
5. Fully Filled KYC form

• Mainly for foreign Account Holders.
• Also, mainly required for US and Canada investors.
• One has to provide information like country of tax residence, tax identification number from that country, country of birth, country of citizenship, etc.

5. NRI’s from US and Canada

• Following are the funds houses accept NRI investments from US and Canada:
1. Birla Sun Life Mutual Fund
2. SBI Mutual Fund
3. UTI Mutual Fund
4. ICICI Prudential Mutual Fund
5. DHFL Pramerica Mutual Fund
6. L&T Mutual Fund
7. PPFAS Mutual Fund

8. Sundaram Mutual Fund

6. NRI Taxation rules
• Equity and Debt Taxation

Capital Gain taxation for NRI’s

1. Equity oriented Mutual fund Scheme

Short Term Capital Gain
Long Term Capital Gain
10% (if capital gain exceeds
Rs. 1Lacs. )

2. Other than Equity oriented Mutual fund Scheme

Short Term Capital Gain
Long Term Capital Gain
20% with Indexation
10% without Indexation

7. How redemptions work for NRI?

• Now a day’s we can say that redemption is very easy process. Even within 48 Hours you can receive the Money easily.

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