Dozens of mutual fund houses in India offer different schemes that investors can choose from depending on their investment goals. The definition of the best mutual fund varies from investor to investor. You can invest in a fund as per your objective, horizon, and risk appetite. Letโs look at some of the best mutual funds for NRI in India for 2024.
The following tables contain some of the best-performing mutual fund schemes for NRIs across categories – equity, debt, sectoral, ESG, liquid funds, and some of the best SIPs to invest for NRIs. All resident and Non-Resident Indian (NRI) investors can invest in these mutual funds.
What is an Equity Mutual Fund?
Equity mutual funds are a type of mutual fund that predominantly invests in the shares/stocks of the listed companies. Equity mutual funds are also known as growth funds and can be active or passive. Active equity mutual funds are those where the fund manager pools the investment funds of the investors into various stocks based on market conditions, performance, research, and more while passive equity funds are those where the fund manager builds a portfolio to mirror the market index, i.e. Nifty 50 or BSE Sensex.
Equity mutual funds can also be further classified into various types as per the market capitalization, i.e. Large-Cap, Mid-Cap, Small-Cap, or at times Flexi-Cap. Not to forget the various sectoral funds or thematic funds invested into particular fields like ESG funds, tech funds, and more.
Also read: Top 5 Tips for NRIs to Pick a Winning Mutual Fund
What are the Top 10 Best Equity Funds for NRI 2024?
In this section, we look at some of the best equity funds for NRIs 2024. We have created the list of Top 10 Best Equity NRI Mutual funds regarding the overall fund performance and have also taken note of the expense ratio and other areas. These top equity funds for NRIs are great options to start your investment.
Top 10 Performing Equity Funds for NRIs in 2024
| Fund Name | Fund Size (In Crores) | Expense Ratio | 1 YR | 3 YR |
| Quant Small Cap Fund-Growth for NRI | 11,207 Cr | 1.7% | 48.90% | 44.12% |
| Quant Infrastructure Fund Growth for NRI | 1130 Cr | 2.1% | 34.14% | 39.56% |
| Nippon India Small Cap Fund-Growth for NRI | 41,019 Cr | 1.5% | 50.56% | 38.51% |
| Axis Small Cap Fund Growth for NRI | 17,916 Cr | 1.6% | 35.45% | 28.76% |
| ICICI Prudential Smallcap Fund Growth for NRI | 6,989 Cr | 1.8% | 26.94% | 37.61% |
| Quant Tax Plan Growth for NRI | 6608 Cr | 1.8% | 39.60% | 30.99% |
| Kotak Small Cap Growth for NRI | 13,377 Cr | 1.7% | 36.12% | 28.44% |
| PGIM India Midcap Opportunities Fund Growth for NRI | 9,800 Cr | 1.7% | 21.87% | 22.51% |
| Quant Mid Cap Fund Growth for NRI | 3,781 Cr | 1.9% | 36.04% | 31.69% |
| Nippon India Multi Cap Fund โ Growth for NRI | 22,695 Cr | 1.7% | 41.36% | 32.67% |
What is Debt Mutual Fund?
Debt funds are a kind of mutual funds that lend money to the government and companies to generate returns. In India, debt funds principally invest in fixed-income securities, including corporate bonds, debentures, treasury bills, commercial paper, etc. Funds that earn fixed interest and involve lower risk than equity funds can be considered the best debt mutual funds. Both normal residents as well as NRIs can invest in these funds.
Also Read: How NRI invest in India: Mutual Funds
Best debt mutual funds in India 2024
Here are some of the best debt mutual funds for resident and NRI investors based on past performance, risk involved, and rating:
Top 10 Best Debt Mutual Funds in 2024 for NRIs/OCIs
*Returns as of 7-Jan-2024
What is a Mutual Fund Systematic Investment Plan (SIP)?
Mutual Fund Systematic Investment Plan (SIP) is a form of investment where the investor can choose to invest a fixed amount in the mutual fund scheme in a periodical manner, i.e. weekly, monthly, or quarterly. This is in stark contrast to the lump sum investment where the investor has to invest a large sum of money at once.
Mutual Fund SIP investment allows NRI investors to start their investing journey with a small sum of money and build wealth in the long run. This ease of entry in investment helps bring a higher number of investors into the market and hence is preferred by many residents as well as NRI investors. Furthermore, mutual fund SIPs are very simple and flexible as each month the fixed SIP amount gets debited from your bank account as per the SIP frequency and invested into the mutual fund SIP scheme that youโve chosen.
Also read: NRI Mutual Fund KYC in India: The Ultimate Guide 2024
What are the Best SIP Mutual Funds for NRI?
Weโll look to list the top 10 best mutual fund SIPs for NRIs in the below segment.
Top 10 Best SIP Mutual Funds for NRIs to Invest in 2024
| Fund Name | AUM (In Crores) | Expense Ratio | 1 YR | 3 YR |
| Quant Small Cap Fund Growth for NRI | 11207 Cr | 1.8% | 47.06% | 44.21% |
| HDFC Small Cap Fund Growth for NRI | 25409 Cr | 1.6% | 45.32% | 35.63% |
| Nippon India Small Cap Fund-Growth for NRI | 41019 Cr | 1.6% | 49.85% | 40.72% |
| HDFC Mid-Cap Opportunities Fund Growth for NRI | 52138 Cr | 1.5% | 44.89% | 31.06% |
| Tata Small Cap Fund Growth for NRI | 6346 Cr | 1.8% | 34.44% | 35.07% |
| Quant Mid Cap Fund Growth for NRI | 3781 Cr | 1.9% | 35.22% | 33.03% |
| Nippon India Growth Fund โ Growth for NRI | 21380 Cr | 1.7% | 49.26% | 31.77% |
| SBI Magnum Midcap Fund Growth for NRI | 14455 Cr | 1.8% | 34.40% | 27.75% |
| Canara Robeco Small Cap Fund Growth for NRI | 8642 Cr | 1.7% | 32.74% | 33.85% |
| Motilal Oswal Midcap Growth for NRI | 6805 Cr | 1.8% | 41.33% | 34.20% |
What is a Liquid Fund?
Liquid funds are a type of debt mutual fund that invests in short-term assets like commercial papers, government securities, certificates of deposit, treasury bills, or repos. Liquid funds as is the case with all the mutual fund investments in India are governed by SEBI rules which specify that liquid funds can only invest in debt and money market securities that have a maturity of up to 91 days.
Since the liquid funds are short-term based, the fluctuations arenโt much in the prices of the securities that they are invested in and hence provide stable returns when compared to other debt mutual funds.
What are the Best Liquid Funds for NRI?
In this section, we look at some of the best liquid funds for NRIs 2023. We have created the list regarding the overall fund performance and also taken note of the expense ratio and other areas. These top liquid funds for NRIs are great options to start your investment.
Top Performing Liquid Funds for NRIs in 2024
| Fund Name | Fund Size (In Crores) | Expense Ratio | 1 YR | 3 YR |
| ICICI Prudential Liquid Fund Growth for NRI | 42,892 Cr | 0.3% | 7.00% | 5.01% |
| SBI Liquid Fund Plan Growth for NRI | 67,038 Cr | 0.3% | 6.97% | 5.02% |
| HDFC Liquid Fund Growth for NRI | 48,967 Cr | 0.3% | 6.98% | 5.01% |
| UTI โ Liquid Cash Plan โ Plan โ Growth Option for NRI | 27,290 Cr | 0.3% | 7.05% | 5.07% |
| Axis Liquid Fund Growth for NRI | 26,828 Cr | 0.2 % | 7.07% | 5.10% |
| Aditya Birla Sun Life Liquid Plan Growth for NRI | 40,138 Cr | 0.3% | 7.07% | 5.07% |
| LIC MF Liquid Fund Growth for NRI | 10,539 Cr | 0.2% | 6.97% | 5.00% |
| Mahindra Manulife Liquid Fund Plan Growth for NRI | 862 Cr | 0.3% | 7.07% | 5.10% |
Also read: How Often Should You Review Your NRI Mutual Funds Investment?
What Are Sector Funds?
Sector funds or sectoral funds as it is also known is a type of equity mutual fund that invests in the stocks of the companies operating in a specific segment or industry. A thing to note is that sectoral mutual funds can invest in large-cap mid-cap to small-cap companies as long as they belong to the same sector. Sector funds are different from diversified funds as it does not spread the investment across various sectors but rather concentrate all the investments in one single sector.
For example, a Technology Sector mutual fund focuses on investing in technology-based companies like Wipro, Infosys, Tech Mahindra, and more while a Pharma sector mutual fund will focus on companies like Biocon. GlaxoSmithKline, Cipla and more. In a general view, this can be both an advantage and a risk basis the performance of the sector. There are cyclical performances in a few sectors in the Indian market and timing the investment in sector mutual funds accordingly can be a good investment choice.
Best Sector Mutual Funds List for NRI
There are multiple sectoral mutual funds in the market that an investor can choose from. We here have enlisted some of the best sectoral mutual funds for NRI investors to choose from. Letโs check them out:
| Funds | 1 Yr | 3 Yr |
|---|---|---|
| Aditya Birla Sun Life Digital India Fund Growth for NRI | 27.32 | 25.62 |
| SBI Technology Opportunities Fund Growth for NRI | 26.34 | 25.09 |
| Tata Digital India Fund Growth for NRI | 23.02 | 24.68 |
| Franklin India Technology Fund Growth for NRI | 34.33 | 19.14 |
| Nippon India Pharma Fund – Growth for NRI | 24.93 | 15.53 |
| DSP Healthcare Fund Growth for NRI | 23.62 | 13.97 |
As of 26-Sep-2023
What are ESG Mutual Funds?
ESG mutual funds are a type of thematic mutual fund based on sustainable and socially responsible mutual fund that meets the specific ESG criteria that we aforementioned. The ESG mutual funds focus on investing in companies that perform well in their business abiding by the ESG principles. This helps promote the social and environmental impacts whilst generating financial returns for the investors.
Top ESG Mutual Fund Schemes List to Invest in
These are some of the top ESG Mutual funds for NRI to invest in:
*Data as of 24-Sep-2023
Invest in NRI Mutual Funds with SBNRI
NRIs can now download the SBNRI App and choose to invest in different mutual schemes in India with ease. You can also get detailed mutual fund advice from experts at SBNRI. Also, visit our blog and YouTube channel for more details.
SBNRI is an authorized Mutual Fund Distributor platform & registered with the Association of Mutual Funds in India (AMFI). ARN No. 246671. NRIs willing to invest in mutual funds in India can download the SBNRI App to choose from 2,000+ mutual fund schemes or can connect with the SBNRI wealth team to better understand Mutual Fund investments.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions. SBNRI does not intend to predict future returns, please read all related documents before investing.
FAQs
Which is the best Equity fund for NRI to invest in 2024 for the highest return?
Nippon India Small Cap Fund-Growth for NRIย is the best equity fund for NRI to invest in 2024. It has given a return of 50.56% for 1 year and 38.51% for 3 years.ย
What is the taxation for equity funds for NRI?
If equity investments are sold within one year of holding by NRIS, then the returns will be treated as short-term capital gain and will be taxed at 15% plus cess. However, if the funds are sold after one year of holding, it accounts as long long-term capital gain and the returns up to Rs 1 lakh will be tax-free. Any returns above Rs 1 lakh will be treated to a taxation of 10% plus cess without any indexation benefit.ย
Are equity mutual funds safer for NRIs?
Equity mutual funds have a high volatility and can be a risky investment for investors. However, overseeing the returns generated by equity mutual funds for the past 15 years, these funds can be a great investment vehicle and offer great wealth-generation opportunities for NRIs.
Is equity funds safer than FD?
Fixed deposits have a risk-free fixed income and are safer than equity mutual funds. However, as per the returns and growth opportunity, equity mutual funds look to be a better investment option for investors, residents, and NRIs alike.ย
Which is the best debt mutual fund of 2024?
Aditya Birla Sun Life Medium Term Plan Growth for NRI is the best-performing debt mutual fund of 2024 with a return of 6.69% for 1 year and 12.48% for 3 years.
Can NRIs invest in Debt mutual funds?
Yes, NRIs can invest in debt mutual funds with ease after completing their mutual fund KYC and linking their NRO/NRE bank account to the KYC.
What is the taxation on debt mutual funds?
The debt mutual fund tax has been changed with effect from April 1, 2023, after the Budget 2023 brought certain amendments. Debt mutual funds will no longer be allowed to avail of indexation benefits from FY 23-24. Any gains made on debt mutual funds investment will now attract taxation on applicable slab rates of the investorโs income bracket.
Which is the best liquid fund for NRI to invest in 2024 for the highest return?
Aditya Birla Sun Life Liquid Plan Growth for NRI is the best liquid fund for NRI to invest in 2024. It has a return of 7.07% for 1-Year and 5.07% for 3-Year period.
What is the liquid fund taxation for NRI?
NRIs are liable to pay taxes on the capital gain earned from Liquid funds. The short-term capital gains for sell of liquid funds for a period under 3 years of holding are taxed at investorโs slab rates. After the Budget 2023 amendments, long-term capital gains wonโt enjoy any indexation benefit and will be charged as per the investorโs slab rates removing the LTCG benefits altogether.ย
What are the investment options for NRIs in India?
There are a plethora of investment options for NRIs in India. Theย top 5 investment options for NRIsย include Fixed Deposits, Mutual Funds, Stocks, Real Estate and GOI Securities.
How can NRI invest in Indian Mutual Funds?
An NRI can invest in Indian Mutual Funds using his/her NRE/NRO Account. The NRE Account is used to invest on a repatriable basis and NRO Account is used to invest on a non-repatriable basis.
Can I invest from the USA in India?
Yes an NRI can invest from the USA in India in various asset classes such as FDs, Mutual Funds, Stocks etc.
Can NRI invest in SIP in India?
Yes, an NRI can invest in India through the SIP route. SIP stands for Systematic Investment Plan.
