Mutual Funds for NRIs in 2025 – How to Start Investing

Introduction

Mutual Funds for NRIs in 2025 have become one of the most efficient and accessible ways for Non-Resident Indians to invest in India’s growth story. With improved digital onboarding, simplified compliance, and greater transparency, investing in Indian mutual funds has never been easier for NRIs. Whether you’re planning for retirement, building wealth, or sending money home to grow, this guide will help you understand how to start investing in mutual funds as an NRI in 2025 — step-by-step, with clarity on regulations, taxation, and fund options.

Who Can Invest?

Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), and Overseas Citizens of India (OCIs) are eligible to invest in Indian mutual funds. However, investments are governed by FEMA guidelines, and mutual fund houses may have varying restrictions based on your country of residence (e.g., USA, Canada).

Benefits of Mutual Funds for NRIs

• • Diversification across equity, debt, hybrid, and international markets

• • Professional management by SEBI-registered fund managers

• • Low entry barrier: Start with as low as ₹500 per SIP

• • Rupee-denominated returns, ideal for future India-based goals

• • Easy repatriation of capital and returns (subject to RBI rules)

How NRIs Can Start Investing in Mutual Funds in 2025

1. Open NRI Bank Account

Start with an NRE or NRO bank account.

• • NRE Account: Repatriable; ideal for income earned abroad

• • NRO Account: For income earned in India; repatriable up to $1 million/year

2. Complete KYC (Know Your Customer)

KYC is mandatory under SEBI regulations. In 2025, you can complete e-KYC online via:

• • PAN card

• • Passport

• • OCI/PIO card

• • Overseas address proof

• • Video KYC (offered by most fund houses)

3. Choose Mode of Investment

You can invest via:

• • Direct route: Through AMC websites or platforms

• • Through a Mutual Fund Distributor or RIA (like WealthForest.in)

• • Online platforms: Zerodha, Kuvera, Groww (some restrict NRI access)

4. Decide Repatriation Mode

• • Invest through NRE Account = Fully repatriable

• • Invest through NRO Account = Limited repatriation

5. Select Fund Type Based on Your Goal

• • Equity Funds: For long-term growth

• • Debt Funds: For stable income

• • Hybrid Funds: Balanced risk and return

• • ELSS Funds: For tax-saving under Section 80C

Taxation Rules for NRIs in Mutual Funds (2025)

Note: TDS is deducted at source for NRIs. Refunds (if any) can be claimed when filing returns in India.

Best Mutual Funds for NRIs in 2025

Here are some top-performing Mutual Funds for NRIs in 2025:

• • Parag Parikh Flexi Cap Fund (Equity + global exposure)

• • Mirae Asset Emerging Bluechip Fund (Mid-cap equity)

• • ICICI Prudential Balanced Advantage Fund (Hybrid)

• • Nippon India Liquid Fund (Short-term, low risk)

• • Axis Long Term Equity Fund (Tax-saving ELSS)

Points to Keep in Mind in Mutual Funds For NRI in 2025

• • FATCA compliance is essential if you reside in the US or Canada

• • Repatriation limits apply on NRO account-based investments

• • Some AMCs don’t allow NRIs from the USA/Canada — verify before investing

• • Use RIA-registered advisory platforms for unbiased fund selection

• • Review your fund’s performance annually

FAQs: Mutual Funds for NRIs in 2025

1. Can NRIs from the USA or Canada invest in Indian mutual funds?

Yes, but only through select AMCs like ICICI Prudential, UTI, or SBI Mutual Fund, which are FATCA compliant.

2. Do NRIs need a PAN to invest in mutual funds?

Yes. PAN is mandatory for investing in any mutual fund in India.

3. Can NRIs redeem mutual funds online?

Yes, redemptions can be done through AMC portals or platforms with NRE/NRO accounts.

4. Is TDS applicable to NRIs in mutual fund returns?

Yes, TDS is deducted on both capital gains and dividends before payout to NRIs.

5. How can NRIs avoid double taxation?

India has Double Taxation Avoidance Agreements (DTAA) with over 90 countries. File taxes in both countries and claim relief under DTAA provisions.

People Also Ask (PAA)

• • Is it safe for NRIs to invest in mutual funds in India?
    → Yes, SEBI regulates all mutual fund investments, making them safe for NRIs.

• • Can NRIs invest in SIPs?
    → Absolutely. NRIs can set up SIPs via their NRE/NRO accounts.

• • Do NRIs need to file ITR in India if investing in mutual funds?
    → Yes, especially if you have taxable gains or claim TDS refunds.

Conclusion

With India’s growing economic strength, mutual funds for NRIs in 2025 offer a golden opportunity to build wealth in rupees while staying abroad. Whether you’re planning for retirement, children’s education, or simply want to diversify, now is the perfect time to start your investment journey.

Ready to Start Your NRI Mutual Fund Journey?
At WealthForest.in, our expert advisors help NRIs like you invest confidently in India. From KYC to fund selection to portfolio monitoring — we handle it all.

Start your investment with us today and grow your wealth back home.