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Mutual Funds for Australia-Based NRI Investing in India
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Indians are Australia's third-largest immigrant community. Over the last few years, a large number of Indians have migrated to Australia to study and work. NRIs and PIOs (Persons of Indian Origin) in Australia are entitled to apply for numerous financial and banking services in India, including NRI bank accounts, stock, mutual fund, and exchange-traded fund (ETF) investments, and so on. However, unlike resident Indians, NRIs in Australia have limited access to mutual funds. NRIs who want to invest in mutual funds in India must adhere to the Foreign Exchange Management Act's significant requirements and regulations (FEMA). 

Best mutual funds for Australian NRIs 

Here are some of the asset management organizations (AMCs) that provide mutual funds to Australian NRIs: 

  • L&T Mutual Fund Sundaram Mutual Funds Sundaram Mutual Funds Sundaram Mutual Funds Sundaram Mutual Funds 
  • UTI Mutual Fund is a mutual fund that invests in India. 
  • BNP Paribas Mutual Fund is a mutual fund managed by BNP Paribas. 

The requirements for accepting investment from NRIs based in Australia differ for each AMC. While some mutual fund institutions exclusively accept paper application forms, others accept online applications through the NSE NMFII or BSE STAR MF systems. 

Mutual funds with the best performance for Australian NRIs 

Here are some of the best-performing mutual funds for NRIs from Australia based on prior years' performance. 

Funds 

Net Assets (Cr) 

3 Mo 

6 Mo 

1 Yr 

3 Yr 

5 Yr 

L&T Emerging Businesses Fund 

Rs. 5,774 

17.7 

44.3 

118.9 

7.4 

18 

L&T India Value Fund 

Rs. 6,741 

5.3 

25.8 

80.8 

9.6 

14.7 

Sundaram Rural and Consumption Fund 

Rs. 1,336 

0.5 

13.8 

51.3 

5.6 

11.8 

UTI Banking & PSU Debt Fund 

Rs. 273 

1.1 

1.2 

5.3 

4.6 

5.8 

UTI Dynamic Bond Fund 

Rs. 221 

0.8 

0.5 

3.9 

1.9 

4.5 

L&T Business Cycles Fund 

Rs. 525 

2.4 

23 

80.8 

5.6 

11.6 

Sundaram Mid Cap Fund 

Rs. 6,152 

2.5 

25.2 

76.2 

4.8 

11.2 

L&T Midcap Fund 

Rs. 6,428 

25 

73.9 

8.2 

15.7 

L&T Tax Advantage Fund 

Rs. 3,407 

4.2 

20.3 

68 

7.5 

13.5 

BNP Paribas Multi Cap Fund 

Rs. 520 

5.5 

25.3 

66.3 

11.2 

13.3 

For Australian NRIs who want to invest in mutual funds, they must go through a KYC process 

  • Form for proving your identity: NRIs must fill out a KYC form with all of the required information and submit it to a SEBI-registered intermediary. They might send the documents to the intermediary by courier or postal service. 
  • Documents: Submission of the following documents are required: 
  • Proof of address in another country 
  • A copy of your passport as verification of your Indian address 
  • A photograph was taken recently 

A mariner's declaration or a certified copy of the Continuous Discharge Certificate is required of NRIs in the Merchant Navy. 

  • NRIs in Australia can get their documents attested by any of the following entities: authorized personnel of scheduled commercial banks registered with the RBI, judge/court magistrate, Public Notary, or Indian Embassy/Consulates in Australia. Power of Attorney (POA):
  • In-Person Verification (IPV): For NRIs investing in mutual funds, in-person verification is required. IPV can be done by video conference with representatives from the mutual fund house where you plan to invest. 

Australian mutual funds for non-resident Indians (NRIs): How to Invest? 

  • Direct/self-investment: Through their rupee-denominated NRE/NRO account, NRIs can begin investing in mutual funds in India. Download copies of mutual fund KYC forms from the mutual fund houses' websites. You can also perform in-person verification at the Indian Embassy in Australia. 

  •  NRIs can appoint a Power of Attorney in India to invest in NRI mutual funds on their behalf. KYC compliance is required of the appointed POA. The KYC documentation that you submit to the relevant mutual fund business should have the signatures of the NRI and POA. 

Conclusion  

NRIs should seek advice from market specialists before investing in the Indian market. At Afinoz.com, you may get detailed mutual fund advice from professionals. You may also ask any queries about mutual fund investment, NRI account opening online, and tax filing in India by using the Afinoz App from the Google Play Store or App Store. Click the button below to ask any inquiries about mutual funds. For further information, please see our blog on the Afinoz website. 

Read More:-

1. 11 Mutual Fund myths busted

2. 5 Common Mistakes NRIs Make When Investing in India