Mutual fund investment query for NRI

POSTED BY visasubu ON February 10, 2012 1:58 am ONE COMMENT


I recently moved out of India and am NRI now. I started investing 3000 RS on following SIPs before moving out of India

HDFC Top 200
Fidelity Equity
HDFC Prudence
Prudential ICICI Discovery Fund- Growth
Birla Sunlife Equity
Reliance Vision

I would like to know whether I need to change my status as NRI .
If so, please let me know the procedure for it.
Also , Is there any capital gain charges or any other charges. when i sell it as NRI.


One reply on this article “Mutual fund investment query for NRI”

  1. BanyanFA says:

    Hi Visa
    This is one of the common dilemma which most NRI’s face after leaving India. There are two possible options you have:
    A. Ideal & Theoretical Approach;
    B.Practical Approach.

    I would rather comment on the practical approach. You should stop do the following:
    1. Stop all your SIPs at the earliest possible. You need to sell them. Just stop them so that any further investments into your SIPs don’t go into your mutual funds as a resident status;
    2. Open a NRE / NRO bank account.
    3. Open fresh SIPs in different folio account via your NRE / NRO account in Non Resident Status.

    If you want to sell your Mutual funds, the following charges shall be levied:
    1. All your investments done within 1 year shall attract 1% exit load.
    2. Any capital gain for investments done within 1 year shall be liable for 15% Short Term Capital Gain Tax;
    3. Any capital gain on investments beyond 1 year period shall be tax free.


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