• NRIs have been granted general permission by RBI for investing in units of the schemes of domestic mutual funds. However PIOs need to attach a copy of PIO card with the application forms at the time of investing.
• Investment can be either through online mode or through an appointed Power of Attorney (POA) in India.

Few countries such as US and Canada have restricted investments by NRIs in Mutual Funds without relevant disclosures. Mutual fund houses have to undergo compliance requirement under Foreign Account Tax Compliance Act (FATCA )

Documents required to fulfill KYC requirement are as follows-

• Duly filled CKYC form by investor
• Copy of PAN card
• Address proof
• One passport size photograph
• Copy of Passport
• Overseas Address proof
• Copy of Bank Statement

Note: All above mentioned documents should be self attested as per guidelines of respective Asset management Company (AMC). If the concerned fund house or bank insists on an in-person verification, then you may have to visit the Indian embassy in your resident country.

NRIs will not have to pay double taxation if India has signed DTAA (double taxation avoidance treaty) with the respective country.

For e.g. India has signed DTAA with US. Hence, NRI can claim tax relief in US if he/she has already paid taxes in India.

• Details of local bank account will only be required, any foreign bank details will be rejected.
• Tax will be deducted at the source on the capital gains made on investment
• Your investment into mutual funds carry the right of repatriation of the amount invested and amount earned, only until your remain NRI
• The compliance requirement in the USA and Canada are more stringent which requires adherence to FATCA guidelines.

India is one of the fastest growing economies of the world. Hence in the long term, the return on investment would be worth it and there is certainly no reason for not investing.

Plus, if you are already investing in your current place of stay, this will enable geographical diversification resulting in better risk management.

Forex gains, easy online investment procedure and tax efficiency from indexation are major advantages of mutual funds.

Moreover, through investment in India you can also play an active role in the India economic growth story.