Indian Mutual Funds: What Are they for NRIs?
A mutual fund is nothing but a collection of stocks and/or bonds. You as an NRI - Non Resident Indian can think of a mutual fund as a company that brings together a group of people and invests their money in stocks, bonds, and other securities. Each investor owns shares, which represent a portion of the holdings of the fund.
NRIs - Non Resident Indians can make money from Indian Mutual Fund in 3 ways:
1) Mutual Fund Income is earned from dividends on stocks and interest on bonds, held by the mutual fund.
2) If the Indian Mutual fund sells securities that have increased in price, the Mutual fund has a capital gain.
3) If Mutual fund holdings increase in price but are not sold by the fund manager, the Mutual fund's shares increase in price. You can then sell your Indian mutual fund shares for a profit.
*** Mutual Funds will give you a choice either to receive a cheque or to reinvest the earnings and get more shares.
Advantages of Mutual Funds for NRIs:
• Professional Management - Primary advantage of Indian mutual funds is the professional management of your money. An Indian mutual fund is a relatively inexpensive way for a small investor to get a full-time manager to make and monitor investments.
• Diversification - By owning shares in India's mutual fund instead of owning individual stocks or bonds, an NRI's - Non Resident Indian's risk is spread out because large Indian mutual funds typically own hundreds of different stocks in many different industries in one mutual fund itself.
• Economies of Scale - Because a mutual fund buys and sells large amounts of securities at a time, thus the transaction costs for NRIs - Non Resident Indians are lower.
• Liquidity - Just like an individual stock, an Indian mutual fund allows you to request that your shares be converted into cash at any time.
• Simplicity - An NRI - Non Resident Indian living abroad can buy and sell Indian mutual funds online easily and quickly....!!
A mutual fund is nothing but a collection of stocks and/or bonds. You as an NRI - Non Resident Indian can think of a mutual fund as a company that brings together a group of people and invests their money in stocks, bonds, and other securities. Each investor owns shares, which represent a portion of the holdings of the fund.
NRIs - Non Resident Indians can make money from Indian Mutual Fund in 3 ways:
1) Mutual Fund Income is earned from dividends on stocks and interest on bonds, held by the mutual fund.
2) If the Indian Mutual fund sells securities that have increased in price, the Mutual fund has a capital gain.
3) If Mutual fund holdings increase in price but are not sold by the fund manager, the Mutual fund's shares increase in price. You can then sell your Indian mutual fund shares for a profit.
*** Mutual Funds will give you a choice either to receive a cheque or to reinvest the earnings and get more shares.
Advantages of Mutual Funds for NRIs:
• Professional Management - Primary advantage of Indian mutual funds is the professional management of your money. An Indian mutual fund is a relatively inexpensive way for a small investor to get a full-time manager to make and monitor investments.
• Diversification - By owning shares in India's mutual fund instead of owning individual stocks or bonds, an NRI's - Non Resident Indian's risk is spread out because large Indian mutual funds typically own hundreds of different stocks in many different industries in one mutual fund itself.
• Economies of Scale - Because a mutual fund buys and sells large amounts of securities at a time, thus the transaction costs for NRIs - Non Resident Indians are lower.
• Liquidity - Just like an individual stock, an Indian mutual fund allows you to request that your shares be converted into cash at any time.
• Simplicity - An NRI - Non Resident Indian living abroad can buy and sell Indian mutual funds online easily and quickly....!!
Visit www.nriinvestindia.com for Free Investment Advice
www.nriinvestindia.com is an investment website online that will answers questions and queries of NRIs:non resident Indians living anywhere in the world to do investments in India through Indian mutual funds and Indian stock markets online.
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