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Mutual Fund Investor Education
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NRI Guide to Investing in Mutual Funds 
The following information will address most issues that Non Resident Indians/Person of Indian Origin (PIO)/Foreign Institutional Investor (FII) might have, with respect to mutual fund investments in India. In view of the individual nature of implications, each investor is advised to discuss with his / her own investment and tax advisors the specific tax and other implications arising out of their participation in mutual fund schemes.
Who is a Non-Resident Indian (NRI)?
 
 

The following are the main three categories of NRIs:-

An Indian citizen who stays abroad for employment or for carrying on business or vocation or under circumstances indicating an indefinite period of stay abroad
Indian citizens working abroad on assignments with foreign governments or international agencies like UNO (United Nations Organization), International Monetary Fund (IMF), World Bank etc.
Officials of Central and State Government and Public Sector Undertakings deputed on temporary assignments or posted to their offices, including Indian diplomat missions, abroad.
 
Who is a Person of Indian Origin (PIO)?
 
 

A Person of Indian Origin means a citizen of any country other than Bangladesh or Pakistan, if:-

He, at any time, held an Indian passport or
He or either of his parents or grand parents was a citizen of India by virtue of the Constitution of India or Citizenship Act, 1956 (57 of 1955) or
The person is a spouse of an Indian citizen or person referred to in a. or b. above
 
Who is a Foreign Institutional Investor?
 
 

FII means an institution established or incorporated outside India, which proposes to make investments in Indian securities and is registered with SEBI. Sub-Account means a person resident outside India, on whose behalf an FII proposes to invest in India. FIIs and Sub-accounts have to obtain registration certificate from SEBI and are governed by the SEBI (Foreign Institutional Investors) Regulations, 1995.

 
Can a NRI / PIO / FIIs invest in mutual fund schemes in India?
 
 

Yes, NRI/PIO/FIIs can invest in mutual fund schemes in India. However, persons residing in any Financial Action Task Force non-compliant countries or territories, United States Person (U.S. Person), corporations and other entities organized under the applicable laws of the United States of America and Residents of Canada as defined under the applicable laws of Canada.

 
Can a NRI / PIO maintain a bank account in India?
 
 

Yes. NRIs / PIOs can maintain accounts in Indian rupees as well as in foreign currency.

 
Can NRIs / PIOs invest foreign currency in mutual fund schemes in India?
 
 

No. Only Indian rupees can be invested in mutual fund schemes in India.

 
In that case, what are the different types of rupee accounts that NRIs / PIOs need to maintain for investing in mutual fund schemes in India?
 
 

The types of rupee accounts that can be maintained by NRIs / PIOs for investing in mutual fund schemes in India are as follows:

NRE Account: Non-Resident (External) Rupee Account
NRO Account : Non-Resident Ordinary Rupee Account
FCNR (B) : Foreign Currency (Non-Resident) Account (Banks)
SNRR : Special Non-Resident Rupee Account
 
What is the distinction between NRE and NRO Accounts?
 
 
Funds held in NRE accounts can be repatriated abroad freely. They can also be used for local payments in rupees.
Funds held in NRO accounts cannot be repatriated abroad. They can be used for local payments in rupees only.
 
Do NRIs / PIOs require any approval from the RBI to invest in mutual fund schemes?
 
 

No special approval is required. NRIs/FIIs have been granted a general permission by RBI [Schedule 5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000] for investing in/redeeming units of the schemes subject to conditions set out in the aforesaid regulations.

However, PIO's need to attach a copy of the PIO card with the application form at the time of investing.

 
Who Issues PIO Cards? How to get a PIO Card?
 
 

Person of Indian Origin (PIO) Cards are issued by Ministry of External Affairs (CPV Division), Government of India to persons of Indian origin through Indian missions abroad. Specific information on rules, forms, particular offices, missions is available on the website www.passport.nic.in

 
What is the mode of payment for buying units of an Indian mutual fund scheme?
 
 

Repatriation Basis

Payments by NRIs / Persons of Indian Origin (PIO) residing abroad / FII may be made either by way of Indian Rupee drafts or cheques by means of (i) inward remittance through normal banking channels; or (ii) out of funds held in NRE / FCNR account payable at par and payable at the cities where the Official Points of Acceptance are located.

In case of Indian Rupee drafts purchased abroad or subscription through NRE/FCNR Account, an account debit certificate from the bank issuing the draft confirming the debit / Foreign Inward Remittance Certificate (FIRC) should also be enclosed.

In case the debit certificate / FIRC is not provided, the AMC reserves the right to reject the application of the NRI investors.

Non Repatriation Basis

NRIs or Person of Indian origin residing abroad investing on a non-repatriable basis may do so by issuing cheques / demand drafts drawn on Non-Resident Ordinary (NRO) account payable at the cities where the Official Points of Acceptance are located.

 
How will the redemption / dividend proceeds be paid?
 
 

If the investor has provided sufficient details for electronic credit, the Fund will give direct credit for redemption/dividend proceeds into the investor’s bank account and such instruction will be adequate discharge of the Fund towards the said payment. In case the credit is not effected by the Unitholder’s banker for any reason, the Fund reserves the right to make the payment by a cheque/ Demand Draft. The cheque will be payable to the first unitholder and will include the bank account number.

Redemption proceeds/repurchase price and/or dividend or income earned (if any) will be payable in Indian Rupees only.

 
How can the redemption proceeds be repatriated?
 
 

Where the investment is made out of inward remittance or from funds held in the NRE account of the investor, the maturity proceeds/repurchase price of units (after payment of taxes) will be credited to the specified NRE account.

The same can be remitted abroad freely by the investor.

 
What about redemption proceeds from investments made on a non-repatriable basis?
 
 

Where the purchase of units is made on a non-repatriable basis, the maturity proceeds / repurchase price of units (after payment of taxes) will be credited to the specified NRO account of the investor.

 
Are redemption proceeds transferred to a NRI's / PIO's overseas account?
 
 

No. Redemption proceeds will be transferred to a specified NRE / NRO account only.

 
What are the tax provisions for investments in mutual funds by NRIs/PIOs?
 
 

For details on the same, please click here.

 
What is the tax liability for income received from your mutual funds?
 
 

As per Section 10(35) of the Income Tax Act, 1961, income received from mutual fund units specified under Section 10(23D) is exempt from income tax in India and the mutual funds are subject to deduction of distribution tax in debt oriented schemes. Hence all dividends are tax-free in the hands of non-resident investors and no TDS is applicable on the same.

 
Can NRIs / PIOs avail of the indexation benefit?
 
 

Yes. Indexation benefit can be avail in respect of units held for more than 12 months.

 
Can a Power of Attorney (POA) holder invest on behalf of the NRI investor?
 
 

Yes. The POA holder needs to sign applicable documents and then he can execute transactions on behalf of the NRI investor.

However, POA holder must submit the original POA or copy, duly notarized along with first time purchase.

 
Is nomination by NRIs / PIOs allowed?
 
 

Yes.

 
Can a resident Indian have an NRI as nominee?
 
 

Yes, the same rules apply for nominees to resident Indian accounts. An NRI can be a nominee to an account which is in the name of a resident Indian.

 
Do NRIs / PIOs have to comply with 'Know Your Client' (KYC) guidelines?
 
 

Yes. For details on the same please click here.

 
What is the procedure to change the Tax status from NRI to Resident Indian or vice-versa?
 
 

The investor needs to submit the following documents to the AMC for a change in tax status:

  1. Letter from the investor mentioning the changes
  2. KYC acknowledgment letter reflecting the change in status
  3. Cancelled cheque of the new bank account with Resident Indian (RI) or Non-Resident Indian (NRI) status
 
FAQ to Investing in Mutual Funds 
Who Can Invest Online?
 
 

The following investor segments can invest online:-

Resident Indian Individuals, either single or jointly (limited to 3 joint applicants)
Non-Resident Indians and Persons of Indian origin residing abroad
Parents/ Lawful guardians on behalf of minors
 
Give More Details On This Online Investment Facility Offered By Invesco Mutual Fund?
 
 

It is a user-friendly interface for our investors; to conveniently transact and manage their investments in our schemes online. This powerful interface will provide total access to all our funds and services and contains useful tools to help you manage your investments.

 
What Features Does This Facility Offer To Me?
 
 

This facility offers you the following broad features:-

 

Transaction Services

Invest in new schemes or top up your existing holdings
Redemption of units
Switch from one Invesco Mutual Fund scheme to another

Account and Portfolio Services

View and print complete history of all your transactions
View and print your account statements
View and print Capital Gains Statement

Navs

See daily NAVs for all our funds
Selectively add NAVs to a 'Watch List'
 
To Use This Facility, What Are The Pre-Requisites?
 
 

The pre-requisites to use this facility are:-

Permanent Account Number - required irrespective of the investment amount
Know Your Client (KYC) Compliance
Bank Account - with the designated banks mentioned below.
 
How Do I Register For This Facility?
 
 

The registration process is outlined below:-

Log on to https://invest.invescomutualfund.com and click on 'New Investor'
On a successful purchase request, you will be guided to the payment gateway, where you have to select the designated bank where you have an bank account.
After successful fund transfer from your bank account, you will receive an email confirmation of purchase request at your registered email address.
You have to send the copy of the cancelled cheque with your name imprinted on the cheque leaf/Bank statement to mfservices@invesco.com within 10 days from the date of purchase request. In case we do not receive the documents within 10 days, then the subscription amount would be refunded.

REGISTRAR & TRANSFER AGENT CORPORATE OFFICE Karvy Fintech Pvt. Ltd. Unit: Invesco Mutual Fund, Karvy Selenium Tower B, Plot No 31 & 32, Gachibowli, Financial District, Nanakramguda, Serilingampally, Hyderabad - 500 008. Tel : 040 6716 1500 Investor Services

 

Invesco Asset Management (India) Private Limited, 2101-A, A Wing, 21st Floor, Marathon Futurex, N. M. Joshi Marg, Lower Parel, Mumbai 400 013 Tel : 022 6731 0000

The supporting documents are:-

Self-attested copy of PAN Card*
Proof of Know Your Client (KYC) Compliance
* Applications without PAN details will be rejected.
 
Why Do I Have To Send The Copy Of Cancelled Cheque/Bank Statement?
 
 

As a legal requirement, we require the documents for third party verification. This is a one-time requirement . All transactions performed thereafter are done from your bank account registered under the folio.

 
How Do I Pay Online For Purchase Of Units?
 
 

We have tied up with select banks to provide investors the facility of electronic fund transfer. You need to have an account and net banking facility with any one of these banks to transfer funds from your bank account into the respective scheme account.

 
Can I Use Credit / Debit Cards To Purchase Units?
 
 

No. Payment for purchase of units cannot be made through credit card however investors can invest through debit cards issued by Visa.

 
How Can I Redeem My Units?
 
 

You need to fill up the online redemption request for the scheme that you wish to exit from. On successful processing of the redemption request at applicable NAV, the redemption proceeds will be paid out; either through direct transfer to your designated bank account or a cheque / DD will be dispatched to your registered mailing address.

 
How Do I Know The Transaction Cut-Off Time And Applicable NAV?
 
 

The cut-off time and applicable NAV for every scheme is mentioned in the Scheme Information Document(s) / Offer Document(s) of the scheme. Scheme Information Document(s) / Offer Document(s) are available on our website.

In the case of online transaction, the applicable NAV will depend on the time at which the user has logged in the request. This time is the server time.

In the case of NFOs, units purchased will be allotted on the allotment date at the NFO offer price.

 
What Do I Need To Do If I Forget My Password?
 
 

You have to click on the 'Forgot Password' link on the login page of our website. Fill in and submit the details requested in the query box. After successful validation of the details, an email containing the new password will be sent to your registered email address. Your login ID will remain the same.

 
How Do I Get A Blocked Account Reactivated?
 
 

The system is built on the foundation of strong safeguards which blocks your account after 3 consecutive incorrect logins. The account gets reactivated within 24 working hours.

 
Is It Possible For Me To Change My Address, Bank Mandate And Contact Details Online?
 
 

No. As a part of the KYC Guidelines, you necessarily have to intimate the change in address to the registered intermediaries of KYC Registration Agency (KRA) and all other changes can be sent to through a letter to any of our Branch Offices or Investor Service Centres.

 
Can I Invest In SIP ?
 
 

Yes, you can now avail the Online Systematic Investment Plan(''ISIP'') facility through our website and start a SIP online hassle-free.

 
How Will I Receive My Transaction Acknowledgements?
 
 

On the completion of every successful transaction, you will receive a confirmation at your registered email ID.

 
If I Register For Online Transaction Facility, Can I Use The Physical Mode For Transacting?
 
 

Yes. An investor registered for online transaction facility can also invest through the physical mode.

 
If I Have Already Invested Earlier In The Offline Mode, What Steps Do I Need To Take To Register For Online Facility?
 
 

Email id and mobile number is mandatory to avail the online facility for association of folio invested through offline mode.

The registration process is outlined below:-

 

Log on to https://invest.invescomutualfund.com and click on 'Create Login ID'

After creating your account click on 'Associate Folio' link. You have to enter the folio number of your existing investment made through offline mode and One Time Password (OTP) which would be sent to your registered mobile number.

After inputting these details, you will be able to view your investment details and can also do further transactions under the folio.

 
Is Transacting Online Secure?
 
 

We use a variety of tools and systems to ensure the security of customer information. Our website https://invest.invescomutualfund.com/ is Verisign / SSL certified.

 
In Case I Need Any Assistance, Relating to Online Investing, What Should I Do?
 
 

You just need to call our national number 1800-209-0007 and our customer service executive will be glad to assist you.

 
How Can I Change My Address?
 
 

Investor can update / change their registered address as below:

For Non-KYC compliant folios:

Submit the CKYC registration form for individuals / KYC Form for non-individuals. Please complete the KYC Compliant procedure before submitting the form. Refer to the KYC FAQ’s in the Education and Guidance section on our website.

For KYC compliant Folios

Investor needs to submit the KYC Details Change form along with the self - attested proof of address and Copy of the PAN Card.

Please submit the forms at any SEBI registered intermediary or to any Investor Service Center of AMC or Registrar.

Click here to download the forms.

 
How Can I Change A Bank Mandate
 
 

For change of bank request, the investor would need to submit any one of the documents mentioned below for new bank account along with a request letter / non-financial transaction form

 

1. Cancelled Cheque leaf of the new bank mandate where the first unit holder name and bank account number is printed OR

2. Original self-attested copy of the bank statement/bank passbook OR

3. Bank letter mentioning the unit holder name and bank account number duly attested by the Bank Manager AND

4. Proof of Identity (if PAN is not updated in records)

 

In case there is a suspicion in the documents received, AMC reserves the right to call for the proof of old bank account from the investor.

Click here to download the non-financial transaction form

 
How Can I Update My Contact Details?
 
 

An investor can choose to update their contact details using any of the modes mentioned below:

Offline: Request letter/Non-Financial Transaction form at the nearest Investor Service Centre of AMC or Registrar.
Email: An email from the registered email ID to mfservices@invesco.com mentioning the Folio number and new contact details.
SMS: Investor can change/update the email ID, by sending an SMS INVEST <Space>Email ID to 56677 from the registered mobile number.
 
What Is The Procedure To Claim Units / Proceeds Upon Death Of A Unitholder / Transmission Procedure?
 
 

Click here to read the procedure.

 
Dematerialization of units?
 
 

Our schemes offer options to subscribe units in electronic (demat) mode. Accordingly, the units of the Scheme will be available in dematerialized (electronic) form. The applicant intending to hold Units in dematerialized form will be required to have a beneficiary account with a Depository Participant (DP) of NSDL/CDSL and will be required to mention in the application form - DP Name, DP ID and Beneficiary Account Number with the DP at the time of subscribing the Units of the Scheme. In case Unit holders do not provide their demat account details or the demat details provided in the application form are incomplete / incorrect or do not match with the details with the Depository Records, the Units will be allotted in Non-demat mode provided the application is otherwise complete in all respect.

 
How do I get Account statement for transaction done in Demat Mode?
 
 

Unit holder will receive holding/transaction statements directly from their depository participant at such a frequency as may be defined in the Depositories Act, 1996 or regulations made there under or on specific request. For further inquiries related to your Demat transactions, please contact your depository participant directly.

 
What will happen if there is a discrepancy in the details provided to the AMC and that and that provided to my demat service providers?
 
 

If the key details mentioned in the application are not matching with the Depository data, then Units will be issued in Physical mode and Statement of Account will be issued to the Unit holder.

 
I hold a Demat Account. Can I submit a request for change in my personal details directly to the Mutual Fund?
 
 

In case of changes to be done in any of below given details, you need to contact your Demat Service provider for the same.

  • Investor Name
  • Email ID
  • Mobile Number
  • Residential Number
  • Investor Tax status / Category
  • Mode of Holding
  • First Holder PAN Number
  • First Joint Holder, Second Joint Holder PAN
  • Investor Address
  • Date of birth
  • Default Bank details
  • Nominee details
 

For more detailed information, please check the section on Dematerialization of Units in the SID.

 
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