Mutual funds are one of the sought after options for investments for most NRIs and yes they can invest in it but to know about the specifics, one must refer to the scheme information document (SID) of the mutual fund scheme he/she is interested in
India is one of the fastest growing countries in the world. While you may reside abroad, as an Indian by birth, you naturally have roots firmly planted in India. You might also want to benefit from your country’s growth. The most convenient way to cash in on India’s growth is through its capital markets.
The valuations of securities in Indian capital markets will reflect the country’s growth. In other words, market prices of securities will increase based on the rate of growth. By investing in these securities, you will see your investments concurrently grow.
While you can invest in nearly every kind of security available in the country, the problem is selecting and monitoring the securities in which you invest; this requires time and skills. A better option is to invest in India through mutual funds. All your investment needs – asset allocation, diversification, investing, monitoring investments – are taken care of by the mutual fund.
Before we discuss the investment options, let’s take a step back to check whether you are a non-resident Indian (NRI); an NRI is an Indian citizen or a person of Indian origin who resides abroad. NRIs must follow specific rules when investing in India.