It seems, mutual fund houses have virtually stopped taking investments from US and Canada-based NRIs ever since the FATCA has been implemented. What options do US-based NRIs have to invest in Indian mutual funds? What about the investments that are already made? Should they be withdrawn or can we continue to hold them?
Most mutual funds do not entertain investors based in US and Canada. Fund houses believe the compliance requirements to sell mutual funds to US and Canada-based investors are too huge and problematic. If you have investments in Indian mutual funds, you may have to sell them. Please check with your mutual fund once before taking the final decision. As for new investments, you can check whether any India-dedicated offshore funds are available locally.