Nri Mutual Funds - Great Investment Opportunities For Non Resident Indians In Their Own Home Country

By Author: Shourya Ray Chaudhuri
Total Articles: 17
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With great cash reserves at hand, NRIs seek out good investment opportunities, especially those with a huge potential for greater ROI (returns on investment). Mutual funds in India are growing in popularity, especially among expats, willing to shell out their savings for a good investment plan. A host of inviting opportunities in the Indian sector awaits NRIs, headed towards fruitful mutual investment opportunities.

A few mutual funds outshine others in the Indian market. NRIs can consider funds from HDFC, Kotak, TATA, SBI, Reliance and Franklin India Bluechip.

NRI mutual funds in India
NRIs can make mutual funds on repatriable and non-repatriable basis depending on their preference. NRIs don’t need any approval from the Reserve Bank of India for investing in Mutual Funds.

Mutual funds on repatriable basis
Only those NRIs having an NRE or an FCNR bank account in India can invest on the repatriable basis. Based on repatriation, the offering of mutual fund schemes to NRIs depends on specific guidelines issued by the Reserve Bank of India. The conditions are that the mutual funds should comply ...
... with the T&Cs of the SEBI. The NRI should make any investment by inward remittance through debit to his NRE/FCNR account or other normal banking channels. The dividends and interests, along with the maturity proceeds should be remitted the same way, and are subject to taxation.

Mutual funds on non-repatriable basis
The RBI allows and regulates NRI mutual funds on non-repatriable basis based on the condition that the funds are invested through debit to his NRO account. The funds could also be invested by inward remittance or debit to an NRE/FCNR account. The income thus generated should be allowed to be repatriated.

Choosing the right vehicles for investment
Though risky, mutual funds are undeniably great investment vehicles. Any kind of investment comes with associated risks. However, it is possible to define how good a particular mutual funds scheme is, based on certain criteria. The Excess-Return-Potential ratio is one of the indicators of the consistency of funds and their potential of success. While choosing a mutual fund, it is best to consider its reward-to-risks ratio and the corpus size.

Mutual funds are exempted from taxes, but the capital gains of NRIs from mutual funds are subject to tax deduction at source. The increasingly good performance of the Indian markets, with moderate rules and good regulations, is drawing many investments from various sectors. The regulations from the Reserve bank of India and the Securities and Exchange Board of India safeguard the rights and interests of investors. India houses a robust economy and a dynamic market, which make mutual funds an investment of choice for better ROIs.

Shourya Ray Chaudhuri.
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