HDFC Asset Management Company Ltd. is one of the most popular fund houses in India that offers a wide range of mutual funds to resident as well as NRI customers. Indians living abroad can invest in HDFC Mutual Funds for NRIs to get the advantage of diversification, liquidity, professional management, etc. HDFC offers different types of mutual funds for NRIs including growth funds, or even retirement funds to cater to investors from all walks of life.
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NRIs can invest in mutual funds to achieve any financial goal – long-term, short-term, retirement, tax savings and so on.
Features & Benefits of HDFC Mutual Funds for NRIs
Mutual funds can be an easy option for NRIs to grow their wealth because they give the ability to easily invest in increasingly more complicated financial markets. Diversification, professional management and liquidity are advantages of mutual funds. Here are the benefits of HDFC Mutual Funds for NRIs.
- Flexibility: Mutual Funds offer investors the flexibility to invest through options such as systematic investment plans (SIP), systematic withdrawal plans (SWP) and dividend reinvestment (DRIP).
- Affordability: Mutual funds can be bought in units which makes them very affordable. It allows even a small investor to invest in a large corpus and get benefits from the investment strategy.
- Liquidity: In open-ended schemes, investors have the option of withdrawing or redeeming their money at any point of time at the current NAV.
- Diversification: The risk is reduced as the investment is allocated across various financial instruments, industries and stocks.
- Professional management: Expert fund managers at HDFC AMC Ltd. analyze all options based on experience and research for their clients to bring the highest possible returns.
- Potential of return: The fund managers collect information and statistics from leading economists and analysts around the world. With good market know-how, they are in a better position than individual investors to identify opportunities for your investment to grow exponentially.
- Low costs: The benefits in brokerage, custodial and other charges reduce the cost of investment for investors.
- Regulated for investor protection: The mutual fund companies are monitored and regulated by the Securities and Exchange Board of India (SEBI), which safeguards the investor’s interests.
The relationship managers at HDFC will help you determine your profile based on your goals, risk tolerance, market condition and possibilities. Your investment profile helps you select the types of investment that are most suitable for you.
Eligibility for investment in HDFC Mutual Fund for NRIs
- Since a customer ID is mandatory, the applicant needs to have an NRI (NRE or NRO) bank account with HDFC Bank.
- The savings bank account has to be held singly or either/ survivor basis.
- Mutual fund applicants have to sign the account opening application form.
- PAN (Permanent Account Number) is mandatory for investments into mutual funds for all investors. Hence, NRIs who wish to invest in mutual funds are required to have a PAN card.
- NRI customers need to get the PAN card copy attested by the Indian Embassy before sending the PAN card to the home branch or the relationship manager. The KYC documentation is processed by CVL Ventures Ltd.
- The PAN card has to be attested by the relationship manager as ‘Seen Original & Verified’ before attaching the same with the ISA form.
- The bank account holder needs to sign the account linkage letter.
HDFC offers investors the freedom to invest as and when they want from the comfort of their home or on-the-go through the HDFC NetBanking option. Investors can purchase, redeem and switch funds and investment preferences at their own convenience. You need to pay a nominal, flat quarterly maintenance fee to avail all this. You can complete the following tasks online.
- Purchase, redeem and switch funds easily with HDFC NetBanking.
- Link any one of your HDFC NRI Bank accounts to an investment services account to invest in mutual funds.
- Added security as validation/ authentication is based on a unique Internet Password (IPIN) for NetBanking.
- You can view the NAV (Net Asset Value) and other details for all your holdings easily.
- Make final confirmation before initiating the purchase.
- Receive direct credits on redemption and dividends payouts to your account.
- Choose from AMC schemes for purchase and redemption.
- For the same-day NAV, the NetBanking cut-off time is 2.00 PM.
- NRIs can share their attested (by Indian Embassy) PAN card copy for KYC compliance acknowledgement for online mutual fund investments. However, the actual processing of KYC documents is done by CVL Ventures Ltd. You need to fulfil any other requirements raised by them.
NRI mutual funds – Cut-off timing
The cut-off time for the same day NAV is 2:00 p.m. (Indian Standard Time). All instructions received on a transaction day before the cut-off time will qualify for same day’s NAV (except on Saturdays, Sundays and Holidays). For transactions received after the cut-off time, NAV will be applicable as on the next working day.
In the case of the liquid scheme, NAV will be computed as mentioned below:
- The cut-off time for historic NAV is 12:30 p.m. (Indian Standard Time). All instructions received for transactions the day before the cut-off time will qualify for historic NAV (except on Saturdays, Sundays & Holidays).
- The cut-off time for the same day NAV is 2:00 p.m. (Indian Standard Time). All instructions received for transactions the day after 12:30 pm and before the cut-off time (2:00 pm) will qualify for the same day’s NAV (except Friday, Saturdays, Sundays and Holidays).
- If the liquid scheme transactions are executed after 2:00 p.m. (Indian Standard Time), cut-off time on Thursday but before 12:30 p.m. (Indian Standard Time) cut-off time of Friday, the NAV for Thursday would be applicable.
- For liquid scheme transactions done after 12:30 p.m. (Indian Standard Time) on Friday but before 2:00 p.m. (Indian Standard Time) cut-off time of Friday, the NAV for Sunday would be applicable as per AMC rules for NAV applicability (NAV for the next business day will be applicable).
- For liquid scheme transactions done after 2:00 p.m. (Indian Standard Time) cut-off time on Friday or transactions done on any holidays, Saturday or Sunday, the applicable NAV will be that of the next declared NAV from AMC end.
- For liquid scheme transactions done after 12:30 p.m. (Indian Standard Time) on a day before a non-working day, the applicable NAV will be as per the holiday. (In case of the consequent holidays, the last holiday NAV is taken as the Holiday NAV).
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Before investing in Indian market, NRIs must consult market experts to make informed decisions. You can get detailed mutual fund advisory from experts at SBNRI. You can download SBNRI App from the Google Play Store or App Store to ask any questions related to mutual fund investment, NRI account opening online and tax filing in India. To ask any questions related to Mutual Funds, click on the button below. Also visit our blog and YouTube channel for more details.
Yes, NRIs can invest in HDFC Mutual Funds on a repatriable/ non-repatriable basis as per the provisions of Schedule 5 of the Foreign Exchange Management Regulations. To invest on a repatriable basis, the NRI must have an NRE or FCNR account in an RBI registered bank. To invest on a non-repatriable basis, funds for investment should be provided by debit to the NRO account of the NRI investor.
An NRI can’t invest in mutual funds with foreign currency. He/ she needs to provide an HDFC Rupee cheque from his/ her NRE/ NRO bank account in India to invest in an NRI account. Although he may also send the cheque from abroad payable to a bank in India, it is mandatory that the account is maintained in a bank in India.
No. You will need to contact your authorized dealer for this service.
The digitally signed TDS certificate is sent to the investors once in a quarter.