What will happen to my mutual fund investments after I become an NRI?

Am I required to withdraw my fund investments after I become a non-resident Indian? I already have SIPs running. Please also explain if there are any tax implications.
-Kesava Velugubantla

As an NRI, you can continue your SIPs and investments in your existing mutual fund folio. There is no need to redeem your investments. However, you need to intimate the asset management companies (AMCs) about the change in your status, address and bank through a 'Know Your Customer' (KYC) change form.
The taxation on mutual funds is same for NRIs and resident Indian investors. The only difference is that in the case of NRI investors the short-term and long-term capital gain taxes will be deducted at source at the time of redemption. The Double Taxation Avoidance Agreement (DTAA), if in line with your new country of residence, should help you avoid double taxation of your income/gains from funds.

This article was originally published on September 13, 2016.