NRI Corner
Welcome to the NRI Corner at Align Investments!
India has emerged as a prime investment destination for Non-Resident Indians (NRIs) and persons of Indian origin. With a thriving economy, a robust Rupee, and flourishing companies, investors can expect maximum returns from both equity and debt markets. Our extensive experience in the market allows us to capitalize on this favorable environment to help NRIs achieve their investment goals.
Service Offered for Non-Resident Indians:
- NRI Strategy: We facilitate the process for NRIs to repatriate funds into India by opening NRE accounts, ensuring seamless transactions.
- Goal Definition: Investors define their investment objectives, allowing us to tailor a mutual fund portfolio that aligns with their goals and risk tolerance.
- Mandate Holder: NRIs have the flexibility to appoint a mandate holder, such as Mr. X or a trusted individual, to implement the investment strategy on their behalf, streamlining the process without delay.
- Continuous Monitoring: We continuously monitor the performance and progress of the portfolio, refining the strategy as needed and conducting portfolio rebalancing to optimize returns.
- Regular Updates: Investors receive regular updates on their portfolio, keeping them informed and engaged in their investment journey.
Investing in stocks and mutual funds entails market risks, and investors are advised to carefully read the offer documents and consult their investment advisor before making any investment decisions.
With our user-friendly platform and seamless processes, managing your investments from overseas has never been easier. Stay connected with your financial goals and let Align Investments be your trusted partner in achieving long-term financial success, no matter where you are in the world.
Why invest in India?
- In the last 15 years, India has been amongst the top 10 fastest growing economies
- By 2030, India’s working –age Population is expected to exceed 1bn. On the other hand, the population is rapidly ageing in the developed world.
- 25% of incremental global workforce over the next decade is expected to come from India.
- Countries with a larger share of the working population ( Appox 60%) to the total population are likely to witness higher GDP growth rates.
- India is where China was in 2006,( China’s growth in next 10 years (CY06-16) was 14.5)
- Annual House holds Income 3.87 Lakh in 2010 to 5.24 Lakh in 2019 & Expected to grow 7.32 Lakh in 2030.
- 34 million new households (HH) likely to enter Aspirers category while 43 Mn House hold to enter Affluent & Elite category by the end of this decade.
- By 2030, India will have more than 50% of household in the middle and higher income group which leads to higher consumption share in the economy
- India is now world’s largest digital economy. (E Commerce users -2nd largest in the world, internet subscribers – 2nd largest in the world, telecom subscribers- Largest in the world)
- India is 3rd Largest Manufacturer of pharmacy in terms of Volume & 14th in Value
- PLI Scheme to attract investment of 1.50 trn Over the next 5 Year.
- PLI scheme will not only promote Manufacturing But will also create huge employment Opportunities in India.
- Renewable energy share targeted at 40% of cumulative power generation by 2030
- India is world’s 3rd largest energy market and is expected to be the fastest growing energy market globally through 2050
- From Traditional Stock trading in 1990 to dematerialization in 1996 and the emergence of mobile trading in 202, daily market volume soared from 100 crores to 80,000 crores
- India has the third-largest group of scientists and technicians in the world.
- 1.35 Bn Indians are covered under Aadhar Scheme, one of the world’s largest social security programs.
Investment Avenues:
- NRIs are permitted to invest in mutual funds both on repatriable as well as non repatriable basis. There is no limit for investment in domestic mutual funds.
- NRIs are permitted to purchase non-convertible debentures of Indian Companies, Fixed Deposits with Public Limited Companies, commercial papers issued by Indian companies, bonds issued by Public Sector Units (PSU’s).
- NRIs are permitted to invest in Government securities through primary dealers.
- NRIs can make investments in shares and convertible debentures of Indian Companies both on repatriation and non repatriation basis.
Please Note: If you are a 1st time investor in mutual fund then needs to do ‘KYC (Know your client)’.This is a onetime process required to invest in mutual funds.)
For KYC, you need to submit few given required documents:-
- Indian PAN card copy (Self attested)
- Passport Copy (Self attested)
- Domestic address proof (Self attested)
- If POI,the POI card (compulsory)
- Overseas Address Proof copy like Utility Bill, Driving license etc (Must be in English, if not need to translate by registered translator)- ( Self attested)
- Passport size photos
- Fully Filled & Signed KYC form
Other Requirement/ Detail
Fully Filled FATCA Copy (With TIN or SSN No)
Eligible Mutual Fund Companies or Asset Management Compnaies For USA- Canada Resident.
While NRIs from other countries can invest in mutual funds in India without any hassle, US/Canada based NRIs are faced with certain cumbersome compliance requirements under FACTA (Foreign Account Tax Compliance Act) to invest in mutual funds in India.
Nevertheless, many mutual fund houses allow NRIs based in the USA and Canada to invest in India in a hassle-free manner, but the options are limited. Let’s look at the mutual funds for NRIs from USA/Canada to invest in India.
Read More
| Sr No | AMC Name | USA | CANADA | Remark / Declaration |
| 1 | Aditya Birla SL AMC limited | Accept | Accept | |
| 2 | Axis Mutual Fiund | Accept | Accept | Physical Application Only With Declaration |
| 3 | Bajaj Finserv Asset Management Co Ltd | Accept | NOT Accepted | Physical Application Only With Declaration |
| 4 | Bandhan Mutual Fund | Accept | NOT Accepted | Physical Application Only With Declaration |
| 5 | DSP Investment Managers Pvt Ltd | Accept | NOT Accepted | Physical Application Only With Declaration |
| 6 | Edelweiss Asset Management Pvt ltd | Accept | NOT Accepted | Physical Form With Valid Visa Copy & Passport Copy |
| 7 | HDFC Asset Management Co Ltd | Accept | NOT Accepted | Physical Form With Valid Visa Copy & Passport Copy |
| 8 | ICICI Prudential AMC Ltd | Accept | NOT Accepted | Physical Application Only With Declaration |
| 9 | IIFL asset Management Ltd | Accept | Accept | |
| 10 | IDBI Mutual Fund | Accept | Accept | |
| 11 | ITI Asset Management Fund | Accept | Accept | Physical/ Online Possible |
| 12 | Kotak Mahindra AMC Ltd | Accept | Accept | Physical Application Only With Declaration |
| 13 | Mahindra Manulife AMC Ltd | Accept | NOT Accepted | Physical Application Only With Declaration ( Only Lumpsum) |
| 14 | Motilal Oswal AMC Ltd | Accept | ||
| 15 | NAVI Mutual Fund | Accept | Accept | |
| 16 | Nippon India AMC Ltd | Accept | Accept | Physical/ Online Possible + Declaration Form Required |
| 17 | PPFAS Asset Management Pvt Ltd | Accept | Accept | Physical Application Only With Declaration |
| 18 | Quant MF | Accept | Accept | Physical/ Online Possible |
| 19 | Samco asset Management Ltd | Accept | Accept | |
| 20 | SBI Fund Management Ltd | Accept | Accept | Physical Application Only With Declaration |
| 21 | Sundaram Mutual Fund | Accept | Accept | Physical/ Online Possible |
| 22 | Tata Asset Management Ltd | Accept | Accept | |
| 23 | Taurus Asset Mgt Co Ltd | Accept | Accept | |
| 24 | Trust Asset Management Pvt Ltd | Accept | Accept | |
| 25 | UTI Mutual Fund | Accept | Accept | |
| 26 | White Oak Asset Management Limited | Accept | Accept | Physical Application Only With Declaration |
Taxation for NRIs — FY 2025-26 & Beyond
1. Capital Gains — Equity Shares & Equity-Oriented Mutual Funds
| Applicable Tax Rates on Capital Gains on Mutual Funds for NRIs | |||
| Type of Gain | Holding Period | Tax Rate (FY 2025-26 onwards) | Exemption |
| Short-Term Capital Gains (STCG) | Holding ≤ 12 months | 20% + surcharge & cess | — |
| Long-Term Capital Gains (LTCG)per FY exemption for total equity LTCG | Holding > 12 months | 12.5% + surcharge & cess | ₹1,25,000 |
Key points:
- The ₹1,25,000 exemption applies to total LTCG from all equity shares and equity-oriented mutual funds combined, in one financial year.
- No indexation benefit is available on these equity gains.
- If total LTCG does not exceed ₹1,25,000 in a year, there is no tax liability, though TDS may still be deducted by AMCs or brokers.
2. Debt / Non-Equity Mutual Funds
For investments made on or after 1 April 2023, all gains are taxed at the investor’s slab rate, regardless of holding period.
- Indexation benefit is not available for such investments.
These include:
- Debt mutual funds
- Gold funds
- International funds
- Most hybrid funds (where equity < 65%)
3. Other Assets — Property, Gold, Unlisted Shares, etc.
| Asset Class | Long-Term Holding Period | LTCG Tax Rate |
| Property / Real Estate | > 24 months | 20% + surcharge & cess |
| Gold / Physical Assets | > 36 months | 12.5% + surcharge & cess |
| Unlisted Shares / Private Company Shares | 24 months | 12.5% + surcharge & cess |
Note: Earlier indexation benefits and higher 20% rate have been replaced by the flat 12.5% rate for disposals from 23 July 2024 onwards.
4. TDS (Tax Deducted at Source) for NRIs
AMCs, brokers, or buyers must deduct TDS when paying NRIs for sale proceeds of securities or property.
Equity mutual funds / equity shares:
LTCG — TDS @ 12.5% + surcharge & cess
STCG — TDS @ 20% + surcharge & cess
Non-equity mutual funds / debt funds / property:
TDS deducted at rates matching the tax treatment (slab rates for debt MFs, 12.5% for LTCG on property, etc.)
If actual tax liability is lower, NRIs can claim a refund by filing an Income Tax Return (ITR).
NRIs are taxed in India only on income sourced in India. Global income is taxed in their country of residence.
Double Taxation Avoidance Agreements (DTAA) prevent double taxation.
If tax is paid abroad on income also taxable in India, NRIs can claim foreign tax credit by filing Form 67 with their ITR.
Residency status is determined by number of days spent in India:
NRI if stay is less than 182 days in India during a financial year (or other specific thresholds for the preceding two years).
Equity mutual funds / equity shares:
LTCG — TDS @ 12.5% + surcharge & cess
STCG — TDS @ 20% + surcharge & cess
Non-equity mutual funds / debt funds / property:
TDS deducted at rates matching the tax treatment (slab rates for debt MFs, 12.5% for LTCG on property, etc.)
If actual tax liability is lower, NRIs can claim a refund by filing an Income Tax Return (ITR).
Disclaimer
This information is for guidance only and based on tax laws effective from 23 July 2024 onwards. Tax rules can change and may vary by country of residence.
Please consult a qualified tax advisor before making investment or filing decisions.