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POSTED BY ON September 25, 2010 1:01 am COMMENTS (4)
Hi Manish,
I have been following you for more than a year and I chat with you many times when I was in India. I became very enthusiastic for personal finance. Started with term insurance last year. But couldn’t start investing in MFs. Now I am in US. Not sure how I can go with it. If I transfer money to my Indian bank account and then invest on sip, it would be loss due to conversion and they charges for money transfer. But I want to start as it is already late. Please suggest me. I would like to start with HDFC Top200 and HDFC Prudance. Also let me know whether sip is suitable for me? If I transfer money to India, I will transfer atleast Rs.50,000 and then if it is sip for Rs.10,000, it will go for next 5 months but I feel it won’t be a good idea to keep remaining just waiting for next month sip. I am in confusion. Please help
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I use FundsIndia and it works well. They are tied up with most (but not all) MF companies, charge no commissions for MF purchases and SIPs and their service is good from my experience so far.
You can open an account with them directly as an NRI. You will need to have a PAN number.
When you invest in Indian MFs from US, you have to be aware of some IRS tax filing requirements. Dividends given by equity mutual funds in India are not taxable in India but they are taxable when you file tax returns as a resident in the US. Search on “indian mutual funds PFIC” in google and the first link is an excellent resource for you to find out the details.
Your other option is to gift money to parents and have them invest it for you.
If there is a step involved of attaching documents, signing them & sending them by courier, why not to directly send to mutual fund AMC.
Just sign your first application form; give the cheque from your NRE a/c & after you get your statement of account, go for i-pin. After getting i-pin, you can invest using NetBanking of your bank account. You’ll have complete authority on your account.
I don’t know much about Fundsindia & like these companies, but just check them, are you giving them “power of attorney” by signing there document?
Hope it will help you.
kalyan,
As a person planning to invest in india MF from US, i would like to share my experience.
1. I chose Fundsinidia.com as online portal for the mutual fund investment. As this will help to track my MF investment from US itself. I opened an account in fundsinida in name of my father. The form can be filled online. The only thing my father need to do is to take print out, attach verification documents, his signature and send them to their address. within 2 weeks account was opened. I felt their process to be less cumbersome and their customer service was also good. above said you can also visit this page to see other options available – http://jagoinvestor.dev.diginnovators.site/2010/04/what-are-different-ways-of-buying-mutual-funds.html
2. Next thing i have done is opening account in ICICI (i preferred bank with net banking to track the account). similarly u can go for HDFC also.
Then you can transfer money to your bank and set up SIP in fundsindia for your shortlisted mutual funds.
am starting my investment from next month.
Hope this will help.
Happy investing 🙂
Kalyan
Doubts and choices in life are the killer for everything , these keep our decision dalaying and we do not take action and hence loose 🙂 . You should rather start things right away without thinking much about conversion loss etc , because what else you can do ?
Right now , markets are not best suited for long term investments , so I would suggest you accumulate your money in debt funds and once markets crash , you can then deply all the money for very long term . You can invest in MF through a demat account incase you have it , or get it ready in your next visit .
Or for now , better invest in some one else name who is in India .
One point , This is a forum where any one can answer the question , so better do not mention “Hi Manish” , else others thing that only I should reply to this 🙂
Manish