Investing In Mutual Funds For NRIs: Complete Guide (2026 Update)

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A member in our US WhatsApp group messaged me at midnight last year.

“Mani, I tried to start an SIP with HDFC Mutual Fund from the US. My application got rejected. Nobody will tell me why. I’ve been going back and forth for two weeks.”

The reason? He was based in the US. HDFC Mutual Fund requires US-based NRIs to be physically present in India to invest. He didn’t know that.

Another member in our UK group set up a Rs 25,000 monthly SIP in 2019. By 2025, that SIP had grown to over Rs 30 lakhs. She called it the smartest financial decision she ever made.

Same investment category. Wildly different experiences. The difference? Knowing the rules.

Mutual funds are one of the most powerful wealth-building tools for NRIs. But the process has layers – especially if you’re based in the US or Canada. And with new KYC deadlines, updated tax rules, and the PFIC headache for US NRIs, 2026 has brought fresh changes to navigate.

This guide covers everything. Whether you’re investing from abroad, planning to return, or have already moved back.

Why NRIs Should Care About Indian Mutual Funds

Before we get into the how, let’s talk about the why.

India’s economy has grown consistently over the last decade. The stock market has delivered strong long-term returns. And mutual funds offer the easiest way to participate in that growth without picking individual stocks.

Here’s what makes mutual funds attractive for NRIs specifically:

Professional management.

You don’t need to track the Indian market from a different timezone. Fund managers do it for you.

Diversification.

One mutual fund can hold 50-100 stocks across sectors. Your risk is spread out.

SIP option.

Systematic Investment Plans let you invest a fixed amount every month automatically. Rs 5,000, Rs 10,000, Rs 25,000 – whatever fits your budget. It’s disciplined, automated investing.

Rupee cost averaging.

When you invest via SIP, you buy more units when markets are low and fewer when markets are high. Over time, this smooths out volatility.

Easy to start.

Unlike direct stock investing, you don’t need a demat account or PIS permission for mutual funds. Just an NRE or NRO account and completed KYC.

Repatriation flexibility.

Invest through NRE account – fully repatriable. Invest through NRO – repatriable up to $1 million per year.

The Basic Setup: What You Need Before Investing

Let me walk you through the prerequisites. Without these in place, no AMC (Asset Management Company) will accept your investment.

1. PAN Card

Mandatory. Non-negotiable. Every mutual fund investment in India requires a PAN.

If you don’t have one, apply for a PAN card – NRIs apply through Form 49AA.

2. NRE or NRO Bank Account

Mutual funds in India only accept investments in Indian Rupees. You cannot invest in foreign currency.

So you need an Indian bank account:

NRE Account – For investing your foreign earnings. Investments are fully repatriable. This is what most NRIs prefer.

NRO Account – For managing income earned in India (rent, dividends, etc). Investments are repatriable up to $1 million per financial year.

If you don’t have an Indian bank account yet, check our guide on how to open an NRI account from the USA.

3. KYC Compliance

This is where many NRIs get stuck.

As an NRI, you need separate KYC documentation. Your old resident KYC (if you had one) is no longer valid once your status changes to non-resident.

Documents needed:

PAN card copy
Passport copy (with valid visa/residence permit)
Proof of overseas address (utility bill, bank statement, driving license)
Passport-sized photographs
FATCA/CRS self-declaration form

Important 2026 update: The deadline for NRIs to get KYC upgraded to “Validated” status (Aadhaar linked with PAN) has been extended to April 30, 2026. Until then, “KYC Registered” status works. But after that deadline, only “KYC Validated” investors can transact.

If you have an Aadhaar linked to your PAN and an Indian mobile number, you can do eKYC through CAMS or KFintech online. If not, you’ll need to complete offline physical KYC with attested documents.

4. FATCA Declaration

If you’re based in the US, UK, Canada, UAE, or any of the 100+ countries that have adopted CRS (Common Reporting Standard), you must provide a FATCA/CRS self-certification.

This is a form declaring your tax residency, tax identification number (like SSN for US), and other details. Every AMC requires this.

The FATCA Problem: Why US and Canada NRIs Face Extra Hurdles

This is the section I wish I didn’t have to write. But it’s reality, and you need to understand it.

What is FATCA?

The Foreign Account Tax Compliance Act is a US law that requires all financial institutions worldwide to report details of accounts held by US persons (citizens, green card holders, tax residents) to the US government.

India signed an Inter-Governmental Agreement with the US in 2015 to implement FATCA.

Why It Affects Mutual Fund Investing

Indian AMCs must comply with FATCA reporting requirements for any US or Canada-based investor. This means extra paperwork, compliance costs, and reporting obligations for the fund house.

Many AMCs decided the hassle wasn’t worth it. They simply stopped accepting investments from US and Canada-based NRIs.

Which AMCs Accept US/Canada NRIs?

This list changes periodically, so always verify directly with the AMC before investing. As of early 2026, here’s the landscape:

AMCs that accept US/Canada NRIs online (no physical presence needed):

Nippon India Mutual Fund
UTI Mutual Fund
PPFAS Mutual Fund
Sundaram Mutual Fund
Tata Mutual Fund

AMCs that accept US/Canada NRIs but require physical presence in India:

HDFC Mutual Fund (SIP and lump sum, but must apply from India)
ICICI Prudential Mutual Fund (offline transactions with additional declaration)
SBI Mutual Fund (offline transactions with additional declaration)
DSP Mutual Fund (lump sum only, physical presence)
Motilal Oswal Mutual Fund (lump sum only, physical presence)

AMCs that accept only US NRIs (not Canada):

Bajaj Finserv Mutual Fund
Bandhan Mutual Fund

Important: Each AMC has its own conditions. Some accept only lump sum investments (no SIP). Some require physical application forms. Some need additional declarations. Always check the latest policy directly with the fund house.

NRIs from UK, UAE, Singapore, Australia, etc.

Good news. If you’re NOT based in the US or Canada, investing in Indian mutual funds is almost as simple as it is for resident Indians. Almost all AMCs accept NRIs from other countries without extra restrictions.

The KYC process applies to everyone. But you won’t face FATCA-related rejections.

NRI Location	AMC Access	Extra Compliance	Online Investing
US	Limited (~10-15 AMCs)	FATCA + additional declarations	Some AMCs allow online
Canada	Limited (~10-12 AMCs)	FATCA/CRS + additional declarations	Some AMCs allow online
UK	Almost all AMCs	Standard CRS declaration	Most platforms available
UAE	Almost all AMCs	Standard CRS declaration	Most platforms available
Singapore	Almost all AMCs	Standard CRS declaration	Most platforms available
Australia	Almost all AMCs	Standard CRS declaration	Most platforms available

Step-by-Step: How to Start Investing in Mutual Funds as an NRI

Step 1: Open NRE/NRO Bank Account

If you don’t have one, this is your first task. SBI, ICICI, HDFC, Axis – all major banks offer NRI accounts. Some can be opened online, some require a branch visit.

For bank comparisons, see our NRI banking comparison guide.

Step 2: Complete NRI KYC

You can do this through:

CAMS or KFintech (the two main registrar agencies for mutual funds)
Your bank (if they offer investment services)
Investment platforms like Kuvera, INDmoney, or MF Utility

Submit your documents, complete verification (video KYC if available), and get your KYC status to “Registered” at minimum.

Step 3: Choose Your Investment Platform

You have several options:

Direct with AMC websites: Go to the mutual fund company’s website (e.g., nipponindiamf.com), register as NRI, and invest. Full control, direct plans (lower expense ratio).

Through bank’s investment platform: If your NRI bank offers it (like ICICI Direct for ICICI Bank customers). Convenient if you want everything in one place.

Independent platforms: Kuvera is popular among NRIs – it’s free, offers direct plans, and works well for non-US NRIs. For US/Canada NRIs, options are more limited. SBNRI and Rupeeflo are platforms specifically designed for NRI mutual fund investing.

MF Utility (MFU): An industry platform where you can invest across multiple AMCs through a single account. Works for NRIs but the interface is basic.

Through Power of Attorney (PoA): If you find the process too complex remotely, you can authorize a trusted person in India to manage your mutual fund investments on your behalf. Both signatures (NRI investor + PoA holder) must be on the KYC documents.

Step 4: Select Your Funds

More on this below. But broadly – choose based on your goals, risk appetite, and time horizon. Not based on last year’s returns.

Step 5: Start Investing

Lump sum or SIP – your choice. For SIPs, you set up an auto-debit from your NRE/NRO account on a specific date each month. The mutual fund units are purchased automatically.

Pro tip from our community: Start with a small amount to test the process. One member started with Rs 5,000/month SIP just to make sure everything worked – bank debit, fund allocation, statement generation. Once he was confident, he increased to Rs 50,000/month.

Choosing the Right Mutual Funds: A Framework for NRIs

I’m not a financial advisor, so I won’t recommend specific funds. But I can share the framework that works well for NRIs in our community.

Fund Categories Explained Simply

Category	What It Does	Risk Level	Ideal Holding Period	Best For
Large Cap Equity	Invests in top 100 companies	Moderate	5+ years	Stable growth, core portfolio
Mid Cap Equity	Invests in companies ranked 101-250	High	7+ years	Higher growth potential
Small Cap Equity	Companies ranked 251+	Very High	7-10 years	Aggressive growth
Flexi Cap	Mix of large, mid, and small	Moderate-High	5+ years	Diversified equity exposure
Index Fund (Nifty 50)	Mirrors the Nifty 50 index	Moderate	5+ years	Low-cost, passive investing
ELSS (Tax Saving)	Equity fund with 3-year lock-in	Moderate-High	3+ years	Tax saving under Section 80C
Debt/Bond Fund	Invests in government/corporate bonds	Low	1-3 years	Stability, short-term parking
Hybrid/Balanced	Mix of equity and debt	Moderate	3-5 years	Balanced risk-return
Liquid Fund	Very short-term debt instruments	Very Low	Days to months	Emergency fund, parking money

For Most NRIs: Keep It Simple

The biggest mistake I see NRIs make is overcomplicating their portfolio. 7-8 funds across categories they don’t fully understand.

Here’s a simple starting framework:

Core (60-70% of equity allocation): One or two large-cap or flexi-cap funds. Or simply a Nifty 50 index fund. This is your foundation.

Growth (20-30%): One mid-cap fund for higher growth potential. Accept the volatility.

Stability (10-20% of total portfolio): A short-duration debt fund or liquid fund. For the portion you might need in 1-3 years.

That’s it. Three to four funds. You can always add complexity later as you learn more about the Indian market.

Direct Plans vs Regular Plans

Direct plans have lower expense ratios because there’s no distributor commission. Over 10-20 years, this difference compounds to lakhs of rupees.

Regular plans include distributor commission and have higher expense ratios. You get advice and hand-holding from a distributor.

If you’re comfortable doing your own research, always go with direct plans. If you need advisory support, a regular plan through a good financial advisor is worth the extra cost.

Taxation of Mutual Funds for NRIs (2026 Rules)

Tax is where NRI mutual fund investing gets serious. Let me break it down clearly.

Capital Gains Tax

Fund Type	Holding Period for LTCG	STCG Tax Rate	LTCG Tax Rate	LTCG Exemption
Equity Funds	> 12 months	20%	12.5%	Rs 1.25 lakh/year
Debt Funds (bought after April 2023)	Always STCG	Slab rate	N/A	N/A
Hybrid Funds (equity > 65%)	> 12 months	20%	12.5%	Rs 1.25 lakh/year
Hybrid Funds (equity < 65%)	> 24 months	Slab rate	12.5%	None
International Funds	> 24 months	Slab rate	12.5%	None

Key changes since Budget 2024:

STCG on equity funds increased from 15% to 20%
LTCG on equity funds increased from 10% to 12.5%
LTCG exemption on equity increased from Rs 1 lakh to Rs 1.25 lakh per year
Debt mutual funds bought after April 1, 2023 have NO long-term capital gains benefit – all gains taxed at slab rate regardless of holding period

TDS: The NRI Tax Headache

This is the biggest practical difference between NRI and resident mutual fund investing.

When resident Indians redeem mutual funds, no TDS is deducted (for most transactions). They pay tax through self-assessment.

For NRIs, TDS is deducted at source on every redemption. The AMC deducts tax before crediting your account.

TDS rates for NRIs:

Equity funds (STCG): 20% + surcharge + cess
Equity funds (LTCG): 12.5% + surcharge + cess (on gains exceeding Rs 1.25 lakh)
Debt funds: 30% + surcharge + cess (at highest slab rate, since gains are always short-term)

The over-deduction problem: Because AMCs deduct TDS at maximum applicable rates, NRIs often overpay tax. If your actual tax liability is lower than the TDS deducted, you can claim a refund by filing your Indian income tax return.

This is why filing ITR is important for NRIs – even when it’s technically not mandatory in some cases.

For a detailed understanding of TDS, check our guide on how TDS works for NRIs.

Dividends

Since 2020, dividends from mutual funds are added to your total income and taxed at your slab rate. TDS of 20% is deducted for NRIs on dividend payments.

The PFIC Problem: Critical for US-Based NRIs

If you’re based in the US (citizen, green card holder, or tax resident), this section is essential. Please don’t skip it.

What is PFIC?

PFIC stands for Passive Foreign Investment Company. Under US tax law, Indian mutual funds are classified as PFICs.

This is not a technicality. It fundamentally changes how your Indian mutual fund gains are taxed in the US.

Why PFIC Taxation is Punishing

Under normal US capital gains rules, long-term gains are taxed at a favorable 15-20% rate.

Under PFIC rules, the IRS:

Calculates the gain for each year you held the investment
Taxes each year’s gain at the highest ordinary income rate for that year (up to 37%)
Adds an interest charge on top for the “deferred” tax

The result? You can end up paying 40-50% effective tax on your Indian mutual fund gains in the US. Far more than regular capital gains.

What This Means Practically

If you’re a US NRI investing in Indian mutual funds, you’re potentially getting double-hit:

India deducts TDS on redemption (12.5-30%)
The US taxes PFIC gains at the highest rate plus interest

Yes, DTAA provides Foreign Tax Credit. You can offset what you paid in India against your US tax. But the PFIC tax is so aggressive that the credit often doesn’t fully cover it.

The Workarounds

Option 1: Mark-to-Market election (QEF or MTM).

You can elect to treat your PFIC income differently, but this requires annual filings (Form 8621 for each fund) and careful tax planning. Consult a US-India cross-border tax specialist.

Option 2: Avoid Indian mutual funds altogether. Many US NRIs instead invest in:

Direct Indian stocks (not PFICs – taxed under normal capital gains rules)
US-listed India ETFs (like INDA, SMIN) which are US-domiciled
US mutual funds and ETFs for broader emerging market exposure

Option 3: Invest in India only after returning.

If you’re planning to move back within a few years, wait. Once you’re an Indian resident, PFIC rules stop applying (assuming you’re no longer a US person, i.e. you’ve surrendered your green card or never had US citizenship).

For US citizens who will always remain US persons:

Direct Indian stocks + US-listed India ETFs is the cleaner approach. Indian mutual funds create compliance nightmares and adverse tax treatment.

For Canadian NRIs:

Good news. Canada does not have PFIC-equivalent rules for Indian mutual funds. Canadian NRIs can invest more freely, though they still have FATCA/CRS reporting and should check if their specific AMC accepts Canadian residents.

For US tax filing specifics, see our guide on reporting Indian income on IRS tax returns.

What Happens to Your Mutual Funds When You Return to India?

This is the scenario most relevant for our community. And the good news – it’s mostly smooth.

Your Investments Stay Intact

Your mutual fund units don’t disappear. They remain exactly as they are. The NAV continues to grow (or fluctuate) based on market performance.

You Must Update Your Status

Once you return and become a resident, you need to:

Inform every AMC where you hold mutual funds about your change in residential status (from NRI to Resident)
Update your KYC with KRA (KYC Registration Agency) – change from NRI to Resident status
Convert your NRE/NRO bank accounts to regular resident savings accounts
Link your new resident bank account to your mutual fund folios for future SIPs and redemptions

The Beautiful Part: Everything Opens Up

Once you’re a resident:

All AMCs accept you.
No more FATCA restrictions. Every mutual fund house in India is available.
All platforms work.
Groww, Zerodha Coin, Kuvera, Paytm Money, ET Money – everything.
No TDS on equity fund redemptions.
This alone is a major relief. As a resident, equity fund redemptions don’t attract TDS.
No PFIC for US citizens?
Only if you’ve surrendered your green card or were never a US citizen. If you’re still a US citizen living in India, PFIC rules still apply. See our section above.
SIPs become effortless.
Set up from any bank, any platform, any AMC. Full choice.
PPF and ELSS available.
Tax-saving options that were restricted or complicated as an NRI become fully accessible.

For broader investment planning, check our guide on financial planning after returning to India.

RNOR Status: The Tax Advantage Window

When you first return, you may qualify as Resident but Not Ordinarily Resident (RNOR) for 2-3 years.

During RNOR, your foreign income is not taxable in India. But Indian mutual fund gains ARE taxable (since it’s Indian-sourced income).

The strategic move: use the RNOR window to bring money from abroad into India (foreign income is tax-free), and then invest that money into Indian mutual funds as a resident.

Platforms and Tools for NRI Mutual Fund Investing

Here’s my honest assessment of popular platforms based on community feedback.

For Non-US/Canada NRIs

Kuvera – Free. Direct plans only. Clean interface. Works well for NRIs from UK, UAE, Singapore, etc. No demat account needed.

Groww – Hugely popular in India. Works for NRIs from non-US/Canada countries. Simple, intuitive app.

Zerodha Coin – Works for non-US/Canada NRIs with a Zerodha non-PIS demat account. Direct plans. Good integration with stock investing.

INDmoney – Offers mutual fund investing for NRIs. Also tracks US investments. Useful if you want a consolidated view.

For US/Canada NRIs

Direct with AMC websites – The most reliable route. Go directly to fund houses that accept US/Canada NRIs (Nippon, UTI, PPFAS, Sundaram, Tata). Apply through their NRI portal.

SBNRI – A platform specifically designed for NRI investors. Helps with AMC selection, KYC, and investments. Filters eligible funds for US/Canada NRIs.

Rupeeflo – Another NRI-focused platform. Offers KYC completion and a filtered mutual fund platform for US/Canada NRIs.

MF Utility (MFU) – Industry platform, works for NRIs. Basic interface but functional.

For Returning NRIs (Now Residents)

Once you’re back and have converted your accounts, use any platform you like. Groww, Kuvera, Zerodha Coin, and Paytm Money are all excellent for residents. See our guide on best mutual fund apps in India.

Mistakes NRIs Make with Mutual Fund Investments

Mistake 1: Not updating KYC after becoming an NRI

You moved abroad 3 years ago. Your mutual fund investments still show you as a “Resident Indian.” This is non-compliant with FEMA. Update your status with every AMC immediately.

Mistake 2: Investing through a resident bank account as an NRI

Once you’re an NRI, you cannot use your old resident savings account for investments. All transactions must go through NRE or NRO accounts. Using a resident account is a FEMA violation.

Mistake 3: Chasing past returns

“This small-cap fund gave 50% last year!” Past performance does not predict future returns. Start with index funds or large-cap funds, especially if you’re new to Indian market investing.

Mistake 4: Ignoring the PFIC issue (US NRIs)

Many US NRIs invest in Indian mutual funds without realizing the PFIC tax implications. By the time they discover it during tax filing, they face unexpectedly high US tax bills plus Form 8621 compliance headaches.

Mistake 5: Not filing Indian ITR

NRIs who have TDS deducted on mutual fund redemptions should file Indian ITR to claim refunds for excess tax deducted. Many don’t, and leave money on the table.

Mistake 6: Too many funds

Four to five well-chosen funds is plenty. I’ve seen NRI portfolios with 15-20 funds. That’s not diversification, that’s confusion. It makes tracking, rebalancing, and tax filing unnecessarily complex.

Mistake 7: Stopping SIPs during market corrections

The whole point of SIP is to invest through ups and downs. The members in our community who have built the largest mutual fund portfolios are the ones who kept their SIPs running during COVID, the 2022 correction, and every other market dip.

Mistake 8: Not converting to resident status after returning

If you’ve moved back to India and are still investing as an NRI through NRE/NRO accounts, switch to resident status. You’ll get better tax treatment (no TDS on equity funds), access to all AMCs, and simpler compliance.

Action Checklist

If You’re an NRI Living Abroad

[ ] Ensure you have a valid PAN card
[ ] Open NRE/NRO bank account if you don’t have one
[ ] Complete NRI KYC with CAMS or KFintech
[ ] Upgrade KYC to “Validated” status before April 30, 2026 deadline
[ ] Submit FATCA/CRS declaration
[ ] Identify AMCs that accept investments from your country of residence
[ ] Start with a test SIP (small amount) to verify the process works
[ ] If US-based: understand PFIC implications before investing
[ ] File FBAR if your Indian account balances exceed $10,000

If You’re Planning to Return to India

[ ] Continue existing SIPs until you return
[ ] Download all fund statements and transaction history
[ ] After return: inform all AMCs about status change to Resident
[ ] Update KYC with KRA (NRI to Resident)
[ ] Convert NRE/NRO accounts to resident savings accounts
[ ] Link new resident account to all mutual fund folios
[ ] Open account on a platform of your choice (Groww, Kuvera, etc.)
[ ] Explore fund options that were previously unavailable (ELSS, PPF, all AMCs)

If You’ve Already Returned

[ ] Verify all AMCs have your updated Resident status
[ ] Check that SIP debits are linked to your resident savings account
[ ] Review and consolidate your portfolio (remove duplicate/redundant funds)
[ ] Switch from regular plans to direct plans if not already done
[ ] Set up new SIPs in funds that weren’t accessible as an NRI
[ ] File ITR for the transition year – may need to report as NRI for part of the year

Frequently Asked Questions

Q: Can NRIs invest in mutual funds in India?

Yes. NRIs from most countries can invest in Indian mutual funds. NRIs from the US and Canada face additional FATCA compliance, which limits their AMC choices to about 10-15 fund houses.

Q: Do I need a demat account to invest in mutual funds?

No. Unlike stocks, mutual fund units can be held directly with the AMC in “Statement of Account” (SOA) format. No demat account required. Though some platforms (like Zerodha Coin) hold mutual funds in demat.

Q: Can I set up SIP from abroad?

Yes, if you have an NRE/NRO bank account with auto-debit facility. SIPs work exactly as they do for residents – a fixed amount is debited from your bank account monthly and invested automatically.

Q: What happens to my SIPs when I return to India?

Your SIPs continue. You just need to update your status with the AMC and link your new resident bank account for future debits. There may be a brief gap during the transition.

Q: NRE or NRO – which should I use for mutual funds?

If you want full repatriation flexibility (ability to send money back abroad), use NRE. If you’re investing income earned in India (rent, dividends), use NRO. Most NRIs investing from abroad use NRE.

Q: How are dividends taxed for NRI mutual fund investors?

Dividends are added to your total income and taxed at your slab rate. AMCs deduct TDS at 20% on dividends paid to NRIs. You can claim refund for excess TDS by filing ITR.

Q: Can OCI card holders invest in Indian mutual funds?

Yes. OCI holders have the same investment rights as NRIs for mutual funds. They need to follow the same KYC and FATCA compliance as NRIs.

Q: Is there a minimum investment amount?

Most mutual funds allow SIPs starting at Rs 500 per month. Lump sum minimums vary by fund but are typically Rs 1,000-5,000.

Q: What if I become an NRI after already investing as a resident?

Your existing investments stay intact. You need to inform all AMCs about your status change, convert your bank account to NRO, and update your KYC to NRI. Existing SIPs will need to be linked to your NRO account.

Q: How do I report Indian mutual funds on my US tax return?

Indian mutual funds are classified as PFICs. You need to file Form 8621 for each PFIC holding. The tax treatment is complex – consult a cross-border tax advisor. You can also claim Foreign Tax Credit for taxes paid in India under the DTAA.

Q: Should I invest in Indian mutual funds or US ETFs that track India?

For US NRIs: US-listed India ETFs (like INDA, SMIN) are simpler from a tax perspective. No PFIC issues, no FATCA hassles, no NRE/NRO accounts needed. The downside is you don’t get the same fund selection and granularity.

For non-US NRIs: Indian mutual funds directly are usually better. More choice, lower costs, and the tax complications are manageable.

Q: Can I invest in ELSS (tax-saving mutual funds) as an NRI?

Yes. ELSS investments qualify for Section 80C deductions. But the deduction is useful only if you have taxable income in India (like rental income or capital gains). If all your income is earned abroad, the 80C deduction doesn’t help practically.

A Final Thought

When I was working in the US, I started my first SIP in an Indian mutual fund in 2012. It wasn’t much – just Rs 10,000 a month. But I kept it going for years, through market ups and downs.

That discipline paid off handsomely when I returned to India in 2017. That mutual fund corpus was a safety net during my transition.

I’ve seen the same pattern with hundreds of community members. The ones who start early, invest regularly, and don’t panic during corrections are the ones who build meaningful wealth.

The process has its complications – especially for US NRIs. But the complications are in the setup, not the investing itself. Once your KYC is done, your bank account is linked, and your SIP is running, it’s largely automated.

The hardest part is starting. Everything after that gets easier.

Disclaimer: This guide is for informational purposes only and should not be considered investment or tax advice. Mutual fund investments are subject to market risk. Read all scheme-related documents carefully. Tax rules are subject to change – verify current rates with the Income Tax Department. US NRIs should consult a cross-border tax advisor before investing in Indian mutual funds due to PFIC implications. Always verify AMC policies for your country of residence before investing.

Sources: SEBI, RBI, AMFI, Income Tax Department of India, Zerodha, Groww, ClearTax, individual AMC websites. AMC acceptance policies for US/Canada NRIs are subject to change.

If you’re planning your move back, join our WhatsApp community at https://backtoindia.com/groups – 20,000+ NRIs helping each other with real, lived experience. It’s free and volunteer-run.

Investing in Mutual Funds for NRIs: Complete Guide (2026 Update)