Just as foreign portfolio investors consider India as one of the best growing economies and hence attractive from an investment standpoint, NRIs too can benefit from a growing ‘home economy’ by investing in India. Taking the mutual fund route is one of the options.
As per the provisions of Foreign Exchange Management Regulations, 2000, NRIs can invest in mutual funds either on a repatriable or non-repatriable basis.
If the amount is invested by inward remittance from overseas through normal banking channels or from NRE/FCNR account of the non-resident investor, then the investments can be repatriated.
Mutual fund schemes can be offered on a non-repatriation basis, if funds for investment are provided by debit to the NRO account of the investor. Funds may also be invested on a non-repatriable basis by inward remittance or by debit to NRE/FCNR account.
