How can NRIs invest in mutual funds in India?

Important considerations for NRIs :
NRIs can invest in mutual funds in India through the NRE/NRO accounts and by adhering to KYC requirements and tax regulations.

NRE/NRO Bank Account :
Use a designated NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account for managing your mutual fund investments. 

KYC Compliance :
NRIs need to complete proper KYC (Know Your Customer) formalities to invest in Indian mutual funds. 
We provide 100% online KYC process for our customers.

Double Taxation Avoidance :
If you have a tax treaty with India, you may be able to claim tax relief on certain investments to avoid double taxation.
We will provide assistance to filing your income tax in India.

Understanding NRI Status

Before delving into the specifics of NRI mutual funds investment, it’s crucial to understand who qualifies as an NRI. An NRI is an Indian citizen residing outside India for employment, business, or other purposes that indicate an indefinite intention to stay abroad. NRIs can include persons of Indian origin (PIOs) and overseas citizens of India (OCIs).

NRIs can invest in mutual funds on a repatriable or non-repatriable basis.
Repatriation :  Repatriable investments allow NRIs to repatriate the principal amount and returns abroad.
Non-Repatriation :  Non-Repatriable investments do not permit repatriation.

In India, NRIs need an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) bank account to manage their mutual fund investments.
NRE (Non-Resident External) Bank Account :  For investment coming from foreign country
NRO (Non-Resident Ordinary) Bank Account :  For investment coming from Indian income / sources.

Are there any restrictions on NRI investment in mutual funds in India?

Restriction are based on Residential Status :

Canada & USA :  NRIs from USA & Canada have certain limitation when investing in mutual funds, 
A lot of mutual fund houses are not available to US & Canada residents because of additional FATCA compliance restrictions they face. We curate the investment options available based on your residence country.

Other Countries : NRIs across the world, have no limitations when investing in mutual funds.  

Banned Countries :  Algeria, Angola, Bulgaria, Burkina Faso, Cameroon, Croatia, Congo, Haiti, Iran, Kenya, Lebanon, Mali, Monaco, Mozambique, Myanmar, Namibia, Nigeria, North Korea, Philippines, South Africa, South Sudan, Syria, Tanzania, Venezuela, Vietnam & Yemen.

Restrictions on High Risk Countries Declared by FATF
https://www.fatf-gafi.org/en/countries/black-and-grey-lists.html

Know Your Customer (KYC) is needed every time you invest in Mutual Fund ?

No,  KYC is a one-time mandatory requirement for all investors.  We provide FREE online KYC updation process for your customers.  Time Taken < 10 Mins

Tax Implications for NRIs ?

NRIs should be aware of the tax implications when investing in mutual funds in India:

Capital Gains Tax: The tax rates on capital gains from mutual funds depend on the type of fund and the holding period.
As of 2025, Taxation rules for NRIs & residents of India are alike.

TDS : TDS (Tax Deducted at Source) applies to capital gains earned by NRIs. However, NRIs can claim tax refunds by filing income tax returns in India.

How does currency exchange work here?

Your money gets converted into INR when it’s deposited in the Indian bank account. All your investments are in INR and are redeemed in INR back to your Indian bank account. You can easily repatriate it back through an NRE account (no limits) and NRO account (upto $1M annually).

What GIFT City has to Offer?

Tax Benefits

Enjoy significant tax exemptions on dividends, interest, and capital gains, specifically designed for NRIs and OCIs.

Global Reach, Local Edge

Access a robust network of international banks, insurers, and asset managers while investing in the rapidly growing Indian economy.

Global Financial Gateway

GIFT City is positioned to be a global financial gateway for India, much like how Singapore and Hong Kong serve their regions. Trade in a seamless, tech-driven ecosystem featuring global derivatives, fintech innovations, and smart solutions tailored for investors like you.

Why Should NRIs Invest in GIFT City Funds?

Invest & Withdraw in Foreign Currency

Save your investment from currency depreciation that may lead to lower returns on your investment. You don’t need to necessarily present or live in India to invest in GIFT City Funds. So, you invest & withdraw from anywhere in the world.

No TDS Cut For NRIs and OCIs

With GIFT City no more TDS in India. NRIs and OCIs can withdraw full proceeds without any deductions.

Simplified Regulations for NRIs

Leverage streamlined regulatory processes and direct repatriation of funds, ensuring hassle-free investment management.

Account Holder Details :

1   Mobile No.

Consider using your primary mobile no. linked with your aadhaar & bank account

2   Email ID

Consider using your primary email id linked with your aadhaar & bank account

3   FATCA Details 

Place of Birth, Country of Birth, Nationality & Tax Resident Country

4   Nominee Details

Nominee Name, Relationship, PAN, Date of Birth, Mobile & Email (for each nominees)

Account Holder Documents :

5   PAN Copy

Proof of Identity
https://www.pan.utiitsl.com/PAN_ONLINE/ePANCard

6   Aadhaar Copy (Optional)

Proof of Local Address
myAadhaar > Services > Download Aadhaar > Download
https://myaadhaar.uidai.gov.in/en_IN

7   Demat Details (Optional)

Client Master List - CML copy required, If you need your investments in your Demat Account

8   Overseas Address Copy

Proof of Overseas Address

9   NRE / NRO Bank Account - Cancelled Cheque Only

Consider using your primary NRE/NRO bank account with your name printed in the cheque copy & Online net banking facility available.

10  Tax Details

Tax Identification Number & Identification Type

Documents Required for Online KYC Process
(If KYC Status is not Validated) :

If your KYC status is not VALIDATED. Please complete the KYC process before you begin your signup. Kindly have the following list of documents in soft copy before you start the process.

11  Photo (Passport Size)

Passport size with white background

12  Signature Copy

Image of the signatory in white paper with blue ink

13  Download Aadhaar Paperless Offline E-KYC XML File (Optional)

myAadhaar > Services > Offline eKYC > Create a Share Code (4 Digits) > Download
https://myaadhaar.uidai.gov.in/en_IN

14  Download Masked Aadhaar (Optional)

myAadhaar > Login > Services > Download Aadhaar > Masked Aadhaar > Download
https://myaadhaar.uidai.gov.in/en_IN

1   KYC Verification

Status :  KYC Validated

Check your KYC Status  |  Validate your KYC 

2  KYC Registration

Status :  KYC Not Registered

Self : Online KYC Registration (IPV)
https://www.pan.utiitsl.com/PAN_ONLINE/ePANCard

Assisted : Online KYC Registration (Non-IPV) 
Action Required : Call us at +91 7049470794 to Update your KYC Registration Process.

4  Download Masked Aadhaar

myAadhaar > Login > Services > Download Aadhaar > Masked Aadhaar > Download
https://myaadhaar.uidai.gov.in/en_IN

1  Photo (Passport Size)

2  Passport Copy

3  Overseas Address Copy

4  NRE / NRO Bank Account - Cancelled Cheque Only

5  Person of Indian Origin (PIO) or Overseas Citizen of India (OCI) Card

1  Photo (Passport Size)

2  Passport Copy

3  Visa Copy

4  Overseas Address Copy

5  Proof of NRI Status - Residential or Overseas Employment Certificate

6  Person of Indian Origin (PIO) or Overseas Citizen of India (OCI) Card