Why Should You Invest in Indian Mutual Funds as an NRI?
How NRIs can invest in mutual funds in India is a question many overseas Indians ask as they look to build wealth in their home country. If you’re living abroad and wondering how to grow your money in Indian markets, mutual funds offer a smart, regulated, and accessible path to do just that.
Benefits of Mutual Fund Investments for NRIs
Access to India’s booming economy
Higher returns compared to traditional savings abroad
Easier wealth management in INR for your family
Repatriable income with NRE accounts
✅ Can NRIs Invest in Mutual Funds in India?
Yes, you can. NRIs and OCIs are legally allowed to invest in Indian mutual funds under FEMA guidelines, provided you follow proper documentation and use NRE/NRO accounts.
📌 Few Key Points to Remember
You must complete KYC with NRI-specific documents
Some AMCs restrict investors from the USA/Canada due to FATCA
📋 What You Need to Get Started
🗂️ Required Documents & Accounts
Here’s what you’ll need to invest:
✅ PAN Card
✅ NRE/NRO Bank Account
✅ Passport with Visa/OCI
✅ Overseas address proof
✅ FATCA Declaration
✅ Completed NRI KYC
📝 Tip: Most platforms allow video KYC for NRIs now.
🔍 Step-by-Step Process for NRIs to Invest
Step 1: Choose Your Investment Route
You can invest directly through AMC websites, robo-advisors, or mutual fund distributors.
Step 2: Open an NRE or NRO Account
NRE: Funds are repatriable and tax-free in India
NRO: Non-repatriable, used for income generated in India
Step 3: Complete Your KYC Process
Make sure your KYC is done with your NRI status and FATCA form.
Step 4: Select the Right Mutual Fund
Choose funds based on your goals:
Growth-oriented equity funds
Safe debt or hybrid funds
ELSS for tax-saving if you file ITR in India
Step 5: Start Investing Online
Log into your chosen platform and begin your first SIP or lump sum using your linked NRE/NRO account
💰 Tax Implications for NRIs
Understanding tax is critical when you invest.
📊 NRI Mutual Fund Taxation Table
| Type of Fund | Holding Period | Tax | TDS Applicable |
|---|---|---|---|
| Equity | > 12 months | 10% LTCG | ✅ Yes |
| Debt | > 36 months | 20% LTCG (with indexation) | ✅ Yes |
| Hybrid | Varies | Based on equity/debt portion | ✅ Yes |
💡 LTCG = Long-Term Capital Gains
🧾 TDS = Tax Deducted at Source
Additional Tax Notes
TDS is auto-deducted; file ITR to claim refunds.
Use DTAA (Double Taxation Avoidance Agreement) if your resident country has one with India.
Top Platforms NRIs Can Use
🖥️ Best Investment Platforms for NRIs
1. Zerodha Coin
2. Kuvera Global
3. ICICI NRI Services
4. Scripbox NRI Accounts
🔗 Internal Link: Explore the best platforms for mutual funds
🔗 External Link : SEBI’s list of mutual fund houses
🙋 Common FAQs on NRI Mutual Fund Investments
❓ Can NRIs from the USA/Canada invest?
Yes, though some AMCs restrict it due to FATCA. Funds like UTI, L&T, Sundaram allow with extra compliance.
❓ Can I start SIPs as an NRI?
Absolutely! You can set up SIPs with your NRE/NRO account.
❓ Are gains repatriable?
Yes, if invested via an NRE account, they can be fully repatriated.
🎥 YouTube Videos (H5)
1. How NRIs Can Start SIPs in India
2. Mutual Fund Investment for NRIs – Simplified
📝 Conclusion: Take Control of Your Financial Future
Now that you know exactly how NRIs can invest in mutual funds in India, you’re ready to take the next step.
Start today by:
Choosing your investment route
Completing your NRI KYC
Planning your financial goals in INR
If you need guidance, don’t hesitate to contact us at FinSecurePro. As a mutual fund distributor, we’re here to help you invest confidently from wherever you are in the world.