Retirement Planning

NRIs based out of US and Canada can invest in Indian mutual funds. However, AMCs do not have a uniform policy to deal with US and Canadian clients.

Currently, close to 14 fund houses receive investment from investors based out of these two countries and another five AMCs receive investment only from US.

Broadly, there are two categories of fund houses here – where investors are not required to physically present in India and vice versa.

Here is the list of fund houses where investors are not required to be physically present in India:

• Aditya Birla Sun Life Mutual Fund
• Nippon India Mutual Fund
• Quant Mutual Fund
• Sundaram Mutual
• UTI Mutual Fund

Interestingly, these fund houses allow such NRIs to invest in their MF schemes without any restriction that too through online transaction.

Let us look at the fund houses which insist NRIs to be physically present in India:

• 360 One Mutual Fund
• Axis Mutual Fund
• DSP Mutual Fund (Only lumpsum)
• ITI Mutual Fund (Only lumpsum)
• Kotak Mutual Fund
• Navi Mutual Fund
• PPFAS Mutual Fund
• SBI Mutual Fund
• Taurus Mutual Fund
• White Oak Capital Mutual Fund

Similarly, here is the list of fund houses, which receive money only from US investors:

• Bandhan Mutual Fund (Only US)
• Edelweiss Mutual Fund (Only US)
• HDFC Mutual Fund (Only US)
• ICICI Mutual Fund (Only US)
• Motilal Oswal Mutual Fund (Only US)

Please note that all these fund houses receive investment only through physical mode. Also, these fund houses insist NRIs to submit application form along with a declaration form indicating their residential status.

NRIs residing in US and Canada will have to share Foreign Account Tax Compliance Act (FATCA) details and tax identification number (TIN) along with KYC details.

FATCA declaration form captures information like type of address (residence, business, registered office etc.), country of tax residence, tax identification number, Global Intermediary Identification Number (GIIN) and seek investors consent for sharing the information with relevant tax authorities.

For transaction, an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account is a must.

Source: Cafemutual

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