NRI Mutual Fund Investment Options In India

Looking for investment options in India? Wondering if NRIs can invest in Indian Mutual Funds? Relax, we’ve got the answers you’re looking for. We will tell you why you should invest in India, how you can invest in India and also about the best ways to invest in India for good returns.
 

Note: If you want a free personal wealth coach to help you through this. Get the Cube App.

Why Invest in India?

India is one of the fastest-growing economies in the world and has huge potential for growth. The next benefit is that you will benefit from rupee appreciation. Going by the current state of the Indian Economy there is immense potential for profit-seeking NRI investors and international investors in general.

Can NRIs Invest in India?

Yes, there are rules and regulations governing NRI Investments in India but you can easily invest. You just have to adhere to the Foreign Exchange Management Act also known as FEMA. There are also a limited number of funds that accept investments from NRIs.

 

You can either invest in mutual funds on a repatriable basis or on a non-repatriable basis. If you wish to invest in a repatriable basis you need an NRE/FCNR account with an Indian Bank. If you’re investing on a non-repatriation basis you’ll need an NRO account or NRE/FCNR as well.

 

Some examples of funds that accept NRI Investments include:

  • Sundaram Mutual Fund

  • Birla Sun Life Mutual Fund

  • ICICI Prudential Mutual Fund

  • DHFL Pramerica Mutual Fund

  • L&T Mutual Fund

  • PPFAS Mutual Fund

  • SBI Mutual Fund

  • UTI Mutual Fund

A Cube Wealth Coach can explain the basics for free, just email wealth@bankoncube.com.

What Are The Benefits of NRI Investments in India?

If you’re interested in returning to India it’s a great way to participate in the economy while growing your wealth. You will also be able to diversify (assuming you’re invested in your current nation of residence as well). It is also easy to manage these investments online versus other investment modes that require your physical presence.

How Are NRI Investments Done in India?

Indian Asset Management Companies cannot accept foreign currency for payments. Therefore you must start by creating an NRO/NRE/FCNR account.

Direct Investments

You can invest directly in Indian Mutual Funds by getting your KYC done. You will need basic documents like your PAN Card, Passport and Bank Account number. You may need to visit the Indian Embassy once in person. To get personalized advice on this please connect with the Cube Wealth team on wealth@bankoncube.com.

Investments Through Power of Attorney

NRIs can invest in India using power of attorney as well. Essentially you’re giving someone else POA to invest on your behalf.

Investing Through Cube Wealth

This is the easiest way for NRIs to invest in India. It’s simple, automated and you get advice from the World’s Best Wealth Coaches. 

  1. Download the Cube Wealth App

  2. Talk to our Wealth Coaches

  3. Start investing in your phone

Mutual Funds Taxation for NRIs

If India has signed the DTAA (Double Taxation Avoidance Treaty) with your country then you won’t have to pay twice the tax. 

You will have to pay tax on your capital gains though – as you would have expected. 

Equity Funds Are Taxable based in holding period:

  • Short Term Capital Gains @ 15%. 

  • Long Term Capital Gains > Rs 1L @ 10%

Debt Fund Are Also Taxable Basis holding period:

  • Short Term Capital Gains @ 30%

  • Long Term Capital Gains > 3Yrs @20%

Want to know where to invest money for good returns in India?  Contact a Cube Wealth Coach by sending an email to wealth@bankoncube.com.

Want to start investing?

We know it’s a big decision to start investing, to change advisors or to try new investment options. That’s why we give you the option of a free personal phone consultation.

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