💼 Can NRIs Invest in Mutual Funds in India? (Complete 2025 Guide)

Are you an NRI (Non-Resident Indian) looking to grow your wealth back home? One of the most popular and accessible ways is through mutual fund investments in India. But with regulations, taxation, and eligibility rules varying for NRIs, many people wonder — "Can NRIs invest in mutual funds in India?"

The answer is: Yes, NRIs can invest in Indian mutual funds.

In this blog, we’ll break down who can invest, how to do it, which accounts are needed, tax implications, and the best platforms to get started — all updated for 2025.

✅ Who Can Invest?

According to SEBI (Securities and Exchange Board of India), the following categories can invest in Indian mutual funds:

• NRIs (Non-Resident Indians)
• PIOs (Persons of Indian Origin)
• OCIs (Overseas Citizens of India)

They can invest on a repatriable or non-repatriable basis.

🛠️ How Can NRIs Invest in Mutual Funds in India?

Step-by-Step Process:

1️⃣ Open an NRI Bank Account

You’ll need one of the following:

• NRE Account (for repatriable investments)
• NRO Account (for non-repatriable investments)

💡 NRE = funds can be sent back abroad freely

💡 NRO = funds are partially restricted for repatriation (up to $1 million/year)

2️⃣ Complete KYC (Know Your Customer)

KYC is mandatory for mutual fund investments.

Documents required:

• Passport (copy)
• Visa/OCI/PIO card
• Overseas address proof
• PAN card
• Passport-size photo
• FATCA Declaration (for US-based NRIs)

✅ You can complete KYC offline via courier or online via DigiLocker, Aadhaar, or video KYC (depending on the platform).

3️⃣ Choose a Mutual Fund Platform or AMC

You can invest through:

• Directly via AMC (Asset Management Company)
• Online platforms like Kuvera, Zerodha Coin, Groww, or Scripbox
• Banks or financial advisors

4️⃣ Start Investing

Once KYC is done, link your NRE/NRO account to the platform and start SIPs (Systematic Investment Plans) or lump-sum investments in your chosen mutual funds.

💵 Can NRIs from the US & Canada Invest?

Yes, but with limitations.

• Some fund houses do not accept investments from the US or Canada due to compliance with FATCA regulations.
• The ones that do (e.g., ICICI Prudential, UTI, SBI, L&T) may require additional paperwork or in-person documentation.

🔐 Always check with the AMC if they accept applications from your country of residence.

📊 Types of Mutual Funds You Can Invest In

• Equity Mutual Funds (high growth potential, long-term)
• Debt Funds (stable income, low risk)
• Hybrid Funds (mix of equity and debt)
• ELSS (tax-saving under Section 80C)

💡 Tip: ELSS (Equity Linked Saving Schemes) offer tax benefits and are great for NRIs looking for deductions under Indian tax laws.

💰 How Are NRI Mutual Fund Investments Taxed?

📍 For NRE Account Investments (Repatriable):

• Tax will be deducted at source (TDS) before you receive returns.
• You may be able to claim tax credit in your country of residence (check DTAA).

📍 For NRO Account Investments (Non-Repatriable):

• Similar tax applies, but repatriation is limited to $1 million per year with RBI approval.

Type of Fund Holding Period Tax Type Tax Rate (TDS)

Equity Funds > 1 year LTCG 10% (over ₹1L)

Equity Funds < 1 year STCG 15%

Debt Funds > 3 years LTCG 20% (with indexation)

Debt Funds < 3 years STCG (slab-based) Based on income

✅ TDS is automatically deducted, so NRIs don’t need to file in India unless claiming a refund or extra deductions.

🧾 Important Regulations for NRIs

• FATCA Declaration is mandatory for all NRIs
• Repatriation rules depend on whether the investment is from NRE or NRO
• Double Tax Avoidance Agreements (DTAA) can help reduce tax liability

📈 Best Mutual Fund Platforms for NRIs in 2025

Platform NRI Friendly US/Canada Allowed? Key Features

Kuvera ✅ Yes ❌ Limited Direct plans, goal-based investing

Groww ✅ Yes ❌ No Easy interface, SIPs

Zerodha Coin ✅ Yes ❌ Limited Linked to demat

ICICI Direct ✅ Yes ✅ Yes (extra steps) Trusted bank platform

Scripbox ✅ Yes ✅ Limited Handpicked portfolios

✍️ Final Thoughts

Yes, NRIs can absolutely invest in mutual funds in India, and it’s one of the smartest ways to keep your money growing while staying connected to the Indian economy.

Just make sure to:

• Choose the right bank account
• Complete your KYC
• Understand repatriation and taxation rules
• Invest through trusted, NRI-compliant platforms