Investing in mutual funds can be a great way to build wealth in the long run. Over the years, the Indian mutual funds market has seen a great growth curve and increased participation from all, including residents, NRIs, and OCIs. The numbers in recent months suggest this growth with mutual fund SIPs crossing the Rs 20,000 crore mark in April 2024.
April 2024: A New High for Mutual Fund SIPs
In April, mutual fund SIP contributions hit a record high of Rs 20,371.47 crore, up 6% from Rs 19,270.96 crore in March and Rs 13,728 crore in April last year. Monthly SIP contributions have doubled from Rs 10,000 crore in September 2022 to Rs 20,000 crore in just a year and a half.
Similarly, the number of mutual fund SIP accounts reached a record high of 8.70 crore in April 2024, up from 8.39 crore in March 2024. Additionally, mutual fund folios hit an all-time high of 18.14 crore in April.
Also read: 10 Mutual Funds That Doubled Wealth In 5 Years
Overall, 63,64,907 new SIPs were added in April. The mutual fund SIP AUM (Assets under management) rose to Rs 11,26,128.67 crore from Rs 10,71,665.63 crore in March. Retail mutual fund folios, including equity, hybrid, and solution-oriented schemes, hit a record high of 14,53,57,892 in April, up from 14,24,42,823 in March.
The retail mutual fund AUM (Assets under management), which includes equity, hybrid, and solution-oriented schemes, was Rs 32,82,225 crore, with an average AUM of Rs 32,48,053 crore. The average AUM (AAUM) for mutual funds in April was Rs 57,01,358.87 crore, up from Rs 55,00,727.56 crore in March.
Also read: Best SIP to Invest in 2024 – Top 10 SIP Mutual Fund Plans for NRIs/OCIs
How to Invest in Mutual Fund SIPs as NRI/OCI?
NRIs can legally invest in mutual funds SIPs in Indian markets. This includes NRIs, Persons of Indian Origin (PIOs), and Overseas Citizens of India (OCIs). There are a few legal mandates like getting their Mutual Fund KYC done along with adhering to the rules of FEMA, SEBI, and RBI. Once your KYC is done, you can invest in domestic and international mutual fund schemes offered by Asset Management Companies (AMCs).
Getting your Mutual Fund KYC is mandatory to open an account to invest in mutual funds in India irrespective of the investment amount. The Securities and Exchange Board of India (SEBI) has specified a set of regulations under the Prevention of Money Laundering Act (PMLA), 2002 which mandates that mutual fund houses and intermediaries perform their due diligence on investors before they are compliant to make investments.
For more info on NRIs, PIOs, and OCIs, you can refer here.
Also read: Step-by-Step Guide for NRIs to Pick a Winning Mutual Fund
Investing in India made easy for NRIs with SBNRI
NRIs can now download the SBNRI App and choose to invest in different investment options in India with ease. You can also get detailed investment 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.
FAQs
Which is the safest SIP to invest in?
- It is suggested that the safest SIP to invest in are debt mutual funds as they invest in money market instruments, bonds, etc. Hence, the risks associated with these mutual funds are less. You can find different schemes under debt funds like dynamic bond funds, liquid funds, ultra short-term funds, gilt funds, etc.
Can NRI withdraw SIP anytime?
- Yes, NRI investors who have invested in SIP mutual funds can withdraw funds anytime. However, for certain cases like ELSS, the funds come with a lock-in period of three years.
Which is the best SIP for NRI to invest in 2024 for the highest return?
- Quant Small Cap Fund Growth for NRI is the best SIP mutual fund scheme for NRI to generate the highest return in 2024. The fund’s return is 40.26% for 1-Year and 46.52% for 3-Year.
What are the maximum and minimum amounts that an NRI can invest in SIP in 2024?
- NRI investors can start SIP mutual fund investment with a minimum amount of Rs 100. However, there is no upper limit on the maximum amount of investment that a NRI can make in SIP.
Is SIP tax-free for NRI?
- No, all SIP investments are not tax-free. Only investments in the Equity Linked Savings Scheme (ELSS) come under the purview of tax benefits up to Rs 1.5 lacs under Section 80 C of the Indian Income Tax Act, 1961.
Is SIP better than FD for NRI?
- SIP performance based on the historical data showcases at least 2x returns than Fixed deposit. Investing in SIP as NRI can help you beat inflation and generate high returns in comparison to the traditional FD/RD scheme.
Is SIP 100% safe?
- While SIPs can be a beneficial investment option for many, it’s crucial to recognize that no investment is completely risk-free. The safety of SIPs is influenced by several factors, such as the underlying investment instruments, market conditions, and the investor’s risk tolerance.
What is SIP 5000 per month for 20 years?
- If you start a SIP of ₹5000 per month for 20 years at an assumed annual return rate of 12%, your total investment will be ₹12 lakh. By the end of the tenure, the accumulated corpus will be nearly ₹50 lakh.
