How Can NRIs Invest in Mutual Funds in India?

India's booming economy and rising investment potential have made it a hotspot for global investors—including Non-Resident Indians (NRIs). One of the most efficient and accessible ways for NRIs to grow their wealth in India is through mutual fund investments. Whether you're planning to build long-term wealth or diversify your portfolio, NRI mutual fund investment offers a promising gateway.

Can NRIs Invest in Mutual Funds in India?

Absolutely, yes. Mutual funds for NRIs are fully accessible under the Foreign Exchange Management Act (FEMA), 1999. If you're an Indian citizen residing outside the country, or if you've been in India for less than 120 days in a financial year, you're classified as an NRI—and you’re eligible to invest in mutual funds in India.

However, taxation and investment eligibility are governed by both FEMA and the Income Tax Act, 1961. While FEMA defines where and how you can invest, the Income Tax Act decides how your capital gains are taxed.

How to Invest in Mutual Funds for NRIs

NRIs can invest in mutual funds online or offline using either of the following accounts:

• NRE (Non-Resident External) Account – For investing overseas earnings.
• NRO (Non-Resident Ordinary) Account – To manage income earned in India.

Once your NRE/NRO account is active, you can choose any of the two routes:

1. Self-Directed Investment

You can directly buy mutual funds in India using your NRE or NRO account through trusted platforms like RevenUmf. Before investing, complete the KYC process by submitting:

• Recent passport-size photos
• Self-attested copies of PAN, Aadhaar, Passport
• Proof of overseas residence
• Bank statements

Some banks may require in-person verification, which can be completed at the Indian Embassy in your country.

2. Power of Attorney (PoA)

Don’t want to manage investments yourself? No worries. You can assign someone as a PoA to invest in mutual funds on your behalf. The PoA holder must also complete KYC, and both parties must sign the forms.

Documents Required for NRI Mutual Fund Investment

Here’s a quick checklist of what you’ll need:

• Valid Passport Copy
• Recent Passport-sized Photograph
• Overseas Residence Proof
• Date of Birth Proof
• In-person Verification (if required)

Some AMCs may also ask for a signed NRI declaration form for mutual funds—so it’s best to confirm with your mutual fund provider.

NRI Taxation on Mutual Funds in India

Your capital gains from mutual fund investments are taxed based on the fund type and holding period. Here's a snapshot:

Good news: If your country has a Double Taxation Avoidance Agreement (DTAA) with India, you won’t be taxed twice—this could mean reduced tax liability or tax credit in your country of residence.

Why Should NRIs Invest in Mutual Funds in India?

Here are the key benefits:

• ✅ Convenience from Anywhere: Manage your entire portfolio online with RevenUmf—buy, track, or withdraw without setting foot in India.
• ✅ Portfolio Diversification: Mutual funds spread your money across various assets—stocks, debt instruments, bonds—ensuring balanced risk and reward.
• ✅ Multiple Investment Options: Choose from equity, debt, or hybrid mutual funds based on your financial goals and risk appetite.
• ✅ Tax Benefits: ELSS mutual funds offer up to ₹1.5 lakh tax deduction under Section 80C, making them a great tool for saving taxes.
• ✅ Potential for High Returns: Unlike fixed deposits or savings accounts, mutual funds—especially equity-based—offer the potential for greater long-term growth.

Conclusion

NRI investment in India via mutual funds is not only possible—it’s incredibly accessible and rewarding. With simplified processes, online platforms, and promising returns, mutual funds remain a top choice for NRIs who want to grow their wealth from afar.

Start your journey with RevenUmf today—your trusted platform for seamless mutual fund investments for NRIs.