Can NRI start STP on existing mutual funds?

POSTED BY Vimalraj Nagendran ON November 22, 2013 11:19 pm COMMENTS (6)

Friends,

I know as an NRI a person cannot buy new purchases or start SIP. But is it possible to do STP instead, since it doesn’t involve a NRO/NRE bank account?

Thanks

Vimal

6 replies on this article “Can NRI start STP on existing mutual funds?”

  1. Vimalraj Nagendran says:

    Thanks Ashal for your quick responses. I guess redeem is the only transaction available then 🙂

  2. ashalanshu says:

    Dear Vimal, when you are doing STP, there may be Tax on your redemption from one fund, so you like it or not but some AMCs may not offer even STP to you due to this Taxation thing. 🙂

    Thanks

    Ashal

  3. Vimalraj Nagendran says:

    Dear Ashal,

    Thanks for your quick response. That’s why I was confused with the STP as that doesn’t involve a bank transaction. Any thoughts?

    And sorry as I didn’t mention about the US NRI earlier 🙂

    Thanks
    Vimal

  4. ashalanshu says:

    Dear Vimal, Now I got the background of your query. Due to US and some other countries’ Tax laws, Indian AMCs restricts investments from these locations. So this is not due to your basic NRI statuds but due to your actual residence – country specific.

    Thanks

    Ashal

  5. Vimalraj Nagendran says:

    Dear Ashal,

    I have been told by many NRI consultants that once I convert my savings account into NRO I wont (or I’m not supposed to) be able to do fresh Buy on mutual funds. I’m an avid investor in PPFAS fund even they have mentioned that NRI based in US/Canada are not eligible for investments. So I’m totally confused and seeking advice.

    Thanks
    Vimal

  6. ashalanshu says:

    Dear Vimal, what is the problem to you? Being NRI, there is no restriction in investing fresh money? Be it SIP or STP or lump sum?

    Thanks

    Ashal

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today