7 Ways to Help NRI Clients Invest In Mutual Funds

So, you have got a lead for NRI client who might be interested in investing in mutual funds. Here are the seven things you need to do URL: https://youtu.be/9ikKDUkzOVU Subscribe: https://www.youtube.com/channel/UCQTqvgT_qzPZn1D1bHsxtKw?sub_confirmation=1 Find out if the NRI client can invest There could be countries where such investments may not be allowed. Further, some fund houses may not want to sell mutual funds to NRIs from certain countries due to regulatory procedures. Explore the possibility of client’s representatives making investments It is likely to be difficult for the client to complete investment related formalities, such as buying units, switching, redemption and, so on. His India-based representative could do all this and more, with the help of a registered Power of Attorney (PoA). Get essential details of Power of Attorney (PoA) Get the signature and the PAN card details of the NRI’s representative on the Power of Attorney. PoA needs to be notarised and then registered with the fund house. Get the KYC done Know Your Customer (KYC) procedure needs to be done for both the NRI and the Power of Attorney holder. The NRI needs to be personally present for in-person verification of the KYC application. Ensure client has a bank account in India To invest in mutual funds in India, NRIs must have bank accounts in India. Since the investment is only allowed in rupees, NRIs will need to make choice between NRE and NRO accounts depending on their repatriation needs Submit FIRC For investments in mutual fund units, the NRI client and his representative would need to submit FIRC (Foreign Inward Remittance Certificate) or confirmation letter issued by the bank confirming the source of the funds. Alternatively, a photo copy of rupee draft or banker’s cheque could be sought. Check whether the fund house allows direct debit for the purchase of mutual fund units by NRIs and if there are restrictions for online transactions. Check for double taxation Indian tax laws will apply on all mutual fund investments in India. NRIs need to check the tax treatment in their country of residence. A double taxation avoidance agreement (DTAA) between two countries will help the client being taxed twice. Help the client in getting relevant tax-related information. Clearly, the advisor needs to do significant hand-holding to get NRI clients to invest in mutual funds. We hope you found this useful. For more, download our mobile app, visit our website www.fundoomoney.com and subscribe to our YouTube channel and digital magazine FundooMoney Advisor, available on leading digital news stands. Also, follow us on Instagram, Pinterest and Slideshare.

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