Rules For NRIs to Invest in Mutual Funds

Mutual fund investments by NRIs are governed by the Foreign Exchange Management Act 1999 

(FEMA).


These investments are allowed only with the compliance of certain conditions like

  • Fresh filing of Know Your Customer (KYC) document

  • Opening of a rupee-denominated Non-Resident External (NRE) or Non-Resident Ordinary (NRO) account.


For NRIs (Except USA and Canada), mutual fund investments are just as easy as they are for residents. All financial institutions are required to share details of transactions involving US citizens, including NRIs, with the US government under FATCA. The FATCA prevents deliberate tax evasion by US citizens abroad.


Reason for not accepting US/Canadian Investor:


As a result of the Inter-Governmental Agreement (IGA) signed between India and the US on 9 July 2015, mutual fund companies stopped accepting investments from the US and Canada.


NRI clients residing in the USA/Canada are required to submit a declaration for their investments.


Each of these AMCs has different conditions for accepting investments from US and Canadian NRIs. Some fund houses accept investments only through paper applications, while a few may accept applications through the NSE or BSE STAR MF platforms.

List of the fund houses that accept investments from NRIs based in the USA and Canada online and BSE:

  1. Aditya Birla Sun Life Mutual und Ltd

  2. Navi Asset Management

  3. ITI Mutual Fund

  4. Nippon India Mutual Fund

  5. Quant Mutual Fund

  6. Sundaram Asset Management Limited

  7. Samco Asset Management Limited

List of the fund houses that accept investments from NRIs based in the USA and Canada through offline mode with NRI Declaration:

  1. Aditya Birla Sun Life Mutual Fund

  2. Axis Mutual Fund

  3. DSP mutual Fund (Accepting only US)

  4. Edelweiss Asset Management Limited (Accepting only US)

  5. HDFC Asset Management Company Limited

  6. ICICI Prudential Asset Management Company Limited

  7. ITI Mutual Fund

  8. 360 One Asset Management Limited (Accepting only US)

  9. Kotak Mahindra Asset Management Co Ltd

  10. Mahindra Asset Management Company Pvt. Ltd (Accepting only US)

  11. Nippon India Asset Management Ltd

  12. Tata Mutual

  13.  Trust Mutual Fund

  14. Taurus Asset Management Company Limited

  15. UTI Asset Management Company Ltd

To further details, click on the below link:

https://docs.google.com/spreadsheets/d/122YFrWZPggZaJ21oVypGuuZhus0uPzjBkJaCHvhsB5w/edit#gid=0