As an NRI from US, will I be able to invest in the Indian MFs as an individual? Which banks or companies will help me out in buying the mutual funds?
-Prabhu Pitchai
NRIs can make investments in the Indian Mutual Funds by making remittances from abroad or out of funds held in their NRE/FCNR/NRO accounts, provided the purchase is arranged through the authorised dealer (banks authorised to deal in foreign exchange) maintaining the account. In fact, many asset management companies have even launched NRI targeted funds both in debt as well as equity category to attract investments from NRIs. Apart from these, you can invest in other funds as well.
Broadly there are two types of investments- Repatriable and Non-Repatriable. Under the non-repatriable investments, you can purchase mutual fund units out of the funds lying to the credit of your NRO account. Upon redemption, the funds will be credited back to the NRO account which can not be remitted abroad. But the interest/ dividend earned on such investments is fully repatriable, subject to production of a Chartered Accountant's certificate and an undertaking/certificate regarding payment of tax from the Income Tax Authorities.
Under the repatriable investments, you can purchase the units out of funds lying in your NRE/ FCNR account, which upon redemption can be remitted abroad. Alternatively, you can also purchase units through an authorized dealer by means of Indian Rupees draft purchased abroad and drawn in the name of the scheme, payable at Mumbai.
This article was originally published on April 19, 2005.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
