Opportunity to invest in Indian Markets
The following documents are required to invest in Mutual Funds in India:
- Pan Card Copy
- Passport Copy (Front and Back page)
- Foreign Address proof/ Indian Address proof (For ex: if passport has foreign address then provide Indian Address proof)
- Bank Proof (cancelled cheque or latest bank Statement from NRE or NRO Account)
- Person of Indian origin (PIO) or Overseas Citizen of India (OCI) certificates. This is only required for investors who are not Indian Nationals.
- Tax Identification Number.
Application for fresh allotment of PAN can be made through Internet. Further, requests for changes or correction in PAN data or request for reprint of PAN card (for an existing PAN) may also be made through Internet.
Online application can be made either through the portal of:
The charges for applying for PAN is Rs. 93 +GST for Indian communication address and Rs. 864 + GST for foreign communication address. Payment of application fee can be made through credit/debit card, demand draft or net-banking.
NRE and NRO Account
Which bank account is required to invest in Indian Mutual funds?
NRIs can invest through either NRE or NRO account in Indian Mutual Funds. NRIs who wish to invest through both NRE and NRO account can invest through two separate accounts (one for NRE and other for NRO).
Difference between NRE and NRO account
- NRIs can have a Non Resident External (NRE) and Non Resident Ordinary (NRO) account to manage their incomes earned abroad and in India. Both are rupee designated accounts.
- NRE accounts for income deemed to have been earned out of India and NRO accounts for income deemed to have been earned from India.
- Repatriation of money from NRE accounts can be done freely while there are some restrictions on the same from NRO account.
- NRE accounts are tax exempted while NRO accounts are not.
Does an NRI require any approval from the RBI to invest in mutual fund schemes?
No special approval is required. NRIs have been granted a general permission by RBI [Schedule 5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000] for investing, redeeming units of the schemes subject to conditions set out in the aforesaid regulations.
Taxation for NRIs
Taxation for NRIs investing in Indian Mutual Funds is same as taxation of resident Indians. The only difference is that for NRIs, there is a Tax Deducted Source.
Equity: TDS of 15% for short term (< 1 year)
10% for long term (> 1 year)
Debt/Gold: TDS of 30% for short term (< 3 years)
20% post indexation benefit for long term (> 3 years)
In case the TDS amount is more than the actual taxation, the investor can claim refund of the excess TDS at the time of filing the returns. A TDS certificate is issued in the name of the investor mentioning the details of the transaction and the tax deducted. The TDS certificate is commonly known as Form16A.
The tax indexation benefit is a great way to reduce your tax outgo and generate much better returns than Fixed Deposits for NRI clients. India has double tax avoidance agreement (DTAA) with many countries in the world. This saves you from paying taxes in both India and in the country of your residence
Safe, Secure and Easy to manage funds online from anywhere
Your investments with us are done in a totally safe and hassle free way. Your investments records are kept safe with the Mutual Fund house that you are investing in and we provides you the convenience of investing in the top mutual funds. With the option of investing online, it is much easier to track and manage your mutual fund investments from wherever you are. Investors can buy, redeem, and switch as well as opt for systematic transfer or withdrawals online.
KYC for NRIs
If you are a first time mutual fund investor, then you might be required to furnish additional details, sign the KYC Form (which will be emailed to you), sign and send us the hard copy of the form along with required documents.
The NRI can start making lump-sum (one time) investments online immediately after Investment Account registration. SIPs can be started online after the mandate is registered which usually takes around 20 working days.