Investment opportunities for NRIs in India

All over the world you will find Indians, their roots are still strong and they have an unbreakable link with their native country. Most of the NRIs have families living in India and want to invest something for them. Many NRIS want to come back to India at a later date so want to invest here.

Basically there are a few formalities that have to be completed by the NRIs after which they can invest in India. The main documents needed are PAN card, ID Proof and Address Proof, a KYC certificate for Mutual Fund investment above Rs.50,000/- and Passport size Photographs are required. They also need to open a Non-Resident External Account that is a Dollar Account, or Non-Resident Ordinary Account that is a Rupee Account is needed. The difference between these two accounts is that the investments made and the returns got from those investments, using the NRE account can be sent back to other countries.

NRIs can invest directly in any mutual fund from their account. You can invest either one time investment or in systematic investment plan or quarterly, etc. The amount invested in Mutual funds can be repatriated fully.

To make the investment the KYC forms is to be filled and then the investor will be sent a communication stating that the investor is verified. A copy of this letter has to be attached will all the transactions done in the mutual fund, whether it is investment or withdrawals for an amount above Rs.50, 000/-.

The forms for investment can be downloaded from the site of the mutual fund and the NRI could sign the form and sent it back to the Mutual Fund Company, or a broker if he has appointed any or relative and sent it to the Fund Office.

The NRIs can invest in share with a demat account, but they have to take RBI approval for each transaction. It can be tedious so it will be easier to invest in Mutual funds.