Everyone wants a better career opportunity ahead in life and for the same many Indians migrate abroad. Even though they went there but their dreams of returning to their home country still breathe to meet their family. In most cases, the migrants have dependents such as a father, mother, or any close relation left in India. In the presence of family taking up the decision to invest in India can be a wise decision for future aspects. But the question remains the same, Is NRI investment in mutual funds a good deal?
How come NRIs invest in mutual funds in India?
Why not invest in mutual funds? Mutual funds are the best way for an NRI or non-resident Indian or a person of Indian origin to support their country’s growth and benefit harvest. Still, there is no separate mutual fund category invented for investments by NRIs but plenty of AMCs or Asset management companies provide NRI-aimed funds. All these investments are enclosed by some terms and conditions for the best mutual funds in India. NRIs get permission to invest in Indian funds till the period they adhere to the conditions of the Foreign Exchange Management Act (FEMA).
Even a few mutual fund houses don’t accept applications for mutual funds sent from Canada or US as it needs loaded paperwork under the Foreign Account Tax Compliance Act (FATCA). But still, fund houses are allowing Canadian or US residents investment in India. Some of these houses may include Nippon India mutual fund, UTI mutual fund, L &T mutual fund, and PPFAS mutual fund.
What is the basic requirement to invest in India by NRIs?
NRIs need to follow the regulatory needs to invest in mutual funds in India. These requirements include:
- KYC before they will get permission to invest.
- Canada and US have restricted investments for mutual funds through NRIs without approved disclosure. They should clear the matter under the guidance of qualified advisors on the feasibility of investing in mutual funds in India.
By meeting the requirements NRIs can get the advantages and comfort of resident Indian investors during the investment procedure. The investment can be via SIPs and even they can choose a dividend or growth option with the facility to switch as per their choice. Not only this but they can exile the redemption actions as per their convenience.
Once you are thorough with the process, you can start investing in equity funds, hybrid, or debt funds as per your goal and capability of risk tolerance. You can get detailed mutual fund advisory from experts at SBNRI. You can download SBNRI App from the Google Play Store or App Store to ask any questions related to mutual fund investment, NRI account opening online and tax filing in India.
Advantages of investments in the mutual funds in India for NRIs may include:
Flexible management of funds online
The digital facility to get the investments done for mutual funds, track and manage despite of location across the globe. Online support facilitates you to purchase, redeem, and switch to diversified schemes of mutual funds with the additional helping hand for easy withdrawal action attempts and systematic transfer too.
Here you don’t need to fetch the hassle of issuing cheques, filling in, and submitting hardcopy of the forms or Demand drafts. The CAS or consolidated account statement updates can reach you via emails with access to your account checkups without being there in the country. Even the AMCs disclose the portfolio holdings to their investors to make them updated with the modifications.
Currency Conversion Profit
The currency from international to Indian can generate a handsome profit for investors. For example, as 1 pound=100 Rs, Incase NRI invests 2000 pounds in a mutual fund in India with the mentioned exchange rate. The conversion can be the rupee appreciation against the pound as per calculations. No doubt it’s a great deal.
When such a beneficial deal is in hand then NRIs can opt for future wealth schemes as per their budget to invest in the mutual funds. The right decision to mutual funds with a wider assortment of mutual fund schemes can make you stable in coming years.