Mutual Fund Investments

Can NRIs make investments in Mutual Funds using foreign currency?

Investment in MFs cannot be made in a foreign currency. So NRIs have to open an NRO or NRE account with an Indian bank. They can either make payments via a cheque issued from their NRE/NRO account or use net banking facility.

Can NRIs redeem their Mutual Fund investments?

Yes, NRIs can redeem their Mutual Fund investments. The redemption proceeds can be credited to their NRE/NRO accounts

Can NRIs nominate a nominee for their Mutual Fund investments?

Yes, NRIs can nominate a nominee for their Mutual Fund investments in India. The nominee can be a resident Indian or another NRI. Subject to the exchange control rules in force, from time to time.

Is the indexation benefit allowed for NRIs?

Yes, the indexation benefit is allowed for NRIs. Generally, indexation benefit is required to be taken into account, in context to mutual funds, while calculating long-term capital gains taxes for hybrid mutual funds.