Mutual Fund Investment For Nris In India- What Do You Need To Know?

Are you an NRI and looking to invest in mutualHow can NRI invest in mutual funds?
funds in India? Read on, this article will guide withAn NRI can invest in mutual fund schemes in India
some of the options available to you in India tothrough the money lying in the credit of NRE/NRO
help you in choosing the right one. Mutual fundaccount or may be through banking channels
investment has gained momentum in India overwhich are approved by the authority. 
past few years and it is a wise decision to investAll you’ll need to do to invest in mutual fund is
in mutual funds for getting good returns.by submitting a duly completed application form
Of late, India has emerged as one of the mostalong with cheques or DD to investor service
productive place for investment across the globe.center. 
The reason why more and more people want toTo invest on mutual funds, it is compulsory to
invest their money in India is because of the fasthave an NRE bank account. General permission
growth which India is witnessing in the recenthas been granted by the Reserve Bank of India
time.to offer mutual fund, subject to few conditions.
The economical grow quite evident with the kindThese conditions are:
of confidence the investors are showing towardsThe investment amount has to be received by
India as a major investment hub.inward remittance through normal banking
With so many investors wanting to invest theirchannels or through debit to an NRE Bank account
money in mutual fund India, it surely has becomeof the investor.
the spotlight of investing map in the world. TheThe net amount of the interest or dividend and
investors feel that their money is in the safeproceeds of units should be remitted through
hands as mutual funds carry minimal risks whennormal banking channels or be credited to NRE
compared to equities and therefore it is a goodbank account of the investor as mentioned by
bet for long term gains.him / her with a condition of payment of
People of Indian origin / NRIs are eligible to investapplicable tax.
in mutual funds in India after taking general 
permission from Reserve Bank of India. Tax liability for income received from NRI mutual
Huge capital returns are encouraging more andfund:
more NRIs to invest in mutual funds of late andSection 10 (35) of Income tax Act, 1961 defines
the results are also overwhelming. that income received from mutual fund
So how do you go about your investing yourinvestment under section 10 (23D) is exempt
money in mutual funds in India? Just read rest offrom income tax. Therefore all dividends are tax
the article.free on NRI mutual fund held by the investor.
As per the provisions of schedule 5 of the foreignHowever any tax that is applicable will be
exchange management an NRI can invest in mostdeducted at source.
of the mutual funds India offers.