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Mutual Funds for NRIs from the UK to Invest in India

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22 Dec 2021 | 5 min read

NRIs are available across the world from the Middle East to the UK and the USA. There are about 3.25 lakhs NRIs living in the United Kingdom. Once the applicants earn a decent income, Indians who are living abroad explore investment options easily for the NRI applicants in India. Mutual funds are a great option to earn a higher income as compared to traditional investment options. Some of the important guidelines and rules set by the Foreign Exchange Management Act (FEMA) are to invest in mutual funds of NRIs.  

Best mutual funds for NRIs from the UK  

Here are some of the mutual fund investment options for UK based NRIs, based on years’ return:  

Funds 

3 Mo 

6 Mo 

1Yr 

3 Yr 

5 Yr 

2022

ICICI Prudential Technology Fund 

7.4 

31.5 

130.6 

29 

22.2 

70.6 

Nippon India Pharma Fund 

13.6 

26.3 

62.1 

28.1 

16.5 

66.4 

Aditya Birla Sun Life Digital India Fund  

7.8 

30.4 

111 

26.9 

22.4 

59 

Tata India Pharma and Healthcare Fund 

9.3 

20.1 

52.6 

25.4 

11.5 

64.4 

UTI Healthcare Fund 

12.4 

22.1 

60.5 

25.3 

12.2 

67.4 

PGIM India Global Agribusiness Offshore Fund 

-17.5 

-0.3 

38 

25.1 

18.9 

72.4 

Tata Digital India Fund 

31.8 

107.1 

24.7 

21.1 

54.8 

SBI Healthcare Opportunities Fund 

10.4 

24.1 

61.1 

24.7 

9.7 

65.8 

SBI Technology Opportunities Fund  

7.2 

27 

82.7 

23.7 

19.4 

47.3 

Franklin India Technology Fund 

-2.8 

14.9 

76.2 

22.6 

18.7 

56.8 

Mutual fund investment rules for NRIs  

Mutual funds, exchange-traded funds (ETFs), stocks, and other investment choices for NRIs in India include mutual funds, ETFs, and equities. NRIs must adhere to the Foreign Exchange Management Act 1999's investing requirements in order to invest in any of the financial products (FEMA). Whereby investment in India's capital market is only permitted if certain conditions are met, such as the opening of a rupee-denominated NRI account, KYC verification, and so on, as outlined below: 

  • NRI KYC: To invest in mutual funds in India, NRIs must complete the KYC process by submitting the relevant documents. Some AMCs demand authentication in person. 
  • FIRC (Foreign Inward Remittance Certificate): If you invest in funds with a check or a demand draught, you must include a FIRC (foreign inward remittance certificate) (FIRC). Alternatively, a note from the bank confirming the source of funds could be considered. 
  • Redemption: After deducting any taxes, the fund house will credit returns (investment + profits) to your account when you redeem your fund units (if any). You can also get paid with a check. Some banks allow redemption proceeds to be credited straight to an NRO/NRE account. 

Mutual funds for NRIs in the UK: Procedure of investment  

Here are some of the following mutual funds for NRIs in the UK for investment procedure are as follows:  

  • Direct/self-investment: Through their NRI (NRE/NRO) account, NRIs can invest directly in funds in India. On the websites of mutual fund companies, KYC forms are available. NRIs can also complete in-person verification at the Indian Embassy in the United Kingdom. 
  • Power of Attorney (POA): In India, you can choose someone to invest in mutual funds on your behalf. Check to see if your POA is KYC compliant. Both applicants' signatures should appear on the KYC documentation you provide to the appropriate AMC. 

Conclusion  

NRIs get advice from market specialists before investing in the Indian market. At Afinoz, you may get detailed mutual fund advice from professionals. You can ask any queries about mutual funds, online NRI account, and tax filing in India by downloading the Afinoz App from the Google Play Store or App Store. Click the button below to ask any inquiries about mutual funds. For additional information, you can also check out the blog section of Afinoz or contact one of our specialists. 

Read More:- 

1. 11 Mutual Fund myths busted

2. 5 Common Mistakes NRIs Make When Investing in India 

 

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