What are the best Mutual funds for US NRI?
SBNRI Team
answered on 30/03/2020
Best Mutual funds for US NRIs: Updated List 2020
- DHFL Pramerica Mutual Fund
- Birla Sun Life Mutual Fund
- ICICI Prudential Mutual Fund
- SBI Mutual Fund
- UTI Mutual Fund
- L&T Mutual Fund
- PPFAS Mutual Fund (Parag Parikh Financial Advisory Services)
- Sundaram Mutual Fund
Different types of Mutual Funds are taxed differently:
While there are multiple Mutual Fund Houses that accept investments from US NRIs, The taxation on mutual funds vary with the types of funds. The taxation is charged as per the following table:
*(Equity Funds: An equity fund is a mutual fund that invests principally in stocks)
*(Debt Funds: A debt fund is a mutual fund that invests in fixed-interest generating securities such as corporate bonds, government securities)
Nature of Profits / Income | Equity Funds* | Debt Funds* |
Minimum Holding period for Long term capital gains | 1 year | 3 years |
| Short term capital gains taxation | 15% + 4% cess* = 15.60% | As per the tax rate of the investor (30% + 4% cess = 31.20% for investors in the highest tax slab) |
Long term capital gains taxation | 10% + 4% cess = 10.40% (if the long term gain exceeds Rs 1 Lakh) (long term gains up to Rs 1 Lakh is tax-free) | 20% with indexation* |
*(Cess: A cess is a tax on tax that you pay to the government for purposes set by the government. The cess is charged till the objective set by the government is fulfilled. Eg: Krishi Kalyan Cess, Swachh Bharat Cess etc.)
*(Indexation: Indexation refers to the technique of adjusting income payments using a price index to maintain the purchasing power of the public after inflation)
To get Mutual Fund Advisory from experts at SBNRI, contact us using the button below.
Ask SBNRI Investment Expert Now
Related Questions
SBNRI Team
answered on 30/03/2020
Yes. An NRI can invest in Mutual Funds In India using their NRE/NRO accounts. In order to invest in Mutual Funds, NRIs must be registered with a Registered Transfer Agents (RTAs). These RTAs maintain a detailed record of Mutual Fund Investors. There are a number of wealth management services and digital platforms that can […]
SBNRI Team
answered on 30/03/2020
Mutual Fund and Taxation is a very complex subject. To make it clear, let us first understand the mediums of investment in mutual funds. NRIs can invest into mutual funds from their NRE and NRO accounts. Now a brief description of these accounts can be understood as: Non-Resident External (NRE): The NRE account can […]
SBNRI Team
answered on 30/03/2020
KYC refers to Know your Customer. It is a simple process of verifying the details provided by the customer for purposes such as investments, registration etc. Checking of your KYC Status can be done at any of the registered KRA (KYCs Registration Agencies) such as: CAMS Investor Services CDSL Ventures (cvlkra.com) There is no […]
SBNRI Team
answered on 30/03/2020
Taxation on Mutual Funds for NRI: Different types of Mutual Funds are taxed differently *(Equity Funds: An equity fund is a mutual fund that invests principally in stocks) *(Debt Funds: A debt fund is a mutual fund that invests in fixed-interest generating securities such as corporate bonds, government securities) Nature of Profits […]
