How Can Non-Resident Indians Invest In Mutual Fund Schemes In India

As a Non-Resident Indian, If you are thinking about investing in a mutual fund scheme in India, you must ensure to take the guidance of financial advisor in bilaspur. They will give you a strong financial plan for investing in a mutual fund scheme in India.


Mutual Funds are the best investment choices for Non-Resident Indians to receive profits and engage in the growth of the nation. Non-Resident Indians can spend in a host of Mutual Fund schemes as per their financial objects and purposes. 

Non-resident Indians are authorized to spend in mutual funds, based in India, subject to agreement with the Foreign Exchange Management Act i.e. (FEMA). Here are some important factors that consider as essential points which include the rationale, procedural levels, formalities to be followed with, and the tax procedure in the state of NRI investment in mutual funds.

Investment Rationale: India’s economic growth narrative remains to attract investors globally. Many institutional investors, particularly foreign institutional investors derive enhanced returns from spending in Indian stocks. Non-Resident Indians can change their portfolio by allocating a specific part of their investment to mutual fund holdings in India.

Based on their risk appetite, the NRIs can pick from the high risk-return equity plans or the comparatively low risk-return debt plans. The important point should be kept in mind that an equity-oriented mutual fund relates to plans in which higher than 65% of the portfolio is allocated towards investment inequities.

There are some important benefits of choosing for Mutual Funds in India:

  1. Digital Method: The digital investment method has helped to track, manage, and spending in mutual fund units as per one’s ease, irrespective of one’s physical spot. Consequently, Non-Resident Indians deploy in different living countries can purchase and redeem units, change the distribution of assets, conduct important transactions such as withdrawal, or well-organized investments in mutual funds rolling out of their residence country, India. This has reduced the requirement for the physical appearance of the investor. Asset management companies are mandated to reveal portfolio investments and give intermittent account statements to assist investors to stay up to date.
  2. Foreign Exchange Profits: Besides the capital gratitude on the sale of mutual fund units, Non-Resident Indians have also relished greater profits from a constant depreciation of the rupee.

Here are some essential procedural factors which are to be followed by Non-Resident Indians to spend in mutual funds which are given below:

Opening the Essential Account with a Bank: It is crucial to know that mutual funds are not permitted to acquire direct investments in international currency. Consequently, Non-Resident Indians require to open a rupee-denominated NRO account that is a non-repatriable basis or other is NRE account that is a non-repatriable basis with an authorized Indian bank to invest. 

KYC NormsAs a member of the KYC method, Non-Resident Indians would be needed to given copies of passport with all the required valid details of name, date of birth, photo, proof of living address that is outside India, bank statement. In some cases, the authorized agents of the fund homes might undertake an in-citizen verification.

Process of Investment: Since the Non-resident Indian is actually present in a country of residence other than India, in that case, he/she has the choice to spend in mutual funds either by self or direct method or indirectly by appointing a valid power of lawyer. 

Direct Method: In this process, Non-Resident Indian is allowed to conduct transactions by conventional banking channels. In addition, the investment must reveal information on the repatriation or non-repatriation status of the proceeds. Additionally, banks might lead an in-person verification, which can be accomplished by visiting the Indian embassy in the Non-Resident Indians living country.

Power of Attorney: In this case, investment decisions are made by the holder of the power of attorney. If it is necessary to use it, it is imperative that KYC documents are certified by both the Non-Resident Indians investor and the Power of attorney holder.

Disclosure of sources of funds: NRIs must confirm the source of funding for the investment. In the case of payment by cheque or draft, you must provide a  remittance certificate for incoming money transfers. Alternatively, a bank letter will also adequate as confirmation.

Redemption: In general, AMC transfers the proceeds on redemption after deducting any required withholding tax on capital gains. Some banks allow transferring the amount to the NRO / NRE account. The proceeds can also be realised by the draft.

In this way, It should be remembered that Mutual fund investments are subjected to market risks, please read all documents related to the scheme carefully before investing. And also, take the advice of a financial consultant in bilaspur. They provide customized Financial Planning and Investment solutions. For more information visit our website:

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