Making NRI investment in Indian mutual funds easy.

Sophisticated corporate earnings have made the Indian stock market a lucrative opportunity for every NRI investor. Any Non-Resident Indian (NRI) willing to tap this prospect may directly invest in stocks given he has the expertise and time. However, investing in Indian mutual funds instead is both a smarter and more cost-effective decision. Moreover, it's the perfect time to invest in mutual funds!

Mutual funds are available in 3 main categories – Equity fund that deals in mutual funds of stocks, debt funds that deal in mutual funds of debentures, bonds and other debt funds and Hybrid funds that are formed by keeping a certain percentage of both debt and equity funds. 


Bank account – According to the Foreign Exchange Management Act (FEMA), an NRI must open an NRI account in India to carry out any financial transaction in the country. An NRI can choose to open an NRE savings account or an NRO savings account based on his requirements. 

  • NRE savings account – If he wants to invest or manage his foreign earnings in India.

  • NRO savings account – if he wants to manage his Indian income efficiently. 

Using these accounts, an NRI can easily buy and manage his mutual funds online from any part of the world.

Convenient Bank Procedures – To open a bank account in India, an NRI need not be physically present in the country. All procedures required to open an NRI account can be done online well within the applicant’s convenience. With the correct banking partners, all procedures right from filling the form to personal verification, everything can be handled swiftly from miles away.

  • Document Attestation – You can get your documents attested in the country of your residence. This can be done by an authorised official of an overseas commercial bank registered with the RBI. 

  • KYC Form – The KYC form can be filled out online and all the attested documents can be attached with the duly filled form and sent to your banking partners. These banking partners will then do the needful formalities in India set you up for in-person verification. 

  • In-person verification – For in-person verification, an NRI may have to visit the Indian Embassy in his city or provide an in-person verification through a video conference call if his banking partner permits. 


In any of the above-mentioned procedures, all that an NRI has to do is work under their banking partners and get his NRI account open in a few working days.


Mutual funds make investing simple – Instead of investing in a single bank fixed deposit, gold or real estate, it is always advisable to invest in mutual funds. 

  • Investing in mutual funds diversifies your risk across different sectors and different investing instruments. 

  • Mutual funds are easy to buy, sell as well as redeem from your NRI account. 

  • Transfer and withdrawals in mutual funds can be done online without the need of issuing any cheque or demand draft (DD).

  • The NRI mutual fund investor also receives a consolidated statement of his NRI account through e-mail

Making mutual funds quick, easy and highly popular among NRI investors. 


Expert advice – We at SBM Bank India, are highly dedicated to all our prestigious customers keeping their benefit always at the forefront. A dedicated team of industry experts is available 24x7 along with your relationship manager to help you choose a mutual fund that suits you the best. Stationed in India, these experts deal with the markets on daily basis and have a rational idea of the market to help you make well-informed decisions. With their assistance, investing in mutual funds is not only made quick and easy but also highly beneficial and effective. 


Foreign exchange fluctuations – Converting your foreign income into the Indian rupee through your NRE savings account or transferring your Indian investment gains saved in your NRO savings account both undergo foreign exchange fluctuation risks. If the Indian Rupee appreciates after your investment in mutual funds, you get a benefit of this appreciation on withdrawal. Your NRI account keeps a track of these fluctuating rates and helps you manage your investments accordingly. 



Investing in mutual funds is easy but choosing your correct banking partner from a variety of financial institutions is not. It is always advisable to take proper guidance from industry experts. SBM Bank India will be happy to support you in case of any assistance that you may require. Also, visit SBM Bank India to know more about our NRI saving accounts.

Comments

Post a Comment

Popular posts from this blog

Your perfect guide to NRI housing loans.

Image
  Being able to go back to a well-established house in your homeland which you can call your own – is a dream come true for many NRIs living abroad. But is it really advisable to block a huge chunk of your funds into building a house which you will use, at least in the near future, only as a second home? To resolve this dilemma, the Indian financial institutions provide NRIs with a well-designed financial system known as NRI housing loans.  What exactly is NRI Housing Loan? NRI Housing Loan is a loan provided by banks to NRIs for purpose of purchasing a land/ building/ house or property for residential purposes. NRI housing loan can also be taken for renovating or remodelling an old property or constructing a new building altogether. These loans are typically called home improvement loans.  In order to avail of an NRI housing loan, an NRI has to first and foremost open an NRI account with an authorised bank. Secondly, he or she has to partner with an Indian resident who w...
Read more

Beginners guide for NRI's who wish to invest in India.

Image
  First things first – Let us all understand what investing is exactly? Investing for any person having a stable income means setting aside a portion of this income that you think you may not require in the short-term future. While you are working hard in another country to earn the luxuries of life, this extra money of yours if invested well, helps you generate an additional income apart from your regular business.  As an NRI, the Indian markets give you a vast opportunity to invest your money and reap the lucrative benefits of your investments. The government also gives NRIs special preferences and facilities when it comes to investment in the Indian markets. All you have to do is open an NRI savings account with a bank in India. You can opt for an NRE account, NRO account or an FCNR account according to your needs and requirements.  NRIs can invest in various Indian asset classes like NRI mutual funds, Stocks, Pre-IPOs, Indian bonds, Real estate and many more. If you t...
Read more

Why is India a Good Destination for Investment

Image
India continues to be an attractive destination for the investors, and form a huge part of the world’s fastest-growing economies. Indian residents and Non-Resident Indians(NRIs) are actively looking to earn money by Investing in India. Also, if the investments are made by NRIs then it is treated as ‘foreign investments’ as per the Indian foreign exchange regulations, making India one of the top recipients of  foreign remittances   from its diaspora. Here are some reason why India is a good place for investment:- Indian economy is one of the world's fastest-growing economies According to the Department of Promotion of Industry and Internal Trade, India has crossed the $70 Bn mark in the Fiscal Year 2019-20 and recorded a total FDI inflow of $73.45 Bn, ranking amongst the top countries for investments by leading investors. Indian infrastructure story More than $1.5 trillion investments have been planned for Indian infrastructure for the next two decades across the key government...
Read more