NON-RESIDENT INDIAN (NRI) FAQ

Yes, Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), and Overseas Citizens of India (OCIs) can legally invest in Indian Mutual Funds. Investments can be made on both repatriable basis (using NRE or FCNR accounts) and non-repatriable basis (using NRO accounts). Compliant KYC and FATCA/CRS self-declarations are mandatory prior to initiating transactions.

An NRE (Non-Resident External) account is used to invest foreign earnings with full repatriability of principal and returns back overseas without cap. An NRO (Non-Resident Ordinary) account manages income earned within India (such as rent, dividends, or pension); investments made via NRO accounts are subject to annual repatriation limits up to USD 1 Million per financial year under RBI guidelines.

NRIs must complete e-KYC or physical KYC with certified documents including passport copy, valid overseas address proof (utility bill or bank statement), Indian PAN card, and passport-size photographs. Additionally, FATCA (Foreign Account Tax Compliance Act) and CRS self-declarations are mandatory to confirm overseas tax residency status and Tax Identification Number (TIN) / SSN.

Unlike resident investors, TDS is deducted at source upon redemption for NRIs. For Equity Mutual Funds, Short-Term Capital Gains (STCG < 12 months) are taxed at 20% + surcharge/cess, and Long-Term Capital Gains (LTCG > 12 months above ₹1.25 Lakh) are taxed at 12.5% + surcharge/cess. For Debt Funds, capital gains are taxed at applicable slab rates with TDS withheld at source.

Yes, US and Canada-based NRIs can invest in Indian Mutual Funds, but compliance rules under FATCA and PFIC (Passive Foreign Investment Company) require specific Fund House (AMC) approvals. Select AMCs in India offer seamless onboarding and digital execution for US/Canada NRIs under strict compliance protocols.

Power of Attorney (POA) is not compulsory for digital NRI investments. However, NRIs can register a Power of Attorney (such as a trusted family member or advisor resident in India) to manage and execute transactions on their behalf. Proper POA registration requires notarization or attestation by the Indian Embassy/Consulate.