How can NRIs invest in Mutual Funds?

If you are a non-resident alien (NRI), it might be time to start investing in mutual funds from the United States (or your country of residence).

The Foreign Investor Opportunity Act of 2008 makes it easier for foreign investors to purchase publicly traded mutual funds in the US, and several other Factors such as the Comprehensive Tax Reform might also contribute to making investments in mutual funds from the US a good choice.

Investing in mutual funds is an effective way for NRIs to create wealth, diversify their portfolios and generate long-term returns. Mutual funds offer a variety of advantages to NRIs such as easy access to global markets, professional management, diversification, and tax-efficiency.

Investing in mutual funds also allows NRIs to benefit from the expertise of experienced fund managers and take advantage of the economies of scale. This makes investing in mutual funds an attractive option for NRIs looking to maximize their returns and minimize their risk.

Can NRIs invest in mutual funds from abroad?

Non-resident Indians (NRIs) have the opportunity to invest in mutual funds from abroad.

NRIs are individuals who have moved abroad for work or study and are considered non-residents of India for taxation purposes. With the advent of technology, investing in mutual funds is becoming easier and more accessible for NRIs.

There are several options available to NRIs when it comes to investing in mutual funds from abroad.

This article will discuss the various ways NRIs can invest in mutual funds from abroad, the benefits of such investments, and the potential risks associated with these investments.

Non-resident Indians (NRIs) can invest in mutual funds from abroad, provided they meet the eligibility criteria.

To be eligible to invest in mutual funds from abroad, an NRI must have a valid NRE/NRO account, PAN card, and other documents as required by the fund house. NRIs can invest either directly with the fund house or through a registered broker or financial adviser.

The process of investing in mutual funds from abroad is similar to that of domestic investors.

NRIs need to select the fund, fill out the application form, submit it along with the necessary documents, and make the payment. The payment for investing in mutual funds from abroad can be made in Indian rupees or in the foreign currency of the country in which the NRI is based.

NRIs can invest in various types of mutual funds, such as equity, debt, hybrid, index, and sector funds.

They can also opt for direct plans or regular plans of mutual funds.

Depending on the type of mutual fund chosen, NRIs may need to submit additional documents, such as proof of identity and address, bank statement, and income tax returns.

Before investing in mutual funds from abroad, NRIs should understand the taxation implications.

Mutual funds are subject to capital gains taxes, stamp duty, and other taxes depending on the type of fund and the investor’s country of residence. It is important to consult a financial adviser or a tax consultant to understand the tax implications of investing in mutual funds from abroad.

Best mutual fund apps for NRIs

1. Groww:

Groww is one of the best mutual fund apps for NRIs. It provides access to over 2000+ mutual funds from top AMCs and allows users to invest in them directly.

The app also offers tax-saving mutual funds, fixed deposits, and other investment options. It provides a range of useful features such as portfolio tracking, smart suggestions, and tax optimization.

2. Paytm Money:

This is another great mutual fund app for NRIs. Paytm Money allows users to invest in direct mutual funds online with just a few taps. It also provides an easy-to-use interface to track investments and get insights into the performance of different funds.

In addition, the app offers personalized recommendations and tax-saving options.

3. Sqrrl:

Sqrrl is a popular mutual fund app for NRIs. It allows users to invest in direct plans of top AMCs and provides various features such as goal setting, automated portfolio tracking, and alert notifications.

The app also has a wide range of options for tax-saving investments.

4. MyCAMS:

MyCAMS is a leading mutual fund app for NRIs. It provides access to more than 2500+ mutual funds from top AMCs and allows users to invest in them directly.

The app also offers a range of features such as portfolio analysis, automated portfolio rebalancing, and tax-saving options.

5. FundsIndia:

FundsIndia is another great app for NRIs. It offers a range of features such as goal setting, automated portfolio tracking, and tax-saving options.

The app also provides access to more than 2500+ mutual funds from top AMCs and allows users to invest in them directly.

Documentation required for NRIs to start investing in Mutual Funds

Non-Resident Indians (NRIs) are allowed to invest in mutual funds in India, subject to certain regulatory guidelines. As such, they must provide certain documents to start investing in mutual funds.

1. Copy of the PAN Card:

NRIs must submit a copy of their Permanent Account Number (PAN) card as proof of identity. PAN cards are issued by the Income Tax Department of India and are mandatory for anyone looking to invest in mutual funds.

2. Copy of the Passport:

A copy of the passport with the visa page is required to be submitted by the NRI investor. The passport will be used to verify the nationality of the investor and also to check whether the investor is eligible to invest in Indian mutual funds or not.

3. Proof of Address:

NRIs must provide a valid proof of address such as a driver’s license, utility bills or any other document to prove their residential address. This document should match the address mentioned on the PAN card.

4. Bank Statements:

NRIs must provide their bank statement from the bank where they have their savings or current account. This statement should be recent, preferably not older than 3 months, and must contain the details of the account holder’s name, address, and account number.

5. KYC Documents:

KYC stands for Know Your Customer and is a process whereby banks and financial institutions obtain details of their customers to ensure compliance with anti-money laundering regulations. NRIs must submit KYC documents such as a copy of their passport and other identification documents, along with proof of address, to complete the KYC process.

6. FATCA/CRS Declaration:

FATCA stands for Foreign Account Tax Compliance Act, while CRS stands for Common Reporting Standards. NRIs must submit the FATCA/CRS declaration form to prove their tax residency in the country where they are currently living. This form is available online and must be duly filled out and submitted.

In addition to the above documents, NRIs must also fill out an application form for mutual fund investment and submit it along with all the relevant documents.

Once all the documents have been submitted and verified, the NRI investor can start investing in mutual funds in India.