Non Resident Indians (or NRIs) can invest in stocks in India including via mutual funds.
The question is can an NRI invest in any Indian mutual fund or are there restrictions?
Well, NRIs from most other countries (except US and Canada) 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, you are free to invest in any mutual fund scheme subject to the necessary documentation, if any.
However, when it comes to US and Canada based NRIs, the going is not so easy.
If you are a US or Canada based NRI, most of the mutual funds in India will not accept investments from you. Having said that, you can find suitable options even within those that accept investments.
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
(list is in alphabetical order)
However, HDFC, ICICI, Reliance, Quantum, DSP BlackRock, etc. do not accept investments from US and Canada based NRIs.
What is the documentation required from NRIs to invest in mutual funds?
For a new investor, the documentation is standard. The KYC, Additional KYC and FATCA details are mandatory, not just for NRIs but for any mutual fund investor.
Now, some of the fund houses may ask you to submit additional declarations and documents.
For example, Birla Sunlife MF wants a declaration in its Annexure A (in paper) for every transaction that you make. Even if you make online investment the declarations have to be filed in physical paper form.
SBI MF 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.
Sundaram MF, PPFAS MF and L&T MF do not need any additional documentation. You can invest in any of their funds even using the online channel.
However, don’t rush to invest in any mutual fund scheme. Plan your investments in line with your financial goals and invest accordingly.
Invest in mutual funds online with Unovest
NRIs can also use Unovest to invest in direct plans of 26 mutual funds. You can also view your consolidated mutual fund holdings as well as transact online.
You can generate a one time Common Account Number or CAN and start to transact online. In case you do not have a CAN, you can also generate your CAN application form from Unovest or generate an electronic CAN.
Disclaimer: The fund house names are provided for information only and should not be considered as advice or recommendations.