Mutual Funds | For NRI Investment Fund In India, Do You Need To Know?

Are you a NRI and looking to invest in mutual funds in India? Read this article will guide some of the options available to you in India to help you choose the right one. The fund has gained momentum in India in recent years and is a wise decision to invest in mutual funds for good yields.

In recent times, India has emerged as one of the most productive places to invest worldwide. The reason more people want to invest their money in India is due to the rapid growth being experienced in India in recent times.

The most evident economic growth with the type of investor confidence are showing towards India as a hub for major investment.

With so many investors want to invest their money in mutual funds India, which has undoubtedly become the focus of the investment world map. Investors feel that their money is in safe hands as mutual funds have minimal risk compared to equities and therefore is a good bet for long term gains.

Persons of Indian Origin / NRIs are eligible to invest in mutual funds in India after taking the general permission of the Reserve Bank of India.

Large capital gains are encouraging more and more NRIs invest in mutual funds in recent times and the results are also overwhelming.

So how do you go about your investing your money in mutual funds in India? Just read the whole article.

In accordance with the provisions of Schedule 5 of currency management an NRI can invest in most mutual funds offered by India.

How can NRIs invest in mutual funds?

An NRI can invest in programs of mutual funds in India through the money thrown at the credit of NRE / NRO account or may be through bank channels, which are approved by the authority.

All you'll have to do to invest in mutual funds is by submitting a duly completed application form along with checks or DD service center for investors.

To invest in mutual funds, is required to have an NRE bank account. General permission has been granted by the Reserve Bank of India to offer mutual funds, subject to certain conditions.

These are:

The amount of investment must be received by sending remittances to the interior through normal banking channels or by debit to NRE Bank account of the investor.
The net interest or dividends and profits of the units must be remitted through normal banking channels or credited to NRE bank account of the investor as mentioned by him / her with a payment of applicable taxes.

Tax liability on income received from investment funds NRI:

Section 10 (35) of the Income Tax of 1961 provides that income received from mutual fund investment. under section 10 (23D) is exempt from income tax. Therefore, all dividends are exempt from taxation on NRI investment fund owned by the investor. However, any applicable tax will be withheld at the source.