Yes. An NRI from USA 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 like Zerodha that can help you get registered and handle your KYC requirements for a smooth investment experience.

The top RTAs in India for Mutual Fund Investments are CAMS (Computer Age Management Services) and Karvy. The Mutual Fund Investments can be done on both repatriable basis (for NRE Accounts) and non-repatriable basis (for NRO Account).

Invest in Mutual Funds in India: Mutual Fund Houses that accept investments from US

The following fund houses offer mutual funds for NRIs from USA and Canada:

• UTI Mutual Fund
• Navi Mutual Fund
• PPFAS Mutual Fund
• SBI Mutual Fund
• ICICI Prudential Mutual Fund
• Nippon India Mutual Funds
• Axis Mutual Fund
• Aditya Birla Sun Life Mutual Fund

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 etc.)

*(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) 

Note: NRIs need not pay double taxes. There is a provision called DTAA (Double Taxation Avoidance Treaty). If the DTAA is signed between India and the country of residence of the NRI, the NRI will not be paying double taxes on the same source of income. NRIs will however need to pay differential taxes. (For example: If for a certain investment, taxes are 30% in India and 40% in the USA, NRIs from the USA need to pay the remaining 10% to US.)

India has signed DTAA with more than 85+ countries all around the globe including USA, UK, Saudi Arabia and UAE. You can check the list of the countries and find additional information regarding DTAA here.

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