(i). NRI status:
You should be classified as an NRI as per the prevailing Foreign Exchange Management Act (FEMA) guidelines.

(ii). NRI bank account:
As an NRI, you cannot invest in mutual funds in a foreign currency. Accordingly, you should have an active Non-Residential External (NRE) or Non-Residential Ordinary (NRO) bank account in India.

(iii). Know Your Customer (KYC) compliance:
Once your residential status changes to an NRI, you will need to do a fresh KYC with relevant documentation. If you are a new investor, you will need to submit KYC documentation. For any KYC related query, you can send us mail at support@savcapital.in

(iv). Mutual fund investment options for NRIs
Several AMCs offer mutual funds investment options for NRIs in India, including equity, debt, and hybrid funds. You can invest in a mutual fund online after completing KYC or through an appointed PoA in India. Please be noted that NRIs from the United States and Canada may face restrictions on investing in Indian mutual funds with a few AMCs.

(v). Continuing with your existing Systematic Investment Plan (SIP) as NRIs
As an NRI, you can continue with your existing mutual fund SIPs that you had initiated when you were a resident Indian. Once you become an NRI, you will have to mandatorily update your bank account (NRE/NRO) details with your AMC. In case you decide to redeem your mutual fund investments (including SIPs) made while you were a resident, the redemption amount post Tax Deducted at Source (TDS) will be credited to your bank account (NRE/NRO).

(vi). Repatriation of funds
You can invest in mutual funds on a repatriable or non-repatriable basis. If you invest through your NRE account, all the investment proceeds are fully repatriable. However, if you wish to invest from your NRO account, then the proceeds are repatriable only up to USD 1 million cumulatively for all NRO accounts held in India per financial year (April–March).

(vii). Taxation of NRI investments in mutual funds
Any income earned from mutual fund investments by NRIs is subject to taxation in India. The tax rates for NRIs investing in mutual funds are the same as those for resident Indians.

It is important to know that AMCs will deduct TDS on redemption/dividend payout.