Mutual Fund investments are always lucrative and starting from the Indians to the NRIs and foreigners everyone can invest in Indian mutual funds. As per the Foreign Exchange Management Act, NRIs or the Non-resident Indians can invest in Indian mutual fund schemes subject to the applicable provisions. Here’s how the process goes on. Go through them to know how the procedure follows:
• Firstly an NRO or NRE account needs to be opened. Non-repatriable or repatriable investment basis are used by the NRIs using funds from the NRO or NRE accounts, respectively.
• The next step is to complete the KYC formalities as an NRI fills all the fields necessary for required identification and verification.
• Then a standard mutual fund application form needs to be filled by the NRI investor along with signing the CRS and FATCA declarations.
• Lastly, the mode of investment needs to be looked upon. There are two ways of going about investing in Indian mutual funds—self or through a power of attorney. In case you opt for the later method, you need to be KYC compliant.
• Then the mode of payment needs to be determined. Payment can be made by cheque is drawn on the NRE or NRO account.
Redemption is also easy if you abide by the certain rules and regulations laid by mutual funds and agree to all the terms and conditions to redeem your amount.