mutual funds NRI Investing

In which mutual funds can an NRI invest in India?

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As a Non Resident Indian (NRI) are you are planning to invest in mutual funds? The question that you are probably asking is:

“In which mutual funds can I invest?”

Now see, if you are a US or Canada based NRI, most of the mutual funds in India will not accept investments from you. But that is slowly changing.

Few mutual fund houses currently accept investments from US and Canada based NRIs. These are:

  • Birla Sun Life Mutual Fund
  • DHFL Pramerica Mutual Fund
  • L & T Mutual Fund
  • PPFAS Mutual Fund
  • SBI Mutual Fund
  • Sundaram Mutual Fund
  • UTI Mutual Fund

There are others too who are evaluating and expected to join this list soon.

If you plan to invest in schemes offered by HDFC, ICICI, Reliance, DSP BlackRock, currently you cannot.

Read more: Are ETFs and Index Funds relevant for you?

What is the documentation required to invest in mutual funds?

The documentation is standard for almost all investors. The KYC, Additional KYC and FATCA details are mandatory, not just for NRIs but for any Mutual Fund investor.

If you are doing an offline, paper-based investment as an NRI, some of the fund houses may ask you to submit additional declarations and documents.

The same holds true for online investment through the AMC websites. However the declarations would also be submitted online.

Update Dec 30, 2016:  SBI requires a one time physical form application along with a declaration the format of which is available on its website. Subsequently, you can invest online.

Birla SL MF accepts online application but needs also needs a declaration in its Annexure A, format of which has to be requested from the AMC.

There is also the industry aggregator MFU.  With MFU, you generate a Common Account Number (CAN) which captures all your holding details along with the necessary documents. It is a one time offline process but allows you to invest and modify your investment details for 25 odd AMCs through a single channel.

You can also use Unovest, an online portal to invest in direct plans of mutual funds. You can also view your consolidated mutual fund holdings as well as transact online. In case you do not have a CAN, you can also generate your CAN application form online from Unovest.

What about NRIs from the rest of the world (those not from US and Canada)?

Well, NRIs from other countries can invest in almost any scheme of any mutual fund in India. There can be some restrictions specific to a fund house but that would be rare. So, if you are an NRI from the Middle East, Singapore, HongKong, UK or Europe, you are free to invest in any mutual fund scheme subject to the necessary documentation.

However, don’t rush to invest in any mutual fund scheme. Plan your investments in line with your financial goals.

Read more: 5 questions to ask by an NRI investing in India

41 thoughts on “In which mutual funds can an NRI invest in India?”

  1. Hi Vipin,

    thanks for the information. As per your article, i see NRI’s residing in US can invest in SBI mutual fund. But when i login to the website, i see there a checkbox :

    I hereby confirm that I am not a U.S. person or person resident in Canada.

    So, i want to confirm , if the info is correct.

  2. I had invested for 3 years in Indian MF when I was resident Indian. I am now deputed in US for a year and have not invested after becoming NRI. . What is suggested advice of keeping the MF’s to sell completely or keep as-is without any transaction till I return back to India? From your blog it says savings bank accounts to be converted to NRO account.

    • Since you will be out of India for over 182 days, you will be considered an NRi. Not sure if this stay is temporary or a long one. If a longer one, it would be better to update records and inform your respective banks as well as MFs.

  3. Hi Vipin,

    Very informative article indeed – many thanks.

    I’m an Australian Citizen & NRI (OCI) interested in investing in India through mutual funds with a view to being invested over 5-10 year period.

    Would appreciate your thoughts/recommendations on possible funds with consustent results in both growth & income oriented funds.

    Many thanks in advance.

  4. I am Canadian Citizen & NRI (OCI) but living in the UAE. Will I be allowed to invest in DSP Black Rock?
    Will I be considered Canadian or Resident in UAE.
    I am non-resident of Canada.
    Thanks

  5. Hi Vipin,

    My question in akin to a few that have already been asked and answered, so apologies for any overlap.

    I am a foreign citizen, with an OCI card, and have moved to India 4 months with the intent to settle. Grateful if you could help me with the following queries (and provide pointers to any RBI issued guidelines as most information I find on the Internet is contradictory):

    1) Will I be considered a resident only after I stay in India for more than 182 days or does the fact that I intend to settle in India qualify me for the resident status?

    2) Should my NRE FD’s be converted to resident deposits or can they be held until maturity?

    3) Can I Invest in equity/MF as a resident Indian (with a resident account)?

    From everything I have read so far, the advice appears contradictory – OCI/NRI are only allowed to invest through PIS which will not be possible if I convert my NRE accounts to resident accounts!

    Thanks for the support.

    Ray.

    • Dear Ray
      Thanks for asking. Heres my response:

      1) Will I be considered a resident only after I stay in India for more than 182 days or does the fact that I intend to settle in India qualify me for the resident status?
      THE INTENT TO STAY DOESNT MATTER. YOU WILL HAVE TO COMPLETE THE STAY OF MINIMUM 182 DAYS. EVEN IN THAT CASE YOU MAY NOT BECOME A FULL RESIDENT BUT A RESIDENT BUT NOT ORDINARILY RESIDENT OR RNOR. BEST TO CHECK WITH A CHARTERED ACCOUNTANT ON THIS.

      2) Should my NRE FD’s be converted to resident deposits or can they be held until maturity?
      I GUESS YOU CAN CONTINUE TILL MATURITY. DO CHECK WITH YOUR BANK TOO.

      3) Can I Invest in equity/MF as a resident Indian (with a resident account)?
      SINCE YOU HAVE INTENTION TO INVEST AS RESIDENT, YOU SHOULD INVEST ONLY AFTER YOUR TAX STATUS IS CHANGED TO RESIDENT.

      Here’s a link you might want to consider reading the OIFC guidebook for taxation in India- https://www.mea.gov.in/images/pdf/OIFCPublication2009GuidebookonTaxationforOI.pdf

      Thanks
      Vipin

  6. Dear Vipin,

    I am an OCI from US but I am permanently settled in India (since last few years). Can I apply in Indian based MFs ? will I be treated at par with Indian resident as far as tax is concerned. Thanks for your help.

    Please advise.

    • Dear Ganesh

      You can definitely invest in some of the mutual funds with the tax benefits. However, to know if you can invest in any mutual fund, let me know what would be your resident and tax status in the US as of now? What is your resident and tax status in India? Have you been filing income tax returns in India?

      This would help in getting the answer.

      Regards

  8. Vipin, as an Indian student in Canada can I invest in Indian Mutual Funds? Where can I get good advise on the same.

  9. Vipin,

    This was an extremely clear article – i struggled to find this information laid out elsewhere. Thank you for that

    I do have a follow up question – if in invest in the above mutual funds from my NRE account, is my assumption correct – that the fund original and returns are repatriable?

    Thanks,

  10. Hi Vipin,
    Thanks a lot for informative article .
    I need help with some specific questions:
    I will be moving abroad on an assignment for few years , but i will be on deputation and my salary will get credited in local bank account
    a) Does my current MF holding will get impacted with my change of status?
    b) Can i keep investing in MF , if the proceeds are from my indian assets (like land sale ,PF)?
    c) What will be my tax liability on MF earnings ?

    Thanks
    Hameed

    • Dear Hameed

      In my view

      a) If you stay for more than 180 days in a stretch in any financial year, you will be treated as an NRI. Considering that you will out for a few years, this will mean that you will surely be an NRI and then you cannot operate a savings account in India. Your savings account should be converted into NRO account by your bank. You should also inform your mutual funds about your change in status.
      b) Yes you can keep investing. However, if you are moving to US/Canada then you might not be allowed to invest in certain funds.
      c) The tax liability of an NRI is no different from that of a Resident India.

      Hope this helps.
      Thanks.

  11. I am in the Merchant Navy and my Company Head office is based in Vancouver Canada. I am holding an Indian passport and stay in India, have PAN no, adhere card everything. My salary is remitted into my NRE account.

    Pls guide how can I invest in Mutual Funds without violating FATCA.

    • There are certain funds, as mentioned in the article, that accept investments from Canada based NRIs. In any case, when you make an investment, your FATCA details are captured and if you are not compliant, your investment will not be accepted or additional information will be asked for by the fund house.

      There are several online platforms that you can use to invest. You can get in touch with a SEBI Registered Investment Adviser for investment advice. Sample this: http://www.vipinkhandelwal.com/advisory-services/

  12. I am u s citizen of Indian origin
    Can you suggest ways to invest in India with specific names of mutual funds and
    The names of brokers
    Nitya prabhu

    • Dear Nitya

      The names of fund houses in which you can invest are already listed in the post. As for specific schemes, naming them constitutes advices and can only be provided by a professional such as an investment adviser.

      Thanks

  13. Please guide me in case of a client who was a minor when his grandfather invested/gifted some amount in UTI scheme for him. In between his parents shifted to USA and settled there. The child has now become major but does not have any Indian Pan, Bank account or address proof. The grand father is deceased. How can he approach UTI to claim the amount of investment. Can he apply for Pan Card, Bank account in India> He and his parents hold OCI cards.

    • Dear Mr. Desai, It is not clear in whose name the investment has been made. The minor child with grandfather as guardian? or some other holding pattern.
      If the minor child and guardian combination is there, then an application will have to be made to UTI to change the status to major and the relevant documents will have to provided. It is best to talk to UTI in this case and know the specifics.

      A person with OCI cards can apply for PAN. Please see this. https://tin.tin.nsdl.com/pan/form49AA.html.

      Hope this helps. Thanks.

  14. Hi Vipin,
    It ‘s a Nice article, I have the below question
    Can an NRI invest in the name of wife , who is a resident indian ,in the Indian Mutual funds ?

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