How Can NRIs invest in Mutual Funds in India| North Loop Official Blog
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29 Sep 2020

How Can NRIs invest in Mutual Funds in India

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As an NRI, you can invest in mutual funds in India as long as you follow the guidelines laid down by the Foreign Exchange and Management Act, 1999 (FEMA). Before we move on to the ways by which you can invest in them and the best MFs to invest in India, let us understand about the accounts that you must have to be able to invest in the top MFs in India.

NRE Account – This account gets primarily used for saving your foreign earnings in Indian rupees. NRE account allows you to repatriate your overseas income and also helps to carry out banking and investment in India.

NRO Account – This account gets used for managing income earned in India such as rental income, dividend income etc. NRO account allows full repatriation of your interest income. However, there is a limit of USD 1 million per financial year for repatriation of the principal amount. Click here to read the differences between fixed deposits and mutual funds.

Mutual Fund KYC –

Being KYC verified is a mandatory requirement before you can invest in India as an NRI. The documents required for NRI mutual KYC are as follows:

PAN Card
Foreign residence proof
Cancelled cheque of NRE/NRO account
Copy of passport

Let us now discuss the ways by which you can invest in the top MFs in India –

Direct or Self-investment – You can invest in mutual funds directly through your NRE/NRO account by downloading the mutual fund KYC forms online and submitting them. Sometimes banks also request for an In-person verification (IPV) for which you can visit the Indian Embassy in your resident country and meet the mutual fund’s official representative with your original documents. You can also complete your IPV through video-conferencing and upload the KYC documents on the asset management companies’ website.

Power of Attorney – You can also appoint a Power of Attorney (POA) to invest in mutual funds in India on your behalf. If you do so, you should ensure that your POA holder is also KYC compliant. Moreover, both your and the POA holder’s signatures must be present on all the KYC documents to carry out the investment.

Which is the best MF investment company in India?

One way of determining reliable MF investment companies is by looking at their AUM size. Asset under Management or AUM is the total market value of all the assets managed by the mutual fund companies and therefore, a large AUM size implies more faith shown by investors in that AMC and also chances of better MF India returns. Various other factors can get used to determine the best MF investment company in India. We have listed the top 10 in the country currently -

ICICI Prudential Mutual Fund
HDFC Mutual Fund
Aditya Birla Sun Life Mutual Fund
Reliance Mutual Fund
SBI Mutual Fund
L&T Mutual Fund
Kotak Mahindra Mutual Fund
Franklin Templeton Mutual Fund
DSP Mutual Fund
Axis Mutual Fund
IDFC Mutual Fund
UTI Mutual Fund
Motilal Oswal Mutual Fund
Mirae Asset Mutual Fund

However, as an NRI looking for MF India returns, you need to know which of these AMC’s accept NRI investments and to make your decisions accordingly. Some of the MF agencies that accept investments by NRIs are as follows –

SBI Mutual Fund
Birla Sun Life Mutual Fund
DHFL Pramerica Mutual Fund
ICICI Prudential Mutual Fund
UTI Mutual Fund
L&T Mutual Fund
PPFAS Mutual Fund
Sundaram Mutual Fund

If you are looking to invest in mutual funds from the convenience of your home, you can do so online through an MF India app. It eliminates the need to submit physical documents, allows paperless KYC and helps you invest directly in mutual fund schemes and also track them.

The top 5 MF India apps of 2020 are as follows -

North Loop
ETmoney
CashRich
Groww
MyCams

These apps not only allow you to invest directly in mutual funds but also track the performance of your investments, recommend the best MFs to invest in India based on your financial goals and risk profile and provide a dashboard to manage it. Moreover, they also allow you to review the different schemes’ past performance and calculate your SIP or returns.

Steps to follow for investing through North Loop -

Download the app from App store/Play store or visit its website
Sign up on North Loop
Open an account on it
Deposit money into your account
Start investing directly in mutual funds
(You can also take the help of our professional mutual fund advisors)

To invest in mutual funds online with North Loop, sign up here.

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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.