Invest in Mutual Funds
Post on: 16 Март, 2015 No Comment
Why Indian Funds?
India has a plenitude of options for investment. You have a range of avenues to invest your personal finance. It depends on your appetite for risk. As the saying goes — no risk, no gain. The Indian economy is a burgeoning one. There are plenty of sectors that are fast growing — higher than anywhere in the world. But along with fast growth, comes risks.
In India, you can choose to invest in fixed deposits, postal deposits, recurring deposit schemes, equities, mutual funds and so on. If gold investments and property is a hot market today, bonds and commodity trading are hot investment opportunities tomorrow. Depending on the flavor of the season, there’s always ample opportunity to make a quick buck with your investments.
However, no such investment in mutual funds or any other financial asset should be made without proper investing advise from a qualified adviser. So if you need better returns; just write into us and our financial consultant will help you invest in the best mutual fund schemes that can give you some real good and high returns.
Some history about the Mutual Fund Industry here.
One of the most dynamic sectors of the Indian economy is seen to be the mutual fund. Investment in mutual fund has grown in a rather spectacular fashion in the last decade. The total asset of the mutual fund industry has increased from $17.7 billion in 1999 to $26.4 billion in 2004. This implies an annual appreciation rate of more than 8%. This is only the value of the assets.
Add the increase in the income generation and the mutual funds are seen to be one of the leading players in the Indian economy. The Reserve Bank of India has now given permission to both the nonresident Indian (NRI) and a person of Indian origin (PIO) to invest in the mutual funds. As one of the fastest growing sectors in the economy, mutual funds have attracted a lot of interest among the NRI investors.
Why a NRI should choose to invest in mutual funds of India?
Here are the major reasons why NRIs are showing more and more interest in investing in Indian mutual funds:
- While the mutual funds market in developed countries like USA has a much broader base and custom made plans for any eventuality, the fact remains that the mutual fund returns are growing at a much faster rate in India than in the developed countries. The market is much bigger in USA, but the rate of growth is higher in India.
- Indian economy is being reformed since 1991. This is one of the factors which facilitated the high level of performance of the Indian mutual funds. With proactive role of your fund manager in an under researched market, the scope of growth of mutual funds is huge.
- You can organize your investment in many different ways when you invest in mutual funds. You can opt for systematic investment plan, dividend reinvestment etc.
- When you are looking for diversity in order to minimize your risk, the mutual funds are your best option.
- These are one of the easiest assets to liquidate for the NRIs as compared to other assets like real estate.
- Finally, low cost, high rate of return and availability in small units are other reasons why Indian mutual funds are becoming more and more popular with NRI investors.
The Process — How to invest in Mutual Funds from India?
In order to invest in mutual funds, you will have to open either one of three types of bank accounts because all investments must be in Rupee. These three types are:
- Nonresident external rupee account (NRE) — the money can be send back to your country of residence and the account can be opened with local or foreign funds.
- Nonresident ordinary account (NRO) — is a rupee account and the amount cannot be repatriated.
- Foreign Currency nonresident account (FCNR) — it is same as NRE but deposits can be made in US Dollar, pound, yen, Euro. It has a maximum tenure of five years.
- When you invest using a check, you will require a certificate from the bank clarifying the source of the funds. Alternatively, you can also provide a foreign inward remittance certificate.
- In order to ensure smooth management of your mutual fund, a NRI can give the power of attorney to someone to manage these funds. He can also have an Indian nominee or an Indian joint holder.
- Redemptions are made in Rupees either by check or direct transfer to your account.
- Tax is deducted at source for NRI investors unlike the Indian investors. If your country of residence has the DTAA (Double taxation avoidance agreement) with India, you will not have to pay tax after repatriation.
Who are we? NriInvestIndia.com is one of the leading distributors of various mutual funds from India, coming from well reputed AMCs (asset management companies) like: Reliance Mutual Funds, HDFC Mutual Fund, Birla Sunlife Mutual Funds, ICICI prudential Mutual Fund, Principal Mutual Fund, HDFC Mutual Funds, Tata Mutual Fund, UTI Mutual Fund, SBI-Magnum Mutual Fund, Kotak Mahindra Mutual Fund. We also assist NRIs to open a mutual fund trading account in India.
Our aim is to not only assist Indian residents but also Non Resident Indians & Foreign citizens and nationals, PIOs & OCIs living outside India to make investments in Indian mutual funds of India online.
Don’t miss professional Online Investment Advising.
Our in-house professional AMFI certified investment advisors provide online advise to non resident Indians & foreign nationals, expats to identify top performing mutual fund schemes in India that suit their investments profile & long term financial goals and objectives; with highest rate of returns. If you are looking to open a mutual fund account through which you can get todays nav or current market price of various funds, then email us.
You can invest in Indian funds even if you are NOT a Citizen of India?
As per the new circular passed by SEBI — Securities Exchange Board of India, citizens from other countries, meaning foreign nationals who are non Indian citizens can also trade live or make investments in real time in the mutual funds provided they come as a QFI -Qualified Foreign Investor.
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