For NRI Investors
Investing in India, from wherever you are
The basics
What NRIs can invest in, and how
Non-Resident Indians are permitted to invest in Indian mutual fund schemes on either a repatriable or a non-repatriable basis, subject to FEMA regulations and to the terms of each scheme. Investments are routed through an NRE or NRO bank account, and the choice between them affects what happens when you eventually want to take the money out of India.
There is no separate class of “NRI mutual funds”. You invest in the same schemes available to resident investors. What differs is the account the money comes from, the KYC that must record your NRI status, the FATCA and CRS declarations required, and the way tax is deducted on redemption.
Some fund houses apply additional requirements to investors resident in the USA and Canada, and a few do not accept them at all. That list changes from time to time, so it is checked at the point of investing rather than assumed.
NRE route
- Funded from income earned outside India
- Proceeds can generally be remitted abroad, subject to applicable rules
- Commonly chosen when the money is expected to leave India again
NRO route
- Funded from income earned in India, such as rent or dividends
- Repatriation permitted only within prescribed limits and procedures
- Commonly chosen when deploying money already held in India
Which account the money comes from decides what happens later
The route is chosen at the start, when the folio is opened. It is far easier to get right at the outset than to change afterwards.
NRE account
Funded from income earned abroad
Indian mutual fund scheme
Generally repatriable
Proceeds can usually be remitted abroad, subject to applicable rules.
NRO account
Funded from income earned in India
Indian mutual fund scheme
Generally non-repatriable
Remittance is permitted only within prescribed limits and procedures.
General information, not advice. The route available to you depends on FEMA rules, your country of residence and each scheme's terms. Confirm your position with your bank and a qualified adviser.
Eligibility, taxation and repatriation rules for NRIs vary by country of residence and are subject to FEMA and prevailing tax law. Investors resident in certain jurisdictions may face additional restrictions imposed by fund houses. Please confirm your position with a qualified adviser in your country of residence.
Documents
What you will usually need
- PAN card
- KYC recording NRI status, with overseas address proof
- Passport copy with the relevant visa or residence page
- FATCA and CRS declaration
- NRE or NRO bank account details
- Bank mandate for SIP debits
How we work with NRI clients
Five steps, handled remotely
- 1
Confirm status and route
We check your residential status, country of residence and whether the NRE or NRO route suits what you want to do with the money later.
- 2
Get the KYC right
KYC must record NRI status along with your overseas address. A KYC completed years ago as a resident will not do, and is a common cause of rejected applications.
- 3
Complete the declarations
FATCA and CRS declarations, passport and visa copies, and the bank mandate for SIP debits - all coordinated over email and video.
- 4
Build the plan, then invest
Goals, timelines and scheme categories discussed before anything is committed, then registration and the first instalment.
- 5
Stay on top of it from anywhere
Consolidated portfolio access through the client portal, and a single point of contact who already knows your file.
Where our NRI clients are
Working across time zones
Investors resident in the USA and Canada should note the additional fund house requirements described above.
Already hold investments in India?
Many NRIs have folios opened years ago as residents, sitting with outdated KYC and old bank mandates. A review will tell you what is still active, what needs updating and whether the holdings match what you are trying to do now.
Request a Free Portfolio ReviewNRI FAQ
Questions NRI investors ask
Can an NRI invest in Indian mutual funds?
Yes. NRIs are permitted to invest in Indian mutual fund schemes on a repatriable or non-repatriable basis, subject to FEMA regulations and the terms of each scheme. Investments are made through an NRE or NRO account and require KYC that reflects your NRI status.
What is the difference between investing through an NRE and an NRO account?
Broadly, investments made from an NRE account are typically on a repatriable basis, meaning the proceeds can be remitted abroad subject to applicable rules. Investments from an NRO account are generally on a non-repatriable basis, with repatriation permitted only within the limits and procedures prescribed by regulation. Your bank and tax adviser can confirm what applies to your situation.
Can an NRI start a SIP in India?
Yes. Once KYC and the bank mandate are in place, an NRI can register a SIP in the same way as a resident investor, with the instalment debited from the NRE or NRO account linked to the folio.
What documents does an NRI need to start investing?
Typically a PAN card, KYC recording NRI status, proof of overseas address, a copy of the passport and relevant visa or residence page, a FATCA and CRS declaration, and NRE or NRO bank account details. Individual fund houses may ask for additional documents.
Are there restrictions for NRIs based in the USA or Canada?
Some fund houses accept investments from NRIs resident in the USA and Canada with additional documentation, and others do not accept them at all, largely due to FATCA-related compliance requirements. The list of participating fund houses changes from time to time, so this needs to be checked at the time of investing.
How is an NRI taxed on mutual fund investments in India?
Gains are taxable in India as per the rules applicable to the scheme type and holding period, and tax is generally deducted at source for NRI investors. You may also have reporting or tax obligations in your country of residence, and a Double Taxation Avoidance Agreement may apply. Please confirm your position with a qualified tax adviser in both countries.
An important note on advice
Everything on this page is general information about how NRI investment in Indian mutual funds works. It is not personalised investment or tax advice, and it does not take your individual circumstances into account. Tax, reporting and repatriation obligations vary by country of residence and change over time, so please confirm your own position with a qualified adviser in India and in the country where you live before investing. Read our full disclaimer.