Investment in Mutual Funds in India for NRI’s

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“Where we love is home – Home that our feet may leave but not our hearts”. A simple yet very significant quote by – Oliver Wendell Holmes Sr. No matter where our Karmabhoomi (Place of Work) takes us but our heart always pulls us towards home. Home is where heart is. Home is where one grows up with best memories and dreams. With brimming technology, everything has come closer and despite of being far away, one can participate in growth back home. Through this piece of article we bring to you why should one invest in India in short synopsis and what are the must know facts for NRI/ OCI /PIO for investing in Mutual Funds in India. At Mehta Investment we would like to help you achieve Financial Freedom by empowering and spreading literacy for fellow NRI community. (More about Mehta Investment has been said towards end)

Why consider investing in India?

a.    Growing Economy

A recent news has bought pride for India and has been in headlines since some time as India has kept France behind and has been announced as 6th largest economy in the World.

In a decade India has doubled the size of its economy outpacing that of the France. While India’s GDP has risen by an average 8.3 percent over the decade and of France’s declined by 0.01 percent. India’s growth accelerated due to robust performances in manufacturing sector driven by increased consumer spending. The London based Centre for Economics and Business Research (CEBR) had predicted that India would become World’s fifth largest economy surpassing France and UK by end of 2018. Now we look forward to leap ahead of UK by the end of this year. (Source: Investors India Aug 2018)

b.    Glorious historical performance of Sensex:

The below chart shows the major events in history of India and growth of Sensex over period of Jan 91 to Jul 18.

Source: TATA MF

c.    Rapid pace of growth in Indian stock market will keep benefiting the investors.

Market-capitalisation (market-cap) of Indian equities is likely to hit $6.1 trillion by 2027, up from $2.3 trillion in 2017, predicts Morgan Stanley in its recent Asian equity Strategy Report titled: Asia’s Financial Acceleration – Moving Centre Stage.

“Within the Asian region, India’s equity market is expected to grow the fastest of the major markets at 10.1 per cent compounded annual growth rate (CAGR), reaching $6.1 trillion by 2027”

In the Asian region, Morgan Stanley feels pension funds, mutual funds, insurance, and equity and debt markets are primed for accelerating growth, which will be driven by rapidly rising household wealth, demographic change, structural reform, technological change and the development of institutional investment capacity. (Source: Business Standard as on 12 Mar 2018)


What are basic concepts specifically for NRI/PIO/OCI in relation with investments in mutual funds in India –

1)    Who is NRI/OCI/PIO?

a.    NRI:

‘Non-resident Indian’ is an individual who is a citizen of India or a person of Indian origin and who is not a resident of India. Thus, in order to determine whether an Individual is a non-resident Indian or not, his residential status is required to be determined under Section 6. Whether or not and under which sections you are an NRI can be read in detail in following are link (

b.    OCI:

The Overseas Citizenship of India (OCI) is an immigration status authorized for a foreign citizen of Indian origin to live and work in the Republic of India indefinitely. The OCI was introduced in response to demands for dual citizenship by the Indian diaspora, particularly in developed countries. The further details on OCI and its queries can be obtained in following link (

c.    PIO:

A person who or whose any of ancestors was an Indian national and who is presently holding another country’s citizenship/ nationality i.e.  he / she is  holding  foreign  passport (

2. As NRI, is NRE/NRO Bank account mandatory for having investment in Indian Mutual Funds?

It is most important pre-requisite to have NRE and NRO Accounts once you are NRI. Following table shows the major difference between NRE / NRO and accounts (

Choosing the right account depends on examining your and your family’s financial needs. If you foresee the need to repatriate more than a million dollars or if you want to maintain savings in INR then an NRE account may be the better option. If you want to keep India-based earnings in INR, then opt for an NRO account. With both NRE and NRO accounts, managing your funds as an NRI is made much more convenient and secure.


3.     Coming back to main query, can NRI invest in Mutual funds in India?

Yes, NRIs can invest in mutual funds in India – as long as Foreign Exchange Management Act (FEMA) and FATCA regulations are adhered with. Mutual Fund in India is growing and widening the horizon of its existence. NRI can now freely participate, and also help getting desired mix of debt and equity securities. Even if you want to take less risk and want a fixed income investment, the Indian debt market comes with higher interest rates. Mutual funds can broadly be classified into equity funds, debt funds and hybrid funds or balanced funds in which NRI can invest.

-How to begin to invest in India from abroad?

It’s very easy, in fact Mehta Investment platform help you to do all the transactions paperless. It’s just one time DEMAT account opening process with us and then all the mutual fund investments can happen online.

-Is PAN Card and CKYC required for NRI’s?

PAN Card (Permanent Account Number): It is mandatory for all investors (including NRIs) to submit a copy of PAN card for all type of financial transactions. It stands for Permanent Account Number, which is ten-digit alphanumerical number issued by Income Tax Department of the Government of India. We assist all our NRI clients to comply with this requirement.

CKYC Status (Central know your customer): CKYC is one time exercise while dealing in securities market. Once the CKYC is done then it remains common for all the investments.

Key Question to ask yourself regarding CKYC?

Was I Residential Indian when I started investment in Mutual funds?

If your answer is Yes then you should ask one more question, Did I update my CKYC as NRI and ensured that I continue mutual fund investment through NRE/ NRO account only?

If yes, then Well done! If No, please ask your advisors to update your KYC as per norms of NRI along with FEMA declarations.

For more financial concepts explained in synopsis you can subscribe

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Why should you invest with Mehta Investment?

Mehta Investment promotes for both Residential Indians and NRI/PIO/OCI – 100% Online Investment for its convenience. Some of the benefits being as follows:

1.    From any corner of the globe, you can have convenience and safety-

·   It ensures 100% paperless transactions

·   View status of your India specific investments.

·   Get Net worth report and make family goal report and track it against your investments all online.

·   Transact online for your mutual fund investments – Invest or redeem or switch between schemes

·   Transact with complete safety and without any compromise on privacy.

2.               Security

·        Be rest assured that the funds that you invest do not touch our bank account. Investments are carried through us but are held by Mutual Fund companies. Investors receive independent email confirmations from fund companies and NJ India Invest for all investments done through us. Investors also received monthly email statements from CDSL (

·        100% FEMA & FATCA Compliant.

·        Mehta Investment has widespread clientele across globe whom they not only help with Investment management but has also been ensuring the safety and security of each and every investment made under their banner.


4. What is the taxation on Mutual funds for NRI investors?

Taxation for NRI is not too complicated, one can refer following exhaustive source to understand the detailed taxation for NRI. (If something is that you are not able to understand feel free to contact Mehta Investment)

On a concluding note, it is very convenient for NRI to start investment in India. But we have seen theis tendency of many people to procrastinate their decisions until they visit India which leads to delay in taking decision. You will agree that the money you invest in your early life has drastic effect on money you accumulate over the years. This is true for long term investing. But if there is no ‘long term’ there is no time for “compounding”. If you loose time at the start, you lose wealth. So, no wonder that they say “Time is Money”. Reach us and we can help you start from whichever part of globe you belong to!

Feel free to contact Mehta Investment for any doubt.

3 Comments to Investment in Mutual Funds in India for NRI’s

  1. Thank you for your articles. They are very helpful to me. Can you help me with something?

  2. Hairstyles says:

    Thank you for your articles. They are very helpful to me. May I ask you a question?

  3. I appreciate the effort you put into creating this content. It’s informative and well-written. Nice job!

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