(click the Q's to drop down answer)
 How does an NRI/PIO invest in Mutual Fund (MF)?
- How can an NRI carry out transactions like making an additional purchase / redemption / switching?
Method - 1 Conventional
Once an account is opened, the NRI investor may transact by filling up the Common Transaction Form or by simply filling the details in the transaction slip attached to the statement of the account or transaction slip downloaded from the website and mailing the same to us, along with the cheque or the bank draft in case of an additional purchase.
Method - 2 Online
In case the investor has an I-pin, he/she may make an additional purchase / redeem / switch online through the website of the respective Mutual Fund.
What address should be mentioned on the application form? Can an NRI mention a local address for all communication?
Can an NRI investor get the Statement of Account and other communication by email?
The NRI investors need to provide their email ids and subscribe for the above at the time of investing by selecting the relevant columns in the application form/common transaction form.
What is the mode of payment for Repatriation and Non-Repatriation Basis?
Repatriable Basis : Payments for the purchase of the units may be made by way of Indian rupee drafts purchased abroad or by way of cheques drawn on the NRE/FCNR account of the investor. In case of DDs from FCNR, a Foreign Inward Remittance Certificate (FIRC) from the bankers is necessary, confirming that funds are from FCNR account and are repatriable.
Non-Repatriable Basis : Payments for the purchase of the units may be made by way of Indian rupee drafts purchased abroad, or by way of cheque/DDs drawn on the NRE/NRO account of the investor.
What is the distinction among NRE and NRO Accounts?
Snapshot:
| Type of Account |
Currency |
Repatriable / Non Repatriable |
| NRE-Non Resident External |
INR |
Freely Repatriable |
| NRO-Non Resident Ordinary |
INR |
Non Repatriable,
Repatriable subject to RBI conditions |
FCNR-
Foreign Currency Non Resident |
USD, GBP, Yen,Euro, DMK |
Repatriable |
The entire income/dividend received on investment will qualify for full repatriation.
Will MF accept an NRI application with an overseas bank account detail?
After an application for investment when will the units be allotted to the NRI?
How does an NRI investor redeem his/her funds?
How cialis online will the redemption proceeds be paid?
Can a Power of Attorney (POA) holder invest on behalf of the NRI investor?
While applying for purchase of units the POA holder needs to submit the original POA or an attested copy duly notarized. The POA should contain the signature of both the NRI investor and the POA holder. Only then the POA is registered and the POA holder has the right to transact on behalf of the NRI investor.
POA should contain a clause empowering the POA holder to invest in securities on behalf of the NRI. Please note that a POA holder cannot nominate on behalf of the NRI.
Is nomination by NRIs allowed in the schemes of Mutual Fund (RMF)?
Can a resident Indian have an NRI as nominee?
Can an NRI have a joint account in a scheme of Mutual Fund with a resident Indian?
How does an NRI get updated on the performance of the schemes?
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Why NRIs/PIOs should invest in India ?
NRI: The Opportunity
Reasons for investing in India
Tax Benefits:
Long term capital gains to investors are exempt from tax in the case of Mutual Fund Equity Schemes.
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Diversification across currencies:
With many NRIs, investing in Indian rupees gives them an exposure to a different currency: a currency in which many of their long term dreams (like retirement) or short term commitments (supporting dependants) may be denominated. If an NRI plans to return within the next five years, he should plan to increasingly shift his exposure to Indian rupee. Leaving it to the last minute can mean a significant exchange rate risk.
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Better growth opportunities:
With India emerging as an asset class on its own right and providing (and expect to continue providing) higher returns that the developed markets, many NRIs think that India would be a better investment opportunity than their new homeland!
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Emotional reasons:
Primarily for many NRIs, investing in India has an emotional angle. Sometimes, it is due to their familiarity with the investing instruments here or due to the need of some dependant here. |
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| Contact: |
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Madurai:
CI Investment Consultants Private Limited
33/28,San Towers,Sambandha moorthi street,
West Masi street,
Madurai-625001
Ph:0452-3291622;
0452-4381957
 :info@ciicindia.com
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Chennai:
CI Investment Consultants Private Limited
New No: 20, Fifty Fourth Street,
Ashok Nagar,
Chennai - 600 083.
Office : 044 - 32001622
Mobile : 093805 14954
:chennai@ciicindia.com
SEBI Registered Corporate Investment Consultants
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