nri investment in mutual funds in India
Mutual Funds pool money of various investors to purchase a wide variety of securities while pursuing a specific goal. Selection of Securities for the purpose is done by specialists from the field. Returns generated are distributed to the Investors. We will help you determine which types of funds you need to meet your investment goals. This may include the following types of funds:
1. Debt : Liquid schemes, Income schemes, G-sec schemes, Monthly Income Schemes etc.
2. Equity : Diversified Equity Schemes, Sector Schemes, Index Schemes etc.
3. Hybrid Funds : Balanced Schemes, Special Schemes - Pension Schemes, Child education Schemes etc.
We help you identify an appropriate mix of Mutual Fund schemes for your portfolio using asset allocation strategies. You can invest in various schemes of multiple mutual funds with decent performance record.
Process of investing in Mutual Funds for NRIs
The process is very simple:
- We send you the Mutual Fund forms through email (or Click here to download Mutual Fund Application Forms)
- You simply take a print out & fill the form.
- Attach a cheque drawn on your NRE or NRO account along with the application in the name of the Mutual Fund.
- Attach a photcopy of your PAN card.
- Send it to our Mumbai office. (Click here for address)
- We submit the same to the respective Mutual Fund.
- Once your investment is made, we will forward the acknowledgment slip to you.
Process for Redemption
NRIs can redeem their units by signing on the tear-off portion of the account statement and mailing it to us or by sending a letter requesting redemption with the signatures and the amount to be redeemed. The redemption request would be processed at the applicable NAV based price. The redemption proceeds will be sent directly to the NRI's respective NRE/NRO account.
Advantages of investing in Mutual Funds
Professional Money Management and Research
Mutual funds are managed by professional fund managers who regularly monitor market trends and economic trends for taking investment decisions. They also have dedicated research professionals working with them who make an in depth study of the investment option to take an informed decision.
Risk Diversification
Diversification reduces risk contained in a portfolio by spreading it. It is about not putting all your eggs in one basket. As mutual funds have huge corpuses to invest in, one can be part of a large and well-diversified portfolio with very little investment.
Convenience
With features like dematerialized account statements, easy subscription and redemption processes, availability of NAVs and performance details through journals, newspapers and updates and lot more; Mutual Funds are sure a convenient way of investing.
Liquidity
One of the greatest advantages of Mutual Fund investment is liquidity. Open-ended funds provide option to redeem on demand, which is extremely beneficial especially during rising or falling Markets.
Reduction in Costs
Mutual funds have a pool of money that they have to invest. So they are often involved in buying and selling of large amounts of securities that will cost much lower than when you invest on your own.
Tax Advantages
Investment in mutual funds also enjoys several tax advantages. Dividends from Mutual Funds are tax-free in the hands of the investor (This however depends upon changes in Finance Act). Also, capital gain accrued from mutual funds investments for period of over one year is treated as long term capital appreciation and is taxed at a lower rate of 10% without benefit of indexation or 20% with benefit of indexation.
Other Advantages
Indian Mutual fund industry also presents several other benefits to the investor like: transparency - as funds have to make full disclosure of investments on a periodic basis, flexibility in terms of needs based choices, very well regulated by SEBI with very strict compliance requirements to investor friendly norms.
Investment in Mutual Funds involves risk and the offer documents of the funds should be read for further details.
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