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NRI FAQ
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A Non-Resident Indian (NRI) is an individual who lives outside India but holds Indian citizenship or is a Person of Indian Origin (PIO).

A Person of Indian Origin is someone who:
  • Holds citizenship of any country, excluding Bangladesh or Pakistan, and:
  • Once held an Indian passport; or
  • Has parents or grandparents who were Indian citizens as per the Indian Constitution or the Citizenship Act of 1955; or
  • Is married to an Indian citizen or someone who meets the above criteria.

An Overseas Corporate Body (OCB) refers to a corporate entity like a company, partnership firm, or society. It's majorly owned (at least 60%) by NRIs. This definition also encompasses overseas trusts where NRIs hold a minimum of 60% stake, either directly or indirectly, in an irrevocable manner.

A Foreign Institutional Investor (FII) is an institution founded or registered outside India. They aim to invest in Indian securities and must be registered with the Securities and Exchange Board of India.
Yes, NRIs, FIIs, and PIOs are permitted to invest in any mutual fund schemes in India under the Portfolio Investment Scheme. However, OCBs are excluded from investing in these schemes.
NRIs and FIIs have general permission granted by the Reserve Bank of India for investing in domestic mutual fund schemes, per the conditions outlined in the relevant regulations. On the other hand, PIOs should attach a copy of their PIO card when submitting their investment application forms.
No, all investments must be made in Indian Rupees. NRIs should provide a Rupee cheque from their NRE, NRO, or NRSR bank account in India. Alternatively, they can send a Rupee cheque from overseas, but it must be payable at an Indian bank.
  • NRE (Non-Resident External) Rupee Account: This is a rupee account from which funds can be freely transferred abroad. It can be funded from abroad or from local NRE/FCNR accounts. The balance is freely repatriable, and the interest earned is tax-exempt for the NRI.
  • NRO (Non-Resident Ordinary) Rupee Account: This rupee account can be funded from abroad or from local sources. Typically, funds in NRO accounts aren't repatriable. However, under specific directives, they can be sent abroad.
  • Open a Bank Account (NRE/NRO).
  • Complete your KYC & CKYC procedures.
  • Submit the necessary documents and declarations for KYC.
  • If you're a US or Canadian resident, provide a FATCA declaration.
  • Register with NRIZEN.
  • Begin your investment in Mutual Funds.
India presents a compelling investment opportunity, especially post-COVID, as its economic fundamentals are robust compared to the developed world. Historically, NRIs have focused on real estate investments, which were advantageous while the Indian Rupee (INR) depreciated against major currencies. However, with a potential stabilization of the INR, Indian companies may offer more attractive investment prospects. Participating in India's growth story could be a strategic move at this juncture.
Our expert team has conducted extensive research to save you time and effort. We provide a selection of mutual funds from reputable fund houses tailored to your financial objectives and risk tolerance.
Yes, you must have an NRO, NRE, or FCNR account with an Indian bank to invest in mutual funds, as investments cannot be accepted in foreign currencies.
Absolutely, NRIZEN offers support in setting up all necessary accounts swiftly and without additional charges.
With over 20 years of experience in Indian mutual funds, our founders bring a wealth of expertise. Ritesh Jain (LinkedIn- https://www.linkedin.com/in/riteshmjain/?originalSubdomain=ca), our founder, is a former Chief Investment Officer for prominent mutual fund houses in India, now based in Calgary, Canada. Our co-founder, Eastern Financiers https://www.easternfin.com/about-us, boasts over 50 years of experience in financial product distribution and is a leading mutual fund distributor in Eastern India. Together, we offer a blend of investment and operational expertise to navigate your investment journey.
Your funds are converted to INR when deposited into your Indian bank account. Investments and redemptions are processed in INR, with the ability to repatriate funds through an NRE account (no limits) or an NRO account (up to $1M annually).
NRIZEN is a reputable AMFI registered mutual fund distributor, strictly adhering to SEBI guidelines to safeguard your investments. Your funds flow directly between your bank account and the mutual fund's scheme account, ensuring transparency and security.
A PIO (Person of Indian Origin) card was a form of identification issued by the Government of India to individuals of Indian origin living abroad, allowing them certain benefits such as visa-free entry to India and certain rights similar to those of an Indian citizen. However, it's important to note that the PIO card scheme has been merged with the OCI (Overseas Citizen of India) card scheme. Those who held PIO cards are now encouraged to convert them to OCI cards for extended benefits.

Since the PIO card scheme has been discontinued, individuals of Indian origin seeking similar benefits must apply for an OCI card. For those who already have a PIO card and wish to convert it to an OCI card, or for first-time applicants, detailed information on the application process can be found on the official Passport Seva website at http://www.passport.nic.in.
Yes, possessing a PAN is essential for investing in Mutual Funds in India.
No, overseas bank details are not permissible in the application form.
Yes, upon redemption, Asset Management Companies will credit the proceeds directly to the NRI/PIO's bank account, and repatriation is permissible under the Foreign Exchange Management Act 1999.
A SIP allows you to invest a fixed amount in a mutual fund scheme at regular intervals, similar to a recurring deposit. It's a convenient way to invest with automatic bank account debits, starting from as low as ₹500 per month.
Yes, NRIs can participate in SIPs.
No, gifting of mutual fund units without a Demat account is not permitted.
Yes, NRIs are eligible for indexation benefits on the sale of non-equity-oriented mutual fund units held for over 12 months, as per the Income Tax Act 1961.
Yes, NRIs can nominate beneficiaries in their investment folio.
Yes, a Power of Attorney holder can make investments on behalf of an NRI.
Yes, NRIs can have joint accounts with either Resident Indians or Non-Resident Indians in Mutual Fund schemes.
NRIs are eligible to invest in Equity Linked Savings Schemes (ELSS) of Mutual Funds and avail tax benefits under Section 80C of the Income Tax Act, 1961, up to ₹1.5 lakh annually.
Yes, a resident Indian can nominate an NRI, subject to RBI Exchange Control Regulations in effect at the time.
An NRI must enclose a copy of their passport with the PAN application
  • Passport copy
  • Bank account statement from the country of residence
  • NRE bank account statement showing at least two transactions in the last six months, attested by an Indian Embassy/Consular office/High Commission, Apostille, or the bank manager where the account is held. The applicant may be a joint holder.
Due to FATCA regulations, not all AMCs in India accept investments from NRIs, especially those from the US and Canada. However, the following fund houses do take investments from NRIs from these countries:
  • Aditya Birla Mutual Fund
  • UTI Mutual Fund
  • ITI Mutual Fund
  • Quant Mutual Fund
  • Samco Mutual Fund
  • Nippon Mutual Fund
  • Sundaram Mutual Fund
  • Grow Mutual Fund
  • PPFAS Mutual Fund
    • Dividends and redemptions are typically paid through direct credit to the NRI's designated bank account and are payable in Indian Rupees. When converting to other currencies, the fund is not responsible for losses due to exchange rate fluctuations.
    NRIs visiting India can complete their KYC and FATCA requirements by visiting a mutual fund distributor or any mutual fund registrar office with the necessary documents. For those unable to visit India, verification and In-person Verification (IPV) can be done virtually, where an authorized official will confirm the individual's presence and verify document copies against the originals.
    The following documents are needed for NRI KYC and CKYC applications:
  • Signed KYC-CKYC Application Form
  • Recent passport-size photograph
  • PAN Card copy
  • Valid passport copy; OCI/PIO card if holding a foreign passport
  • Proof of foreign address (utility bills, rent agreement, accommodation letter, driving license, bank statement, tax invoice, etc.)
  • Proof of Indian address (Voter ID, Passport, Driving License, NREGA Job Card, Masked Aadhaar)
  • Signed IPV Declaration by an ARN holder
    • NRIs can get IPV done through authorized officials at overseas branches of Scheduled Commercial Banks registered in India, notary public, court magistrate, judge, or Indian Embassy/Consulate General in their country of residence. After completing IPV and document verification, the documents can be sent to the mutual fund distributor, AMC, or mutual fund R&T agents for processing.
    Redemption is processed at the fund's NAV for the day, and the proceeds are paid in Indian Rupees directly to the investor's bank account. The fund is not liable for any loss due to currency exchange fluctuations.
    Under FEMA section 6(5), an individual who becomes a non-resident can continue to hold securities purchased as a resident on a non-repatriable basis without changing the status of their holdings.
    To change tax status, the investor must inform the fund house of their new status and request a change in bank details from NRE/NRO to a Resident Indian account. They must provide a canceled cheque leaf from their NRI bank account and the new Resident Indian account.