1. |
Who is a Non Resident Indian (NRI)? |
2. |
What is an Overseas Corporate Body (OCB)? |
3. |
Who is a Foreign Institutional Investor (FII)? |
4. |
What is the difference between an NRE account, NRO account and FCNR account? |
5. |
Can I invest in mutual fund schemes? |
6. |
Do any mutual fund schemes assure returns? |
7. |
Do I need any approvals from the Reserve Bank of India to invest in mutual fund
schemes? |
8. |
Can I invest in foreign currency? |
9. |
How do I redeem? |
10. |
Can I enroll in Systematic Investment Plan (SIP)? |
11. |
How will I be updated on the performance of the schemes? |
12. |
Can I gift units of mutual fund schemes to my relatives in India? |
13. |
Can I repatriate my earnings on redeeming from mutual fund schemes? |
14. |
How will the redemption proceeds be paid? |
15. |
Is the indexation benefit available to NRIs? |
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1. |
Who is a Non Resident Indian (NRI)? |
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A Non Resident Indian (NRI) is an Indian citizen or a person of Indian origin who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an uncertain duration of stay abroad. A person shall be deemed to be of Indian origin if he/she or either of his/her parents or grandparents were born in undivided India. |
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2. |
What is an Overseas Corporate Body (OCB)? |
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An Overseas Corporate
Body (OCB) includes overseas companies,
partnership firms, societies and other corporate
bodies owned predominantly by non-resident
persons of Indian nationality or origin outside
India. |
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3. |
Who is a Foriegn Institutional Investor (FII)? |
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A Foreign Institutional
Investor (FII) is a corporate registered by
Securities and Exchange Board of India. |
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4. |
What is the difference between an NRE account, NRO account and FCNR account? |
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Non-Resident (External)
Rupee (NRE) accounts are Rupee accounts on a
repatriable basis. They can be opened with
either funds remitted from abroad or local
funds, which can be remitted abroad. |
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Ordinary Non-resident
Rupee (NRO) accounts are Rupee accounts and
can be opened with funds either remitted from
abroad or generated in India. The amount in such
accounts is non-repatriable. |
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Fully Convertible
Non-Rupee (FCNR) accounts are similar to the
NRE account except that the funds are held in
foreign currency like US$, £, Dm etc. |
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5. |
Can I invest in mutual fund schemes? |
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Yes, NRIs can invest in any mutual fund schemes. |
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6. |
Do any mutual fund scheme assure returns? |
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No. |
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7. |
Do I need any approvals from the Reserve Bank of India to invest in mutual fund schemes? |
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Yes. Specific approval has
to be taken from RBI. However, most of the AMCs
have taken the permission for NRI investments in
their schemes, hence no permission is required
for investing in the schemes of those AMCs.
Only OCBs and FIIs require prior approvals
before investing in our schemes. |
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8. |
Can I invest in foreign currency? |
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No. All investments have to be in Indian Rupees. A convenient way to invest would be through your NRE account. |
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9. |
How do I redeem? |
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In case of open-ended
mutual fund schemes, you simply fill up the
redemption slip and send it to our offices or
Investor Service Centres of AMCs. The cheques
are normally mailed to you within 3 to 5
business days from the day of receipt of the
redemption request.
Close ended schemes will automatically be
redeemed at the time of maturity of the scheme.
A close ended scheme can be redeemed prior to
maturity subject to necessary exit load and
unamortized issue expenses. |
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10. |
Can I enroll in Systematic Investment Plan (SIP)? |
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Yes. |
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11. |
How will I be updated on the performance of the schemes? |
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You can opt to receive
daily NAVs, weekly performances and other
subscription services over e-mail.
NAVs of all schemes are updated on our web site
every day.
In addition, you will receive quarterly
newsletters from the Asset Management Companies. |
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12. |
Can I gift units of mutual fund schemes to my relatives in India? |
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Yes. |
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13. |
Can I repatriate my earnings on redeeming from mutual fund schemes? |
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If the investment is made
on a repatriation basis, the net income or
capital gains (after tax) arising out of
investment are eligible for repatriation subject
to some compliance.
If the investment is made on a non-repatriation
basis, only the net income, that is, dividend
(after tax), arising out of investment is
eligible for repatriation. |
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14. |
How will the redemption proceeds be paid? |
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The redemption proceeds
will be paid by means of a Rupee cheque payable
to the NRE account of the investor, or else by a
US dollar draft drawn at the then current rates
of exchange subject to RBI procedures, where
investments have been made on a repatriation
basis.
Where investments have been made on
non-repatriation basis, redemption proceeds will
be paid by means of a Rupee cheque payable to
the investor's NRO account.
Accompanying the redemption proceeds is an
updated account statement, a TDS certificate and
a covering letter that mentions whether the
funds were invested out of NRE/FCNR/NRO
accounts. The tax on capital gain is deducted
(as explained below) after taking into
consideration indexation benefits wherever
applicable. |
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15. |
Is the indexation benefit available to NRIs? |
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Yes, in case units are held
for more than twelve months. |
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