Mutual Fund Investment For Nris In India- What Do You Need To Know?
Are you an NRI and looking to invest in mutual funds in India? Read on, this article will guide with some of the options available to you in India to help you in choosing the right one. Mutual fund investment has gained momentum in India over past few years and it is a wise decision to invest in mutual funds for getting good returns.
Of late, India has emerged as one of the most productive place for investment across the globe. The reason why more and more people want to invest their money in India is because of the fast growth which India is witnessing in the recent time.
The economical grow quite evident with the kind of confidence the investors are showing towards India as a major investment hub.
With so many investors wanting to invest their money in mutual fund India, it surely has become the spotlight of investing map in the world. The investors feel that their money is in the safe hands as mutual funds carry minimal risks when compared to equities and therefore it is a good bet for long term gains.
People of Indian origin / NRIs are eligible to invest in mutual funds in India after taking general permission from Reserve Bank of India.
Huge capital returns are encouraging more and more NRIs to invest in mutual funds of late and the results are also overwhelming.
So how do you go about your investing your money in mutual funds in India? Just read rest of the article.
As per the provisions of schedule 5 of the foreign exchange management an NRI can invest in most of the mutual funds India offers.
How can NRI invest in mutual funds?
An NRI can invest in mutual fund schemes in India through the money lying in the credit of NRE/NRO account or may be through banking channels which are approved by the authority.
All you'll need to do to invest in mutual fund is by submitting a duly completed application form along with cheques or DD to investor service center.
To invest on mutual funds, it is compulsory to have an NRE bank account. General permission has been granted by the Reserve Bank of India to offer mutual fund, subject to few conditions.
These conditions are:
The investment amount has to be received by inward remittance through normal banking channels or through debit to an NRE Bank account of the investor.
The net amount of the interest or dividend and proceeds of units should be remitted through normal banking channels or be credited to NRE bank account of the investor as mentioned by him / her with a condition of payment of applicable tax.
Tax liability for income received from NRI mutual fund:
Section 10 (35) of Income tax Act, 1961 defines that income received from mutual fund investment under section 10 (23D) is exempt from income tax. Therefore all dividends are tax free on NRI mutual fund held by the investor. However any tax that is applicable will be deducted at source.
Reliance Mutual Fund is one of India's leading mutual funds offering wide range of open ended and close ended mutual fund schemes catering to individual investor requirements.
Article Source: ArticlesBase.com
