Four simple steps to continue mutual fund investing for NRIs

Welcome back home! The afterglow of a euphoric homecoming doesn't wear off soon. And why should it? Reliving the nostalgia, the sights and sounds, the colours and contours of your city after years of living abroad is a rush like no other.

While it is easy to get swept up with emotions, it is equally important that your mutual fund investments remain on track. This is why we have listed the following four steps so you don't have to spend further time on research and instead enjoy more time on experiencing the joys of returning home.

Step 1: Become a 'Resident' Indian
There are two ways to change your non-resident Indian (NRI) status:

• If you have stayed in India for at least 182 days in a financial year. A financial year in India starts on April 1 and ends the following March 31.
• If you have stayed in India for more than 365 days in the last four years and more than 60 days during the assessment year.

Only after you become a 'Resident' Indian can you change your bank details.

Step 2: Get your bank account converted
All non-resident accounts - such as non-residential external (NRE) and non-resident ordinary (NRO) - need to be converted to a resident account, which is basically a regular savings account.

Step 3: Update KYC with AMC
Once your savings account is ready, you can inform the fund house by providing the following details:

• Change in tax status
• Updation of 'Know your customer' (KYC) details
• Change in bank details

In case you have invested in a 'direct' mutual fund, you can make these changes on your own by contacting the fund house. However, you will need to visit the office of the asset management company (AMC) or the registrar and transfer agents (RTAs) to update the changes.

In case of a 'regular' mutual fund, you can take the help of the distributor to get the changes listed with the fund house.

Not sure if you have a 'direct' or a 'regular' mutual fund, understand the differences and how to spot them.

Step 4: Start your SIP process
You need to tick the following two boxes to ensure your SIP amount is auto-debited from your account:

• Apply for change-in-bank to ensure your instalments are debited
• Request for registration of OTM (One Time Mandate) /NACH (National Automated Clearing House) mandate

For this, you'd need to submit a proof of your bank account getting converted from an NRE/NRO account to a regular savings account. You would also need to provide a cancelled cheque of the bank from where you want the SIP amount to be debited.

Suggested read: What to do with your investments when you become an NRI

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This article was originally published on August 30, 2022.