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Ch.9 · KYC and Folio Management · medium

Can an NRI invest in Indian mutual funds on a non-repatriable basis?

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EXPLANATION

NRIs can invest in Indian mutual funds through NRE accounts (repatriable — both principal and gains can be sent abroad) or NRO accounts (non-repatriable — funds originate from India earnings and have repatriation limits).

A.No — NRI investments in mutual funds must always be repatriable

B.Non-repatriable investment is only allowed in debt mutual funds

C.Only NRIs from FATF-compliant countries can invest on non-repatriable basis

D.Yes — NRIs can invest on both repatriable (NRE) and non-repatriable (NRO) basis [✓ Correct]

EXPLANATION

NRIs can invest in Indian mutual funds through NRE accounts (repatriable — both principal and gains can be sent abroad) or NRO accounts (non-repatriable — funds originate from India earnings and have repatriation limits).

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