1. Can a Non-Resident Indian (NRI) /Person of Indian Origin (PIO) /Foreign Portfolio Investors(FPI) /Overseas Corporate Body (OCB) invest in Mutual Funds in India?
Yes, an NRI/ a PIO can invest in Indian Mutual Funds on a Repatriable/Non-Repatriable basis. However, OCBs (Overseas Corporate Body) cannot invest in mutual funds in India. However, NRIs would have to comply with all regulatory requirements such as completion of KYC before investing. However, a few countries such as US and Canada have restricted investments by NRIs in Mutual Funds without relevant disclosures. NRIs from these countries should therefore first discuss the feasibility of investing in Indian funds with their advisor before doing so.
2. How will NRIs invest in Indian MFs?
A pre-requisite for an NRI to invest in Mutual Funds, is to maintain an NRE, NRO or FCNR bank account in India:
Non-Resident (External) Rupee (NRE) Accounts: These are rupee accounts on a repatriable basis. They can be opened with either funds remitted from abroad or local funds, which can be remitted abroad.
Ordinary Non-Resident Rupee (NRO) Accounts: These are rupee accounts and can be opened with funds either remitted from abroad or generated in India. The amount in such accounts is non-repatriable.
Fully Convertible Non-Rupee (FCNR) Accounts: These are similar to NRE account except that the funds are held in foreign currency like Yen, Euro, etc.
3. How does an NRI invest in Schemes of Union Mutual Fund?
There are several ways to start investing in a scheme(s) of Union Mutual Fund:
1) Log in to www.unionmf.com
2) Email: Existing investor can transact by sending an email from their registered email id to our official email id firstname.lastname@example.org. The same needs to be supported with a fund transfer receipt and signed application form.
3) Chatbot: Investors can visit Unionmf (website link) and access the chatbot. The chatbot has a separate journey for both existing investors and new investors. So accordingly, the investor will proceed on the bot.
4) Whatsapp Bot: The investors can send “Hi” to us on our website link on Whatsapp and access various features available therein.
5) Alternatively, investors can opt for Physical mode by submitting the following documents - –
a. A Common Application Form (New Investor)/ Transaction Slip (Existing Investor) duly completed along with cheques / fund transfer proof should be submitted at the nearest Customer Service Centre of Union Mutual Fund/ Computer Age Management Services Limited. All cheques/fund transfer proofs accompanying the application form must be made in favour of the scheme’s name in which the investor wishes to invest.
b. KYC acknowledgement.
c. To invest on a repatriable basis: The investment amount should be from cheques drawn on the NRE/FCNR account of the investor, payable at the city where the application form is to be submitted.
d. To invest on a non-repatriable basis: The investment amount should be from cheques drawn on the NRO account of the investor, payable at the city where the application form is to be submitted.
e. FPIs may pay from funds held in a Foreign Currency account or Non-resident Rupee account maintained in a designated branch of an authorised dealer. The Indian Rupee cheques should be made payable at the city where the application form is to be submitted.
4. For NRIs and FPIs what would be the set of documents required for KYC and subsequent investment?
Since your KYC documents will be in the custody of KRA, for the AMCs records, you are requested to submit the below-mentioned documents to the AMC independently.
|Types of Entity||KYC Documents required||Investment documents required|
- KYC Form
- Colored Photo
- PAN Card - Self Attested
- Address Proof (Indian if Any) - Self Attested
- Address Proof (Overseas) - Self Attested
- Passport Copy (1st two pages & Last 2 Pages) - Self Attested
- Common Application Form
- Investment Cheque - with A/C Type Mentioned
- Bank Account Proof
- KYC Form
- Pan Card of FPIs
- Address Proof of FPIs
- Copy of SEBI Registration Certificate
- Authorized signatories list with specimen signatures
- Resolution/ Authorization to invest
- Common Application Form
- Investment Cheque - with A/C Type mentioned
- Copy of the Board Resolution for investment in the securities market
- Authorized signatories list with specimen signatures
- FATCA and UBO
5. What documents are acceptable as valid overseas address proof in the case of NRIs?
The following documents can be submitted as valid overseas address proof in the case of NRIs. For a detailed and more updated list of documents acceptable, please refer to the instruction section of the CKYC form.
1. Photocopy of valid passport mentioning the overseas address.
2. Photocopy of overseas bank statement not more than 3 months old.
3. Photocopy of bank statement or passbook of a Non Resident account
4. Photocopy of credit card bill not more than 3 months old.
6. How does an NRI investor redeem his/her funds?
• Online: Logon to our website www.unionmf.com
• Physical: Alternatively, in the case of open-ended mutual fund schemes, investors should fill up the redemption slip and submit it to the Customer Service Centres of AMC/Registrar. In the case of close-ended mutual fund schemes, the redemption slip has to be submitted at the stock exchange where the scheme is listed through a registered stock exchange member.
• Chatbot: Investors can visit Unionmf and access the chatbot to place the redemption request.
7. Is nomination by NRIs allowed in the schemes of Union Mutual Fund?
Yes. An NRI can nominate.
8. Can an NRI have a joint account in a scheme of Union Mutual Fund with a resident Indian?
Yes. An NRI investor can have a joint holding with a Resident Indian or a Non-Resident when investing in Union Mutual Fund.
9. What is the procedure to change the tax status from NRI to Resident Indian?
The investor needs to duly fill in the section on ‘Change in Tax Status’ given in the Non-Financial Transaction form and clearly mention the change in the tax status along with the subsequent change in bank details from NRE/NRO to Resident Indian. In addition, the investor needs to attach the cancelled cheque leaves of the NRI bank account from where the earlier investment was done and the new bank account.
Please refer to the Non-Financial Transaction Form available at www.unionmf.com for complete details.
10. Can a Power of Attorney (POA) holder invest on behalf of the NRI investor?
Yes, provided the POA submitted by the investor should contain a clause entrusting the POA holder to invest in securities on behalf of the NRI. Basis this clause the POA holder can invest, redeem, switch and do any other financial transaction on behalf of the investor both in online as well as offline mode. However, the POA holder cannot nominate on behalf of the NRI.
11. Can an investor redeem his/her MF units and change the bank mandate simultaneously?
No, please note that a request for change in bank details cannot be submitted along with a redemption request. Redemption payments will be processed and the last registered bank account information will be used for such payments. Further, if the Change/Updation of Bank Mandate/Multiple Bank registration has been made ten days, prior to the submission of the redemption request, then the redemption payments will be made to the new bank mandate. For such cases the payments will be made within the regulatory time limit and the normal scheme specific payment timelines will not be applicable.
12. What is the tax implication for NRI investors?
Under Section 2(42A) of the Income Tax Act, units of the fund held as a capital asset for a period of more than 12 months immediately preceding the date of transfer will be treated as a long-term capital asset for the computation of capital gains, thus qualifying for the long-term capital gains tax rate. In all other cases, it would be treated as a short-term capital asset and would be taxed at the short-term capital gains tax rate. For complete details in this regard please check the
Tax Ready Reckoner.
13. What is the proof of the Tax Deduction at Source?
A TDS certificate is issued in the name of the investor mentioning the details of the transaction and the tax deducted.
14. What is the TDS deducted for NRIs in case of dividend income received from mutual funds?
The income distributed to Non Resident Unit Holders, will be subject to TDS @ 20% plus applicable surcharge and Health and Education Cess.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Statutory Details: Constitution: Union Mutual Fund has been set up as a Trust under the Indian Trusts Act, 1882; Sponsors: Union Bank of India and Dai-ichi Life Holdings, Inc.; Trustee: Union Trustee Company Private Limited, [Corporate Identity Number (CIN): U65923MH2009PTC198198], a company incorporated under the Companies Act, 1956 with a limited liability; Investment Manager: Union Asset Management Company Private Limited, [Corporate Identity Number (CIN): U65923MH2009PTC198201], a company incorporated under the Companies Act, 1956 with a limited liability. Registered Office: Unit 503, 5th Floor, Leela Business Park, Andheri Kurla Road, Andheri (East), Mumbai - 400059. Toll Free No.18005722268/ 18002022268 Non Toll Free. 022-67483333 Fax No: 022-67483401. Copy of all Scheme Related Documents can be obtained from any of our AMC offices/ Customer Service Centres/ distributors as well as from our website www.unionmf.com