Can NRIs Invest
in Mutual Funds in India?
Yes, NRIs can invest in Indian mutual funds without any restrictions. Mutual fund investments by NRIs are completely allowed under FEMA regulations. There is no need to be present in India to make mutual fund investments; neither is there any requirement of having an address within India.
To get started, you'll need in traditional method:
After completing these steps, the KYC process, which used to require physical verification at an Indian branch, can now be completed digitally on regulated platforms. This single change has made NRI mutual fund investment in India genuinely accessible for the first time.
However, dealing with regulations might seem difficult sometimes. This is where working with experts like Icarus Wealth can make things much smoother in every step.
All we need is your
NZ Driving Licence or Passport,
and your NZ bank account number.
bank account
documents
steps.
Why Mutual Funds
Are Ideal for NRI Investors
Mutual Funds have been designed with the intent to facilitate investment while helping you grow in the process.
Professional management
You don't need to track individual companies, monitor quarterly earnings, or follow RBI announcements. A qualified fund manager does all of that on your behalf. Your job is to invest regularly and stay the course.
Diversification
Even a single mutual fund holds positions in 30–80 different securities. That spread of risk is something you'd struggle to replicate on your own without significant capital and research time.
Flexibility
Start small, build gradually, pause whenever your expenses are high, and withdraw when you actually require the money. There are no minimum tenures to follow, no charges for premature withdrawals in most cases, and no forcing of a commitment to an unsuitable tenure period.
Regulated and transparent
Every mutual fund in India operates under SEBI oversight. Fund portfolios are disclosed monthly. NAV is published daily. You can always track your investment and its performance.
Exposure to India's growth story
The growth rate of India's GDP, increase in its middle class population, and improved corporate profitability have helped the Indian stock market deliver outstanding returns over the last two decades. Investing in mutual funds is the easiest way of participating in this success story from abroad.
NRI SIP Plans / Recurring Orders in India
For many NRIs, SIP plans in India are one of the easiest ways to begin your investment journey.
Whereas in case of lump-sum investments, you make a huge investment in one go, here you make systematic investments. It allows you to reduce your risk by averaging out the high and low price movements and ensures consistent investing.
Here's a simple illustration of what monthly SIP investing can produce over time, based on a 13% annualised return (historical average of large cap equity):
Monthly SIP
| Monthly SIP | 5 Years | 10 Years | 15 Years |
|---|---|---|---|
|
₹5,000
|
₹4.1 lakh | ₹12 lakh | ₹27.5 lakh |
|
₹10,000
|
₹8.2 lakh | ₹24 lakh | ₹55 lakh |
|
₹20,000
|
₹16.4 lakh | ₹48 lakh | ₹1.1 crore |
Fortnightly SIP
| Fortnightly SIP | 5 Years | 10 Years | 15 Years |
|---|---|---|---|
|
₹5,000
|
₹8.4 lakh | ₹24.4 lakh | ₹56.2 lakh |
|
₹10,000
|
₹16.8 lakh | ₹48.8 lakh | ₹1.12 crore |
|
₹20,000
|
₹33.6 lakh | ₹97.6 lakh | ₹2.24 crore |
Weekly SIP
| Weekly SIP | 5 Years | 10 Years | 15 Years |
|---|---|---|---|
|
₹5,000
|
₹18.3 lakh | ₹53.2 lakh | ₹1.22 crore |
|
₹10,000
|
₹36.6 lakh | ₹1.06 crore | ₹2.44 crore |
|
₹20,000
|
₹73.2 lakh | ₹2.13 crore | ₹4.88 crore |
Indicative only.
No guarantee of returns.
Based on 13% p.a. historical average.
Past performance is not indicative of future results.
These numbers aren't magic. They're what consistency and time produce when you stay invested through market cycles rather than reacting to short-term noise.
Choosing the Right Mutual Funds for NRIs
To choose the right mutual fund investments for NRIs in India is dependent on your objectives and risk tolerance.
| Fund Type | Risk | Ideal For | Suggested Horizon |
|---|---|---|---|
| Large Cap Equity | Moderate | Steady long-term growth | 5+ years |
| Mid Cap Equity | High | Higher growth potential | 7+ years |
| Small Cap Equity | Very High | Aggressive long-term growth | 7–10+ years |
| Flexi Cap / Multi Cap | Moderate–High | Diversified equity exposure | 5+ years |
| ELSS (Tax Saving) | Moderate–High | Tax saving + wealth building | 3+ years (locked) |
| Index Funds | Moderate | Low-cost, passive market returns | 5+ years |
| Hybrid Funds | Moderate | Balanced growth + stability | 3–5 years |
| Short Duration Debt | Low | Capital preservation, 6–24 months | 6 months – 2 years |
| Liquid Funds | Very Low | Short-term parking, easy access | Up to 3 months |
Don't chase last year's top-performing fund.
Look for a consistent growth cycle.
At Icarus Wealth, we help NRIs choose the right mutual funds aligned with their goals and risk profile.
How to Choose the Right Fund on the Icarus Wealth App
The Icarus Wealth platform is built specifically for NRIs and removes the guesswork entirely. Here's how it works:
Set your goal
Tell the app what you're saving for: retirement, children's education, property, or general wealth building. The platform maps your goal to suitable fund categories automatically.
Enter your time horizon
Short, medium, or long term? The app filters out unsuitable fund types and recommends only those aligned with your timeline.
Assess your risk appetite
A quick questionnaire determines whether you're a conservative, balanced, or growth-oriented investor. No jargon, no spreadsheets.
Compare curated recommendations
Icarus surfaces only NRI-compliant, SEBI-regulated funds matching your profile — with performance history, fund manager track records, and expense ratios shown side by side.
Invest in one tap
Set up a SIP or lump-sum directly in the app. No switching platforms, no paperwork.
What happens when you invest
without Icarus Wealth?
NRI Compliance Risk
Generic platforms don't filter for NRI compliance and you may inadvertently invest in funds that don't accept NRI money, causing delays or rejections.
No Goal-Based Filtering
Without goal based filtering, it's easy to chase last year's top performing fund, a common mistake that leads to buying high and selling low.
Hidden Costs & Unclear Taxes
Currency conversion costs and tax implications are often hidden or unclear on general platforms.
Lack of NRI-Specific Support
Customer support unfamiliar with NRI-specific regulations (FEMA, TDS, DTAA) can leave you navigating complex compliance alone.
Documents Required:
Traditional Route vs. Icarus Wealth
|
Traditional Route
|
Icarus Wealth (simplified)
|
|---|---|
|
PAN Card
|
NZ Driving Licence or Passport
|
|
NRE / NRO Bank Account
|
NZ Bank Account Number
|
|
Notarised Passport Copy
|
Not needed
|
|
Indian Address Proof
|
Not needed
|
|
Overseas Address Proof
|
Not needed
|
|
Physical KYC (in-branch)
|
Not needed
|
|
NRE/NRO Bank Statement
|
Not needed
|
|
FATCA / CRS Declaration
|
Not needed
|
|
Power of Attorney (sometimes)
|
Not needed
|
Process to invest in mutual Funds in India
for NRIs with Icarus Wealth
Open Your Account
Onboarding and documentation are simple and clean.
Transfer Funds via Transparent Foreign Exchange
See the funds transfer process from NZ to India.
Invest in Indian Markets
Get access to Indian securities in a structured manner.
Track and Monitor
Monitor your investments from one central dashboard.
Best platform to invest in
mutual funds for NRI?
The selection of the right platform to invest in mutual funds in NRI can play an essential role in your experience.
Icarus Wealth helps NRIs invest in India easily.
Simple investment process without any complications
We make investing in Indian mutual funds as easy as it should be.
Expertise in NRI mutual fund investment in India
Our experience and specialized knowledge help you make informed investment decisions.
Assistance with documentation and compliance
We handle your documentation and ensure full compliance with Indian regulations.
Transparency and Reliability
Clear processes, honest communication and your interests always come first.
Invest from one platform and receive everything you require.
From investments to reports – all in one secure and seamless platform.
Taxation for NRI Mutual Fund Investments
There is a lot of importance of taxes when it comes to mutual funds investment for NRIs in India and cannot be neglected. Here's how it currently works:
| Fund Type | Holding Period | Tax in India |
|---|---|---|
|
Equity Funds
|
Under 1 year
|
20% STCG
(Short Term Capital Gains) |
|
Equity Funds
|
Over 1 year
|
12.5% LTCG
above ₹1.25 lakh exemption |
|
Debt Funds
|
Any duration
|
Taxed at income slab rate
|
For NRIs specifically:
- TDS (Tax Deducted at Source) is applied before redemption proceeds reach you
- India and New Zealand have a Double Tax Avoidance Agreement (DTAA), which may allow you to offset Indian tax against your NZ tax liability
- ELSS funds have a 3-year lock-in but benefit from LTCG treatment after that period
Start Investing Today
Mutual funds investment in India for NRI doesn't have to be complex.
By choosing the right path, with the help of Icarus Wealth, you can avail yourself of all the possibilities of India without having to worry about any dangers.
Be consistent irrespective of whether you invest in NRI SIPs in India or through other mediums.
Smart decisions today
for a stronger tomorrow.
Frequently Asked Questions
Disclaimer:
Example funds are for illustration only. No recommendation is being made. Past performance is not indicative of future results. Investments carry risk. Investments in overseas markets, including India, involve additional risks such as currency fluctuations, regulatory differences, and tax implications.