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Yes, NRIs can invest in eligible Indian investments, subject to FEMA, SEBI, KYC, tax and other applicable requirements.
For mutual funds, however, US persons can face additional FATCA/compliance requirements, and some AMCs or schemes may restrict or not accept US-resident investors. SEBI scheme documents continue to show restrictions and exceptions for US persons and Canadian residents, so availability must be checked scheme-by-scheme.
NRE account: generally used for eligible foreign-sourced funds and has repatriation features subject to applicable rules.
NRO account: generally used for managing eligible Indian income.
The appropriate account depends on the source of money, investment and repatriation requirement.
This is one of the most important differences for US-based NRIs.
A US citizen or US tax resident may have US reporting obligations for foreign financial accounts. For example, FBAR generally applies when aggregate foreign financial accounts exceed US$10,000 at any time during the year.
US taxation can also involve additional rules for foreign investments, so an Indian investment should not be evaluated only from the Indian tax perspective.
Indian tax may apply to eligible Indian investment income and capital gains, with applicable TDS and reporting requirements. The NRI's US tax position must then be considered separately, including applicable treaty and foreign-tax-credit rules.
NRI investment rules, taxation, FEMA/RBI regulations and repatriation requirements may change from time to time. The information provided is for general educational purposes and may not reflect the latest changes.
Please consider your individual circumstances and applicable laws before making any financial or tax-related decision.
RBI/FEMA rules determine whether investment proceeds can be repatriated and through which account. For eligible investments made on a repatriation basis, RBI rules provide specific routes for remittance of proceeds after applicable taxes.
He is 36 and wants to continue building his India-based wealth while planning for his child's education and his retirement.
XYZ has to plan for two big goals at the same time: his child's education (11 years away) and his retirement (24 years), while keeping his family protected. What each goal will cost, and how much to set aside for it every year, depends on inflation, his tax position in the USA and India, and how much market ups and downs he is comfortable with.
Your income, investments and goals may be completely different from XYZ's. A goal-based review shows what your own goals may need and how your existing investments fit in.
Illustration only. XYZ is a hypothetical profile and no returns are assumed or promised. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Ignoring FATCA
Assuming every Indian mutual fund accepts US NRIs
Continuing resident banking arrangements after becoming NRI
Ignoring US reporting requirements
Looking only at Indian taxation
Investing without considering future repatriation
Your Country. Your Goals. Your India Investments.
Your country of residence, tax residency, income, existing investments and financial goals.
Your Indian investments, NRE/NRO structure, insurance and existing financial commitments.
Create an investment and financial strategy based on your goals, time horizon and risk profile.
Implement eligible investment solutions based on your requirements and applicable regulations.
Review your portfolio as your income, residence, family, tax position and goals change.
Your India investment plan connects to more than one topic. Explore related pages:
Guidance for NRIs in other countries:
Eligible NRIs can invest subject to applicable regulations, KYC, fund-house eligibility and country-specific restrictions.
Yes, eligible NRIs can use SIPs subject to KYC, banking, AMC and applicable regulatory requirements.
NRE and NRO accounts serve different purposes. The appropriate account depends on the source of funds, Indian income and repatriation requirements.
Potentially, but repatriation depends on the investment type, source of funds, account, taxes and applicable FEMA/RBI rules. RBI rules provide different treatment for repatriation and non-repatriation investments.
Indian tax may apply depending on the investment, income/gain and applicable tax rules.
It may. This depends on your tax residency and local laws. Countries such as the US, UK, Canada and Australia have significant rules around foreign income, assets and reporting.
Some AMCs and schemes apply additional requirements or restrictions for US persons due to FATCA-related compliance. Availability should be checked scheme-by-scheme before investing.
US citizens and US tax residents may have foreign account reporting obligations, such as FBAR, when aggregate foreign financial accounts exceed the applicable threshold. This should be reviewed with a US tax professional.
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