The very common thought with every national is that whichever country you live in, when it comes to investment one will always prefer to invest their money in their own homeland. There are lots of restrictions for NRIs to invest in India. However, as far as mutual funds are concerned there are no restrictions. Every NRI can invest in any mutual fund of their choice.
NRIs Investment Opportunity in India
What do you need?
Whatever documents that are necessary for an Indian national is all required by an NRI too with a little bit of changes. First of all they need to have an NRE or NRO account and additionally PAN card is required.
If they have submitted the KYC form already, there is no issue otherwise if you are a first time investor you need to produce the KYC form. For this, you need your residence certificate, passport, your photograph etc from your country of residence. After producing these documents you can invest in any type of mutual funds.
How to Buy Mutual Fund?
Both the ways of purchases are applicable – funds can be bought through companies that facilitate online method or buy producing filled applications.
How to Sell?
As soon as you submit the application for sale, the remittance will be debited via cheque or directly into your bank account. The amount invested will be returned to you only in Indian rupees.
What are the Taxes?
If you are withdrawing money in short-term the short-term capital benefit tax will be applicable and this tax will be deducted.
Who is the Nominee?
People residing outside India can represent any of their relatives in India as their nominee or you can represent another NRI as your nominee.
NRIs can use this better investment opportunity to make their investments in Indian market and can make a decent earning for long term and short-term benefits. NRI Investments in India are now getting more popular not just for news but in terms of happier returns too.