A checklist for Investing in Mutual Funds as an NRI

A to do list on how to manage your Mutual Fund investments when your residential status changes from Resident to Non-Resident or if you are already an NRI.

  1. Bank Account
    • Convert your existing Resident Savings Accounts to NRO (Non-Resident Ordinary A/C). This type of bank account allows for receiving funds in both Indian and Foreign Currency. This is where you can maintain and manage your income earned in India such as rent, dividends, pension etc.
    • Set-up an NRE Account and use that to invest funds generated from your Overseas income: This type of bank account allows for receiving funds only in Foreign Currency. Except for Indian Currency received from specified sources such as proceeds from Mutual Fund redemptions.
    • You can read more about differences between NRO & NRE account types here.
  2. KYC: Update your KYC status from Resident individual to Non Resident (NRI)
    • You can get this done by asking your previous intermediary to update your KYC status in the centralized KYC database, OR
    • Visit the nearest CAMs/Karvy office when you are in India. Submit the documentation in person.
    • KYC Update Documentation is simple and usually includes a Proof of Overseas Address and a copy of your Passport
  3. Update your Non-Resident(NRI) status in all your existing Mutual Fund folio(s)
    • All your existing investments should be tagged to your NRO account and your residential status should be updated in all your Mutual Fund Folio(s),
    • AMC(s) do not accept this update request electronically. The fastest option: visit the nearest CAMs/Karvy office when you are in India and submit the documentation in person. An account statement(NRO) copy and a refresh of your KYC information is adequate and within a few days.
  4. Further investments as an NRI
    • Use the NRO account and your updated Folio(s) mapped to your NRO account for:
      • Managing your existing investments
      • Further Mutual Fund purchases made using funds generated from any continuing income in India.
    • Use the NRE account and create new Folio(s) for Mutual Fund purchases made using funds generated from any continuing income in India.
    • DO NOT: Invest in an Folio linked to your NRE account using your NRO account and vice versa as this inconsistency may lead to order rejection(s) by AMCs, redemption issues and even laborious/delayed refund(s) in case of an order rejection.

The above is only an indicative outline of managing your investments for when you become a Non-Resident. Please don’t treat this as legal and tax advice. Do consider consulting a tax expert to get expert advice most suited to your specific circumstances. Further, some of the content in this note links to external websites.

If you are KYC compliant and have an active Non-Resident Bank account, you can get started today on Kuvera.in. Just create your login and go from there.

16 Responses

  1. Kapil Mehta says:

    I am NRI living in dubai, can i invest in mutual funds using your platform.

    Why cant i use NRE account ??

    Phone no. in dubai not getting your Message/otp ??

    Kapil

  2. Neelkanta says:

    Hello,
    Currently I am planning to immigrate to Australia on Permanent residence Visa and hold a lot of MFs mapped to few different saving accounts in India.
    How Can I update bank details for all MFs so that when I redeem it going to a single account.
    Also, can I convert same saving account to NRO account for MFs before moving to Australia and becoming NRI.

  3. Anubhav says:

    Hi,
    I am a POI FROM CANADA , recently opened an account …. but i was reading T&c, it doesn’t allow investment from usa or canada … can you please clarify if i can inveat through kuvera if so which AMC’s i can buy into

  4. Prakash Joshi says:

    My sister is a citizen of Australia but having also a status of OCI in that case can she use KUVERA platform to invest in any open ended equity mutual fund of her choice?

  5. RAVI KUMAR says:

    Hi Sir, I am working as a seamen(onboard ship our ship sailing world-wide)I have nre account and I am already registered with kuvera but I need to update my pan card for that I am waiting for my sign off in the month of april then I will visit karvy office for updating my pan and start investing through kuvera,I want to know is there any limit for nre account holders ,I want to invest in direct mutual funds and elss fund’s ……Thanks

  6. Kunal Singh says:

    Hi so how shud I convert my residency status as NRI status please help

    • Gaurav Rastogi says:

      Please update your KYC to reflect your updated residency status. You can ask your bank RM (where you have NRE / NRO account) to help you do the same.

  7. Kunal Singh says:

    Hi I would like to know bring an NRI and investing through nre account ! Is it safe to do so ? Will there be any issues incase of redemption after the maturity of the investment?
    Thank you

  8. RAJEEV says:

    I am an NRI ( Merchant Navy) and have shown same on profile. I am not a resident of USA /Canada. However when I try to invest /switch your platform it says that ( Investment from USA/Canada people in these funds not allowed and instead choose these funds !!). I know that you guys have to generate some revenue to survive but forcing unwanted funds is not the right way. Apart from this, your app is quite user-friendly.

    • Gaurav Rastogi says:

      Hello Rajeev, we checked and while account setup you set your Tax residency as the US. Thus the restriction within the app. If you would like to change this setting we request you to email [email protected] for help.

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