{"id":5149,"date":"2018-07-03T12:46:49","date_gmt":"2018-07-03T12:46:49","guid":{"rendered":"http:\/\/s9financialplanners.com\/blog\/?p=5149"},"modified":"2025-02-21T10:21:16","modified_gmt":"2025-02-21T10:21:16","slug":"nri-invest-in-mutual-funds","status":"publish","type":"post","link":"https:\/\/s9financialplanners.com\/blog\/nri-invest-in-mutual-funds\/","title":{"rendered":"Can an NRI invest in Mutual funds?"},"content":{"rendered":"

Let’s not begin directly with the topic “Can an NRI invest in Mutual Funds?” It\u2019s not a surprise when we ask any of our NRI friends about their investments and we get a reply like \u201cI have invested in real estate\u201d. It’s commonly observed that NRI\u2019s have been investing majorly in real estate. It\u2019s a pattern NRI have always followed for a long time. But as we say \u201cDon\u2019t get too comfortable as nothing is permanent\u201d. NRI\u2019s also started realizing this when in the past couple of years the real estate dropped its performance mark. They have started questioning whether investing all their savings into the Real estate is a right decision? <\/span><\/p>\n

Being a culturally rooted country, many of us are too close to family and friends but keeping the emotions aside NRI\u2019s decide to go abroad and choose a good career option in terms of monetary growth as that looks promising to them. All they need is a safe secure future, which is why we all are working for. Aren’t we?<\/span><\/p>\n

However, by following the traditional way of investing in real estate<\/a> has proved not to be working in their favor for 2-3 years. Especially the millennials<\/a> in the past 2-3 years have not made wealth irrespective of their constant investment in real estate. <\/span><\/p>\n

Its basic human nature to question things only when it does not work, so now that people have started noticing the stagnancy in Real estate, the questions of alternative solutions have started coming up. NRI\u2019s often come to us and ask, \u201c Is Investments in Mutual Fund a safer option for NRIs ?\u201d Or \u201c Is it good for an NRI to do investment in Mutual Funds.? \u201c Or\u00a0 <\/span>\u201cCan NRI invest in Mutual funds?\u201d<\/span><\/p>\n

So to answer all these questions let me give you a brief understanding of it.\u00a0<\/span><\/p>\n

Yes, NRIs can invest through Mutual Funds.\u00a0<\/span><\/p>\n

Firstly one needs to understand, you don\u2019t invest in the Mutual fund, you invest through Mutual Funds. Mutual Funds helps us in diversifying our assets. One can invest into fixed income instruments, equities, Gold and even into real estate(going ahead) through Mutual Funds. It helps in professional management and diversifying one’s investment.<\/p>\n

For Conservative types NRI investors, there are options to diversify the investment in debt\/hybrid funds wherein they can protect their capital as well as enjoy some decent growth.<\/p>\n

India is in its supersonic mode when we talk about its growing economy in the world knocking up over 7% GDP growth for many years. The projections of the World Bank and IMF speculate India\u2019s GDP to grow at 7.4% and 7.8% in 2018 and 2019 respectively. If you are an NRI investor<\/a> who intends for long-term wealth then investing in Indian equities through mutual funds is the right <\/span>denotation.<\/span><\/p>\n

Also looking this in wider prospect, Mutual Funds has this dual benefit for any NRI Investor where not only investments are growing but also the rupee value is appreciating against a dollar. The Indian rupee has been in this resolute state and proved to be one of the most persistent currencies in the emanating economies. <\/span>A very steady exchange rate with the US Dollar is been observed FY 2017-18. <\/span><\/p>\n

So be relived on this thought, and know that NRI can\u00a0invest in Mutual Funds. Although, there are Restrictions for US and Canada based NRIs which we kind of believe is expected to change soon. A little sigh of breath is that there are 8 specific fund houses which allow US or Canada based NRIs to invest in which are as below: <\/span><\/p>\n