Yes, Non Resident Indians (NRI) and Persons of Indian Origin (PIO) can invest in Indian Mutual Funds on a full repatriation as well as non-repatriation basis.

NRIs need to fulfill all KYC and regulatory requirements before investing in Mutual Funds.

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A few countries such as US and Canada have restricted investments by NRIs in Mutual Funds without relevant disclosures. Some AMCs do not accept mutual fund applications from NRIs in Canada and the USA.

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Yes, NRIs can invest through SIP.

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Yes, NRI can opt for both Growth & Dividend options while investing in Mutual Funds in India.

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The redemption proceeds received in NRE/FCNR A/c can be repatriated. But it can not be repatriated from NRO A/c.

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NRIs can choose from three major types of accounts. As an NRI in India, you can open an NRE (Non-Resident External) Account, NRO (Non-Resident Ordinary) Account and FCNR (Foreign Currency Non-Resident) Deposit Account.

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An NRE(Non-Resident External) Account is a rupee-denominated account that NRIs can open. They can use the NRE account to deposit their foreign currency earnings. The advantage of an NRE account is that it has high liquidity and allows for full repatriation of funds from the account to the NRI’s country of residence when required.

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An NRE account can be opened by an NRI, Person of Indian Origin(PIO) or a person who has become a non-resident under FEMA.

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No

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FCNR stands for Foreign Currency Non Resident Account. This is a kind of fixed deposit account opened for depositing income earned overseas. The account is held in foreign currency.

The account can be opened by Non-Resident Indians (NRI) and Overseas Corporate Bodies (OCB).

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A Non-Resident Ordinary (NRO) Account is a popular way for many Non-Resident Indians (NRIs) to manage their deposits or income earned in India such as dividends, pension, rent, etc. This account allows you to receive funds in either Indian or foreign currency.

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The Foreign Exchange Management Act (FEMA) is legislation which regulates the inflow and outflow of foreign exchange. The Central Government of India formulated the same to encourage external payments and across the border trades in India.

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i. NRIs need to open NRE, NRO or FCNR A/c with Indian Bank.

ii. NRIs need to submit a Mutual Fund Application along with the KYC Documents.

iii. KYC documents include latest Photo, attested photocopy of Pancard, Passport, Address proof of Outside India and Bank Statement.

iv. NRI investors can select a POA holder to invest in his/her behalf. Signature of Investor and POA holder should be present in the document.

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i. NRI investors need to complete the KYC process along with investment proposals.

ii. If payment is made by a Cheque or Demand Draft then Foreign inward remittance certificate or letter from the bank is required.

iii. At the time of Redemption TDS is applicable as per highest tax bracket and remaining sale procedure gets credit in Bank A/c. If the investment is non-repatriable investment then proceeds get credited to NRO A/c only.

iv. NRI can submit an income tax return and get a refund of the excess TDS amount paid.

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i. Equity Taxation - 15% on short term and 10% on long term above Rs 1lakh without any indexation.

ii. From FY 2023-24 Capital Gain in All Mutual Funds having equity exposure less than 35% will be taxed as per applicable slabs, irrespective of the holding period & no indexation benefit will be available on the long-term capital gain. 

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For Equity oriented Mutual Fund TDS is deducted 10% for LTCG and 15% for STCG.

Other than equity mutual funds TDS rate is 30% in both STCG & LTCG.

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Any Individual, inclusive of NRI, if total Income exceeds 2.5 lakhs need to submit income tax return in India.

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India has Double Taxation Avoidance Agreement (DTAA) with more than 90 countries across the globe. So if NRI residing in a country which has signed DTAA with India, investors can avoid double taxation.

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Resident and Ordinarily Resident in India(ROR).

Resident but not Ordinarily Resident in India(RNOR).

Non Resident (NRI).

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An HUF can become NRI provided all the members of coparceners become NRI.

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