Investing in Indian Mutual Funds for NRIs in US and Canada: What You Need to Know

As an NRI from the US or Canada, you’ve likely built a strong financial base. But have you considered diversifying your portfolio beyond your resident country? Look no further than India, your homeland, where exciting opportunities await in the form of Indian mutual funds. Here’s why they deserve a spot in your investment strategy:

1. Tap into India’s Growth Story: India is projected to be the world’s fastest-growing major economy, boasting a young population and rising domestic consumption. This dynamic landscape translates to potentially higher returns for investors in Indian equities and debt markets. Mutual funds, with their professional management and diversification, offer a convenient way to capture this growth.

2. Diversify Your Portfolio: Spreading your investments across different geographies mitigates risk. By including Indian mutual funds, you can diversify beyond US and Canadian markets, protecting yourself from fluctuations specific to those regions. This balanced approach is crucial for long-term wealth creation.

3. Leverage Attractive Tax Benefits: NRIs investing in specific Indian mutual fund schemes (NRE accounts) enjoy tax-exemption on capital gains and dividends. This significantly boosts your returns compared to similar investments in your resident country. Double Taxation Avoidance Agreements (DTAA) further enhance these benefits.

4. Build a Nest Egg for Your Future: Many NRIs dream of returning to India someday. Investing in Indian mutual funds creates a financial runway for your future back home. You can accumulate funds for buying property, starting a business, or simply enjoying a comfortable retirement in your homeland.

5. Convenience and Expertise: Investing in Indian mutual funds is now easier than ever, thanks to online platforms and mobile apps. You can invest from anywhere in the world, with access to a wide range of schemes managed by experienced professionals.

Remember: Every investment comes with inherent risks. Carefully assess your risk tolerance, investment goals, and financial situation before making any decisions. Do your research, consult a financial advisor, and choose funds that align with your objectives.

Ready to explore? Look for mutual funds with a strong track record, experienced fund managers, and a focus on sectors expected to benefit from India’s growth. Remember, investing early and staying disciplined are key to maximizing your returns. So, start exploring the potential of Indian mutual funds and watch your dollars bloom in rupees!

Good news for NRIs living in the US and Canada! You can invest in Indian mutual funds, but there are some key things to keep in mind:

1. Not all fund houses are created equal:

  • 5 fund houses (listed below) allow online transactions without restrictions:
    • Aditya Birla Sun Life Mutual Fund
    • Nippon India Mutual Fund
    • Quant Mutual Fund
    • Sundaram Mutual
    • UTI Mutual Fund
  • 10 fund houses require physical presence in India:
    • 360 One Mutual Fund
    • Axis Mutual Fund
    • DSP Mutual Fund (lumpsum only)
    • ITI Mutual Fund (lumpsum only)
    • Kotak Mutual Fund
    • Navi Mutual Fund
    • PPFAS Mutual Fund
    • SBI Mutual Fund
    • Taurus Mutual Fund
    • White Oak Capital Mutual Fund
  • 5 US-only fund houses accept applications only through physical documents:
    • Bandhan Mutual Fund (US only)
    • Edelweiss Mutual Fund (US only)
    • HDFC Mutual Fund (US only)
    • ICICI Mutual Fund (US only)
    • Motilal Oswal Mutual Fund (US only)

2. Additional requirements for US and Canada NRIs:

  • FATCA details and tax identification number (TIN): You’ll need to provide specific tax information.
  • KYC documents: Prepare your PAN card, overseas address proof, passport, passport photo, and OCI card if needed.
  • NRE or NRO account: You’ll need a rupee-denominated bank account for transactions.


  • This information is not financial advice. Please consult a financial advisor before making any investment decisions.
  • Regulations and requirements can change, so always double-check with the fund house you’re interested in.

I hope this breakdown makes things easier to understand!

The Author

Vaid IQ

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