Can OCI invest in Indian Mutual Funds?

  • Asked By
  • Updated On:
  • Replies:

Short Answer

Yes, Overseas Citizens of India (OCI) can invest in Indian mutual funds. Checkout ways how an OCI can start investing in the Indian mutual fund industry.

Detailed Answer

Who is an OCI?

An OCI is an Overseas Citizen of India. He/she must have been an Indian citizen on or after 26th January 1950 or if his or her grandparents were Indian citizens on or after 26tth January 1950. They must abide by the Government of India Act 1935.

What is a mutual fund?

Mutual funds are generally managed by professional fund managers. It has a portfolio within itself. It may consist of shares, bonds, fixed interest, or any financial instrument based on its objective.

An investor who does not have much time to analyse, invest and re-balance their portfolios, can buy one mutual fund of their choice, instead of constructing their own portfolio. For this service, they need to pay a percentage of the investment balance of management fees.

Can OCI invest in Indian Mutual Funds?

Overseas citizens of India are allowed to invest in mutual funds. In addition to mutual funds, they can also invest in start-ups, the National Pension Scheme, government securities, equity and fixed deposits. Investment can be made via a non-resident external or non-resident ordinary account via repatriation or a non-repatriation basis based on your choice. For repatriation you need a NRE or a FCNR bank account.

Benefits of investing in Mutual funds

  • It is a liquid investment option, unlike a term deposit.
  • Offers diversification within one fund
  • Professionally managed
  • Low cost
  • You need not spend time analyzing the markets. Suitable even for a novice in the investment markets.
  • Automatic re-balance

OCI Investing in Mutual Funds

India is one of the fast-growing economies and the government is making Indian markets conducive for investors to make it a perfect investment destination. The Non-residents of India, People of Indian origin and overseas citizens of India have always opted for Indian markets.

Of the available investment options, mutual funds are one of the best options as they are managed by professionals, offer the prospect of earning better returns and are cheap.

Tagged With: overseas citizen of indiamutual funds investingoci investmentmutual fundsindian mutual fundsoci
Categories: Mutual Funds
Ask Your Query for FREE, Get quick answers from our FINTRAKK community!
Discussion (0)
Related FAQs
Can NRIs invest in mutual funds in India?

Yes, any NRI can invest in mutual funds in India, if they follow some certain conditions under Foreign Exchange Management Act or FEMA Act 1999.

How can NRIs from the United States invest in Mutual Funds in India?

NRIs living in the United States can invest in Indian Mutual Funds, but there are some hassles that have to be overcome. You will require an NRE, NRO, or FCRN account in order to convert the foreign currency into Indian rupees, post which you can complete the KYC and begin investing in Indian Mutual Funds.

Can foreign nationals invest in Indian Stock Market?

Yes, foreign nationals are allowed to invest in the Indian stock market. Individuals can invest under the category of Qualified Foreign Investors, and Institutional investors can do so under the category of Foreign Institutional Investor (FII).

Can OCI invest in Indian Stock Market?

Yes, an Overseas Citizen of India (OCI) can invest in Indian stock market. Let's know ways how an OCI can start investing in Indian stocks from another country.

Can foreign nationals invest in Indian Mutual Funds?

Yes, foreign nationals can invest in Indian mutual funds. They can either invest by direct route, which requires them to open a demat account, or by indirect route through Unit Confirmation Receipts (UCR).

What is the full form and meaning of Karvy, KYC, KRA and FATCA status? Explain the whole process.

KRA is an abbreviated short form of KYC Registration Agency whose primary job is to collect and maintain KYC records of individuals on behalf of SEBI registered financial market participants mainly Mutual Funds companies, NBFC, Brokers etc.

How to get exposure in U.S stocks?

Investing in abroad markets has become quite easy these days. One can get direct and indirect exposure into the U.S. market through various methods. Investing in foreign markets like the U.S provides many benefits like Diversification into the top companies of the world, Benefit of Currency Depreciation, etc. Apart from directly purchasing the stocks listed on the U.S. stock exchanges, there are some different methods as well. Know the best methods of getting exposure to the U.S. stock markets.

Can I trade or invest Rs 100 in the share market of India?

You can definitely trade or invest Rs 100 in Indian stock markets. There are no monetary requirements to enter the stock market hence you can buy any share that is trading under Rs 100. Apart from direct stock investing/ trading, there are some indirect ways to own shares over Rs 100. This can be done through Mutual Funds.

Who is the Mutual Fund Regulator in India?

Mutual funds are regulated by SEBI ( Securities and Exchange Board of India). SEBI regulates mutual funds as 1996 Mutual fund regulation. SEBI is also the regulator for wider capital and securities market in India. SEBI was formed in 1988 as a statutory body and drives it powers from SEBI act 1992.

Can you invest in US stocks with the HDFC Sky app?

Yes, you can invest in US stocks and securities with the HDFC Sky app. Moreover, there are many more investible options provided by them.