NRI Account
A preferred equity investment solutions provider to foreign investors intending to invest in India as a diversified and high growth basket
How Can NRIs Invest
in Mutual Funds with Motilal Oswal?
1. Are NRIs Eligible?
Yes, Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) are allowed to invest in mutual funds in India under FEMA regulations. Most NRIs across the world can invest, although residents of certain countries such as the USA and Canada may be subject to additional regulatory requirements depending on the AMC. NRIs can invest individually, jointly with residents or other NRIs, and may also appoint a Power of Attorney (POA) holder in India to transact on their behalf, provided all KYC and regulatory requirements are completed.
2. Step 1: Open the Right Bank Account
To invest in mutual funds in India, NRIs must use a valid NRI bank account such as an NRE (Non-Resident External) account or an NRO (Non-Resident Ordinary) account held with an Indian bank. Investments made through an NRE account allow full repatriation of funds and profits abroad, while investments made through an NRO account are subject to repatriation limits as per RBI regulations. Investments cannot be made directly from foreign bank accounts and must be routed through these designated NRI accounts.
3. Step 2: Investment Process
NRIs can invest in Motilal Oswal Mutual Funds through online platforms, registered distributors, or authorized intermediaries after completing the required KYC formalities. Investors can make lump sum investments or opt for systematic investment options such as SIP (Systematic Investment Plan), STP (Systematic Transfer Plan), or SWP (Systematic Withdrawal Plan). Transactions including purchases, switches, and redemptions can be done online or through authorized representatives, subject to applicable regulatory guidelines.
4. Step 3: Complete Your KYC
KYC (Know Your Customer) is mandatory for all NRI investors before investing in mutual funds. The KYC process typically requires submission of documents such as PAN card, passport, overseas address proof, photograph, and bank account details along with FATCA/CRS declarations. In some cases, in-person verification or video KYC may also be required to verify the investor’s identity and ensure compliance with regulatory requirements.
5. Step 4: Redemption & Repatriation
NRIs can redeem their mutual fund investments at any time unless the scheme has a lock-in period, such as in tax-saving funds. Redemption proceeds are credited directly to the investor’s registered NRE or NRO bank account. Investments made through NRE accounts are fully repatriable, allowing funds to be transferred abroad freely, whereas investments made through NRO accounts are subject to repatriation limits as per RBI guidelines and may require additional documentation.
6. Taxation for NRIs
Mutual fund investments made by NRIs are subject to taxation in India based on the type of fund and holding period. Equity mutual funds are taxed at 15% for short-term capital gains (holding period less than one year) and 10% for long-term capital gains exceeding ₹1 lakh. Debt funds are taxed according to the prevailing income tax rules. Tax Deducted at Source (TDS) is applicable on redemption proceeds for NRIs, and investors may claim tax refunds or DTAA benefits by filing income tax returns in India where applicable.
7. Important Things to Remember
NRIs should ensure that their residential status is correctly updated in KYC records and with the mutual fund house before making investments. All transactions must be routed through NRE or NRO bank accounts registered with the investment folio, and investors should ensure that FATCA and regulatory declarations are completed accurately. NRIs can nominate beneficiaries for their investments and may also continue or modify their investments if their residential status changes in the future, subject to regulatory compliance.
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Why choose us?
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With over 30 years of equity expertise, our QGLP philosophy (Quality, Growth, Longevity, and Value Price) and “Buy Right, Sit Tight” approach have helped investors across the globe create long-term wealth.
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Whether you want to explore Equity Funds, ETFs, Index Funds, or Thematic Portfolios, Motilal Oswal offers a wide spectrum of mutual fund solutions for NRIs who wish to participate in India’s growth story.
Ready to Invest?
Don’t let distance stop you from growing your wealth in India.Start your NRI mutual fund journey with Motilal Oswal today.