How to send money out of India?

Transferring money from India to abroad is no longer a hassle. In spite of government regulations, the banks have made it very easy to remit the money to any place on the globe. There are many methods of remitting money outside of India. Let us have a look at some of them.

Firstly comes in the most traditional and secure way of sending money to your pals. You can write a check and send it out of the country. It is mandatory that the amount mentioned in the check must of the currency of the destination place. It cannot be in rupees.

You will need to provide sufficient proof to the bank for sending the money to abroad. That proof might even have to be in the form of a legal document or letter. You will also need to furnish your passport in order to get the job done. It is only required as a verification procedure.

The process is simple. You can get a letter from the source bank saying that you have a valid account in the bank. The letter should contain the amount to be remitted and the account number. Visit an agency or branch that remits money. Do the necessary conversions to quote the amount in the foreign currency. Fill in the forms and wait for your turn to send the money. You will need a PAN card number from India. You can obtain yours here: http://www.pancardonline.com/.

PayPal is another very simple and secure option to remit money out of India. The only need for this method of transfer is that the source and destination members should have valid PayPal accounts. PayPal can transfer funds almost instantly and it can take place at any place on the globe.

A demand draft also works but it is a long procedure. Nowadays people are on the lookout for avoiding a visit to the banks. But one can always choose this option if they are not very familiar with online banking systems and technology. In India, especially wherein the traditional still visit banks to debit money out of their own accounts, I hate to wonder if they have no clue about a thing known by the name of ATM.

Wire transfer is the fastest and the most preferable mode of transfer. It is highly safe in the sense that before you remit the money the linking between both the accounts takes place. The security is the highest form and in case of wrong inputs or false logins the accounts won’t be linked which means that the transfer will never take place.

You can visit private banks like ICICI or even nationalized government banks like SBI. The advantage with ICICI is that it has a wide network and it also allows non ICICI customers to remit money.

All the methods of transfer are available on their website. For the ones who are willing to furnish lesser private information, SBI may be their preferred choice. Banks will always look to grab you for remitting money as charges are involved in them. So you keep an eye on them!

How to buy property in India?

If you hold an Indian passport but stay abroad for most part of the year for the purpose of business or employment, then you are regarded as NRI. One of the lucrative investment opportunities for NRI is the Indian real estate market. According to law, NRI cannot buy agricultural land in India. However, they can own houses, flats or land for residential or business construction. They can also buy or sell such properties.

Click here to learn the NRI property procedure:

Why should NRIs invest in Indian real estate?

There are several good reasons why NRI should buy property and houses in India. 

These are:

* If you own your own house or flat in India, you eliminate the cost of hotel rooms when you return – a cost that is becoming increasingly prohibitive.

* The falling value of rupee makes real estate a high return investment.

* Special tax benefits are available for NRIs who buy property in India.

* Legal hurdles have been removed and the process has been simplified.

* Confederation of Real Estate Developers in India (CREDAI) is floating great offers especially for NRI.

You can buy any immovable property in India except agricultural lands, plantations and farm houses. You can also sell them or transfer them as gifts. Inherited properties including agricultural lands too can be transferred as gifts.

Important things to know about NRI buying real estate in India

Here are some important things that you should know about NRIs buying real estate in India:

* You can get home loans to finance your buying of real estate. A maximum of 80% of the cost can be obtained as loan while the rest have to be paid directly by you.

* This residual amount can be paid directly from NRE or NRO account. Repayment of the loan is also to be done through the same channel.

* You have to bear the cost of stamp duty and registration duty but have to pay no other tax. 

* All the interest towards the home loan is deductible from the taxable income of the NRI without any upper limit.

* If you sell the property, you will have to pay capital gains tax like a resident.

* If you give your property in lease, then the income from the lease is taxable. If your country of residence does not have double tax avoidance agreement with India, you may have to pay tax on it in that country also.

* When you buy real estate in India, you need to watch out for several pitfalls. These are as follows:

     * Check if the seller has a clear property title, especially if the property is inherited.

     * Ask for a no due certificate from the seller. This certificate shows that there are no outstanding due to the municipality, electricity etc.

     * If the original flat or house had been constructed with a bank loan, a bank release letter must accompany the sale to show that the loan has been paid in full.

     * Check that the house has all the relevant permits and licenses from the civic authority.

     * It is necessary to make sure that the property is not under litigation.

You can buy the built property from real estate developers who also take care of maintenance. Often, expos are organized advertising such real estate deals. However, the information given in these expos may not always be reliable. It is best to get some relative to clarify the situation in India or to visit the country and see with your own eyes before you invest in real estate in India.

To get started on Real Estate, it is required for all NRIs to apply for a PAN card number in India. You can apply at http://www.pancardonline.com/. The process is simple. Get started soon.

What is the process to apply for a OCI card?

If you, your parents or your grandparents were citizens of India and later you (or they) renounced this citizenship and acquired a foreign citizenship, then you have the option to apply for OCI or Overseas Citizen of India. This OCI will allow you to stay and work in India while you retain your foreign citizenship. For example, you may have worked in a foreign country all your life, but you want to retire and settle in your original homeland without changing your citizenship. In such cases, you will need to apply for OCI.

The steps:

OCI application is a two step process. It is quite easy, but you should verify that you have all the documents needed and the photographs with correct technical specifications. Applications are often rejected due to problems with documentation or photographs.

The two step process for application of OCI is as follows:

* The first part of the process can be completed online. Regulations keep changing; so study the rules carefully.

* Go to . You may need to download security certificate to access the website.

* The next step is to select between “individual” and “family”. Family in this sense includes father and / or mother and minor children. Adult children, siblings or other members of the family will have to apply as individuals.

* The Form A will be displayed depending on your choice. Fill it up and check it for errors. Then, click on the submit button. If any field is entered wrong, you will get an error message. Correct the information, check and resubmit.

* If submission is successful, a copy of the Form A will be displayed. It will also show your registration number. You will have to print out a copy of this form.

* This completes the first part of OCI application. You will now be able to proceed to the second step and download Form B. you will have to print it out.

* Fill up the required information in Form B by hand. You can also type the information. Additional sheets may be used if needed.

* Once you have completed filling the form, you collect all the necessary supporting documents and photographs. You will get a list of documents needed at the end of the Form B.

* Once all the documents are in order, you will have to mail them in. send them to the Indian consulate in your place of residence. Be sure to mention the name of this consulate under “place of submission” in the form. You should send your application through Speed post or registered post. It is best not to send them by courier as this is discouraged.

Documents required: A number of supporting documents have to be submitted with your OCI application. A list is given at the end of Form B. double check this list because if you forget to send a document, it will lead to needless delay.

The required documents are as follows:

* Copy of your present passport.

* Surrender certificate if you had ever renounced the citizenship of India.

* Documentary proof that your parents or grandparents were citizens of India. These would include their passports or copy of domicile certificate, evidence of your relationship in the form of birth certificate where parents’ names are clearly mentioned. If your claim is based on your grandparents, then in addition to the above you will need to submit birth certificate of your parent which clearly shows their relationship to the said grandparent.

* School certificate and land ownership records are also accepted. However, you should consult Form B before sending in your application.

If you are looking to apply for a PAN card and not an OCI card, contact: www.nripan.com for assistance with your application. 

It is very quick and easy. They assist all NRIs, PIOs, and OCIs with their PAN process.

How can a NRI apply for Aadhar Card (UID)?

An Aadhar Card is available to everyone including NRIs now. It can serve as an Identity Proof document for those who have it. If you are an NRI and you wish to apply for an Aadhar card, here are the steps you will have to take…

1. The first thing that you will need is an ID proof document. Your passport copy or any valid government ID from any country will work. If you are not yet a citizen of that country, you must provide proof of why you are residing outside of India. For example: an employer certificate.
2. The second thing that will be asked of you would be the necessary forms to apply for an Aadhar Card. You can find the correct form by typing “Aadhar Form” into the search engine on your computer. You will need to submit this form.
3. The forth thing that will be asked of you would be your fingerprint and a scanning of your eyes. You will need to let them scan your fingerprints and eyes so that they can have it on file. This is the best way to have a true ID proof.
4. After you have completed all the above, you will be asked to have your photo taken. It is generally a passport size/style photo that will be taken so everyone will know how to identify you. They will also keep this photo on file.

Once you have completed all of the above steps, all you have to do is wait to receive the card in the mail. It generally takes anywhere from 1 to 3 months to receive. If you are an NRI in need of assistance to apply for a PAN card of India while sitting abroad, contact: http://www.pancardonline.com/

How to open NRE/NRO account in India?

When you are an Indian living outside of India, sometimes, managing funds can become a bit complicated. You have to figure out if you are paying taxes in your country, if you are paying taxes in India, where you would like to hold your money, and how you will get it into your pocket. In India, there are two different types of bank account options for NRIs. The two accounts offered are called an NRE account and an NRO account. There are some small differences between the two accounts, but not much difference. Once you learn all you need to know about the accounts, then you can decide on which account would be best for you and what you would like to do with your money.

If you are looking to open a bank account in India soon, you need to do two things first. The first thing is research. Almost every bank in India offers NRO and NRE accounts to NRI clients. You must first look into all of the banks and see who cuts you the best deal. You need to test their customer service before you open an account because you are living abroad and you need the best service available when concerning your money in case anything goes wrong.

The second thing you need to look into, if you do not already have one, is a PAN card. In India, you need to have a PAN card before you can open a bank account. When you go to fill up any bank forms, they will ask you for this number. A PAN card is nothing more that an individual ID number given to you by the IT department in order to track who has paid their taxes. It is pretty easy to get from abroad now too. When you open google, you can simply type “NRI pan card”. The results will give you many reliable sites that will assist you in applying from your home country. If you do not find any that you like, I would recommend using nripan.com or pancardonline.com. These sites are run by Nriinvestindia.com, which is a very trusted NRI hub. They can also help you with any other assistance you may need as a Non-Resident Indian.

Once you have done these two things, you will be ready to open up a bank account in India. You should not have any problems as they only ask for a few relevant documents. So, now you are ready to start your process.

What is an OCI card and how to get one?

OCI stands for Overseas Citizen of India. You can obtain an OCI card when you are looking to have a dual citizenship between India and another country. If you are an Indian, but you have moved abroad and obtained a foreign passport, you can apply for an OCI card.

An OCI card would be very useful when doing anything financial in India. You can work on an OCI card, you can invest on an OCI card, and you can buy property using your OCI card.

Why not a PIO card? It is Simple. If you were born in India, apply for an OCI card, if you were born in another country and are married to an Indian or of Indian origin, apply for a PIO card.

If you are in India and you are looking to apply for your OCI card, you will first need to visit the FRRO office and make sure that you can do that on the visa that you have. You will then need to visit the MHA office. This is where you will get the forms that you will need to fill up and return to the same place.

You usually need to provide your passport, visa, address proof abroad and in India. Proof that you have been an Indian citizen (copies of your old Indian passport will serve as proof). Once you have all of the documents, you also need to have passport size photos taken.

An OCI card comes in the form of a stamp on your passport and/or a passport size booklet with the country logo for India on it. Now that you have your OCI card, you can come to India and leave India as you please without any hassle when you go through customs.

Setting up a business in India as an NRI

A lot of people have started avoiding even the idea of starting a business in India. There is such a hassle involved that it seems not worth the idea. Things have gotten a little better over the years. There are now some simple steps that you can take to make sure that your process goes as smoothly as possible.

-  Get your business name approved in the state that you are opening the company.

- Register your company. This usually takes a few days.  

-  You need to obtain a Memorandum of Association. This Memorandum will state all of your company objects. Make sure to obtain the original.

-  You need to obtain Articles of Association. This Article will state all of your company financial regulations. Make sure to obtain the original. 

-  You need to obtain a Power of Attorney.

-  If you are going into business with any partners, have a legal agreement made for each partner to sign. 

-  Then, you will need to follow up with the Ministry of Company Affairs until you have received your Certificate of Incorporation. 

All in all, you should set aside at least forty days to get your business set up in India. It is best if you have a PIO card before you start. 

If you are living outside of India and are looking to start a business in India, you will first need to apply for a PAN card. You can do so at: http://www.pancardonline.com/apply.html

Also, let it be known that because you are starting a business in India, you will be required to file your taxes in India every year. Make sure that you register with the Director General of Foreign Trade if you are an export/import business.

Foreign Direct Investment: Money invested by an NRI.

Foreign Investment Promotion Board: The ones that approve an NRI’s investment.

Do I need a PAN Number to invest in India?

Nowadays, it is required that you have a PAN card to invest inIndia at all. This includes mutual funds, in real estate, and the stock market. When you are investing in India while living abroad in the UK, there is an easy way to get everything you need. You should start with a pan card.

NRIs apply for your PAN: http://www.indiapancard.in/apply.html

Investment in India is more common now, because the Indian stock markets are booming. The Indian economy has never been better. So if you are looking to invest your money, Indiawould be your best bet right now.

The Indian stock exchange was at 25% and still rising. If you plan and invest, you too can make your money grow and come out on top.

Companies: One of the most common ways to invest into Indiais through companies. There are many large companies based in India that are listed on both the Indian Stock Exchange   as well as in the USA. So you can even buy shares for that company by purchasing them from the Stock exchange in theUS. A good example of an Indian company that is worth investing in would be Reliance. Almost half of all Indian investors own stock from Reliance.

EFTs: Another way that you can invest in India is through ETFs. They are popular due to the lower risk involved with them. If you do not know what ETFs are, I would advise you to look into it so that you can keep your options open.

When is a PAN card Useful?

A PAN (Permanent Account Number) has not always been as important as it is today. Today, it is essential to have a PAN card when doing anything financial in India. When PAN was first introduced, the main purpose was for the IT department to keep track of who has paid their taxes and who hasn’t. Now, you need a PAN when investing, opening a bank account, getting a loan, filing taxes, opening a demat account, buying or selling property, etc. Some other less known uses for a PAN are:

A Bank Fixed Deposit: You now need a PAN card number in order to open a Fixed Deposit with your bank, unless it is less than Rs.50,000. If you do not have a PAN number, you will be charged a greater amount of interest. Then, you will not be issued a TDS certificate and the forms and other certificates will be invalid.

Hotel Payments and Restaurant Payments: If your bills are exceeding Rs. 25,000, many hotels and restaurants will ask you for a copy of your PAN card.

Travel Payments: If your bills are exceeding Rs. 25,000 when traveling international, many hotels and restaurants will ask you for a copy of your PAN card.

Rental Agreements: If you are thinking of renting a place, then you will need to submit a copy of your PAN to your landlord. They prefer this form of ID proof over any other.

Jewelry Payments: For any large purchase of jewelry, you will be asked to submit a copy of your PAN card by the jeweler.

Used Car Payments: It is necessary to submit a copy of your PAN card to a car dealership in India, before making your first payment.

Landline Phone Installation: You are required to submit a copy when getting a landline phone installed in your home.

Visa Centers: The visa centers need your PAN card number before giving you a visa.

PAN card has become a requirement for everything financial. It is not only used for tax purposes anymore, it is also the most legit form of ID proof.

PAN Card is just as important as an NRI

If you are living abroad, A PAN card is an important document for you to have as well. If you file taxes in India, have any income in India, or any other financial connections to the country, you are required to have a PAN number.

 
PAN Card Warnings:

-Identity Theft: Identity theft can become your problem after your get a pan card. You need to keep the card safe and with you at all times and be sure when you are mentioning your PAN number on applications. People can easily get a copy or obtain your PAN card number and misuse it. They can quote your PAN card number in transactions that you had nothing to do with.

What do you do if you are a victim of Identity Theft?

When a credit card is stolen and misused, you will probably know about it within a few days. When a PAN card is stolen and misused, it could take up to 8 months before you find out about it. When you go through form 26AS, your tax deduction statement, be careful to look over all the transactions carefully. This is where you will find if your PAN number has been misused. If you do not pay taxes, you will not have this form. When you submit a claim of identity theft to the IT department, they will ask you to prove that the transaction is not yours. This is a very tedious and time-consuming process. Before your give your PAN card details to anyone, be sure of whom you are giving it to.

What is a Phonetic PAN? (PPAN):

The phonetic PAN (PPAN) is a new concept introduced to insure that the same PAN card number is not given to more than one person. When PAN is allotted, the PPAN of the applicant is compared with the PPANs of all the people who have a PAN number in the same country. If there are identical PPANs, the PAN Officer will be notified. Then, the PAN card officer will have to produce a duplicate PPAN report for that applicant. The applicant will then receive a duplicate PAN card with a different PPAN.

If you are in need of a PAN card, visit: http://www.pancardonline.com/apply.html

How to Get India’s PAN Card?

Permanent Account Number (PAN) is issued by the Income Tax Authority of India. It generally used to quote on tax returns and other financial transactions in India. It is comparable to the Social Security Card in the USA.

Many NRIs living abroad have started investing in India because of the interest rates India has. Every time someone decides to invest in India, he/she must obtain a PAN card first. This can become a lengthy process in itself without going through an online broker. The online process has been made so simple that the majority of NRIs choose to take that route and pay more in service fees.

When you go through the PAN department directly, you almost have to be present in India in order to visit there office on a daily basis and make sure that everything is getting done. If not, sometimes there will be issues with your application and you will never know about it until 6 months later when you still haven’t received your PAN card. 

The online process is simply. You apply online and pay with your credit card, download forms and instructions, fill up the forms and provide the documents, then send everything to the broker’s office in India. Everything else is taken care of by them. Sending sensitive document all the way to India can be a problem so it is better if you send it to the broker, that way you can talk to them and make sure they have received everything all right. 

There a many brokers on the internet today that can provide you with fast service and get the job done in a timely matter. http://www.pancardnumber.com/apply.html is a broker that has been doing this for a long time. They have very good ratings. You will always have to send your documents by post with any legit broker because the government only accepts original signatures on applications. It is recommended that you send something that is traceable so that you know where your documents are at all times. The government sends your PAN card via India Speed Post. There are some brokers that will receive it at their office and send it via courier.

As time goes by, the government introduces more and more rules and regulations for all of these processes. It is easy now, but you never know how difficult it will become next month or the month after. It is always better to obtain your PAN card as soon as possible with all that in mind.

Rupee Depreciation : Is it the right time for NRI’s to invest in India?

With the Rupee depreciating in the last few months to as high as 21% against the Yen, the most asked question is, “Is it the right time to invest in India”.

Volatile global markets, risk aversion, Euro zone sovereignty issues, Greek debt, rupee depreciation;

these are terms that the investors all over the globe have become accustomed to these days.

With equities markets giving negative returns all over the globe and the rupee depreciating by over 12% to the USD, 6% against the Euro and over 21% against the Yen, the major question crossing minds of all NRI’s, PIO’s and OCI’s is “Is this the best time to invest in India?”

The Indian stock markets because of several reasons have underperformed the global markets as well as the emerging markets to a certain extend because of which investors are seeing negative returns, but if an investor has medium to long term view then this is the best time to invest in India. The Reserve bank of India has already given signs that interest rates in India have already peaked and if the inflation rate stabilize and start to reduce a bit the Reserve bank of India will start reducing rates which in turn will push the bond prices up. Looking at these scenarios NRI’s have lot of investment opportunities depending on their budget and the time frame they can remain invested for.

REAL ESTATE: Indian real estate prices have been on the rise and investors have even had 100% returns in certain metro cities in the last few years. Even the great 2008 recession was not able to stop this rally for a long time. With rupee depreciating NRI’s have more purchasing power in their hands.

Investors can earn three folds from investing in properties in India. After gold property is considered to be a hedge against inflation and property prices in India have more or less given 10% returns on an annual basis. These returns are much more than an average investor in the western world can hope of if they invest in their markets.

Investors can also earn from rentals from the property. With squeeze in supply over demand and the affordability factor rentals in the major metro cities is a decent income. You could easily get around 4% returns through renting your property and with luck favouring or with prime location the returns can increase to 5%.

With the rupee depreciating to the extend it is in the coming few months or years even if the reversal is half of what the rupee has depreciated you are still in line of getting at 6 – 7% returns because of the currency conversion. It would not be an over statement to say that investment in property can easily give you 30 – 40 returns in 2 – 3 years.

Equities: With sentiments running negative in favour of stock markets and risk aversion being the flavour of the scene an average investor is wary of investing in stocks markets. But despite all the negativity surrounding India at this moment the fact still remains that apart from China India is the only country in the world that is growing over 7% and has the potential of growing by 8 – 9 % annually. Even by the estimates of the World bank, India will grow at 7%.
This annual growth coupled with the rupee appreciation expected in few months coupled with the interest rates reduction Indian stock markets remains a destination where putting your money can give you extremely good returns in a medium to long term.

Bonds: With the reserve bank of India showing signs of start of the interest rates cycle the bond prices are expected to rise in the coning few months and it would be safe to assume that the would be offering good returns with no or very less risk. With the rupee depreciation offering currency conversion benefits these returns also can easily surpass the returns that investors can earn in the western world.

NRE Term deposits: With the Reserve bank of India deregulating the interest rates that the banks can offer on term deposits to NRI’s; NRI’s can gain from the high interest that India banks are offering and that too tax free.

The following investments you can refer to sites such as

www.icicibank.com
www.hdfcbank.com
http://www.NriInvestIndia.com/
http://www.NriCapital.com/
www.NHIA.org

Source:http://www.prlog.org/11884280-rupee-depreciation-is-it-the-right-time-for-nris-to-invest-in-india.html

Which is the best Mutual Fund Scheme in India?

We are often asked by clients to suggest please tell us which is the best mutual fund that I should invest in or please advise which mutual fund should I buy?

There is no single fund or scheme that can be described as best. NO fund or scheme fits into all the criteria for all investors. If there was a case then why would mutual funds companies launch 100’s of schemes? Every scheme has different benefits, is suitable for different time frames and carries different risks associated. If you ask an advisor, I want to invest INR 10000 per month, please tell me which fund should I invest in and he says invest in XYZ fund. Believe me he should be the last person whose advice you should accept.

As written earlier investors need to take into account lot of factors before deciding which fund they want to invest in. So if you want to invest in a mutual fund think of

Purpose and period of investment: Mostly investors have a purpose that they want to save for and based on that purpose they decide on the time frame that they can stay invested for. So lets say if you want to save for a car, then the time frame you are looking at is more or less 2 – 3 years, if you want to save for your kids education then you are thinking of roughly 10 – 15 years and if you are saving for your retirement then you are thinking for 20 – 30 years. Various kinds of funds also have different time frames that they are suited for. Like equity diversified fund will be more suited for a longer time frame, a balanced fund for a long term to mid term and debt and FMP for short durations. So the purpose and the suitability of the kind of fund with respect to the time frame you can remain invested for should be taken care of.

Risk profile: Every individual’s risk profile is different from the other. There are risk takers, risk neutrals and risk averse investors. Risk takers are the ones that are even ready to pay premium in order to get higher returns, risk neutral will be someone who will like to take little risk for high/mid returns, whereas risk averse will be someone who will take low returns but will not take any risk on the capital invested.

Similarly different category of funds also comes under different risk profiles depending on the underlining product they invest in. A fund that invests only in equities is of course more risky than the fund that invests in debt products.

Age profile: The age bracket one is in, responsibilities fulfilled, responsibilities pending and personal personality often determine the risk an individual can take. Keep this factor in mind while choosing the option you choose makes complete sense.

Past performance: Often people say, “This fund has given 18% returns annually for the last 5 years but what is the guarantee that the same will be repeated.” Agreed, there is no guarantee, but at least it gives you certain figures and reasons to base your future expectations on.

Who would you place your bet on to score a 100, Sachin Tendulkar or Rohit Sharma?

Of course Sachin, because he has performed over the years which even though is not a guarantee of future performance but gives us the reason to expect that he will score a 100.

Comparison can give you the wrong picture if you compare two different things. If you compare an apple with another apple the results will be valid and would serve good purpose, but if an apple is compared with an orange then the results will not serve any purpose and the decision taken on that behalf will always be wrong. Hence while choosing between two funds it should always be borne in mind that both the funds should belong to the same category and invest in the same asset class.

Size of the fund: Even though size of the fund does not matter directly but indirectly it does have an impact. Large funds more or less have a defined structure and protocols that are followed by fund managers. So even if the fund manager leaves them it does not affect the performance of the fund to a large extent.

Choosing the correct fund that you want to invest in has never been an easy task for an investor but with technology giving access to information, if investors weigh their options on the factors discussed then the chances that they will be able to choose the appropriate fund are pretty high. The best way still would be to take professional advice from people that deal with mutual funds.

VISIT http://www.NriCapital.com/ to Invest in Indian Mutual Funds ONLINE.!

Source:http://www.prlog.org/11877539-which-is-the-best-mutual-fund-scheme-in-india.html

How to invest in India’s Top Mutual funds Online?

No forms, no cheques, no standing in ques. Can an investor still make investment in Indian Mutual funds? Yes you can. “Welcome to the online investment in Mutual Fund world”.

Investors can now invest in mutual funds 24 x 7 x 365 using their online investment account with financial portals like http://www.NriCapital.com/, www.fundsindia.com, www.sharekhan.com and www.icicidirect.com. All you need is an account which can be opened by filling up a form and sending the KYC documents (as per the SEBI and RBI regulations)

. This is the only time you need to send any paper work. Once he account is active all the investments can be made without having to send any papers.

Who all can open this online trading account?

All Indian residents, NRI’s (Non resident Indians), PIO’s (Person of Indian origin) and OCI’s (Overseas citizen of India) are eligible to open the online trading account. Depending on your residential status the KYC documents may vary a little. Generally you would need a valid passport, a valid pan card, a valid residence proof and a bank account (NRE or NRO) with netbanking facility to open and operate this account.

Once we receive the documents the same are forwarded to CVLIndia to complete the know your customer norms. Once the KYC is completed the account is activated and you are ready to make your investments.

The bank account is linked to the online investment account that you open with us, which allows you to purchase units of MF’s from most of the AMC’s.

Which portals allow online investment in mutual funds?

There are lot of portals owned by AMC’s that allow you to invest in their mutual funds. So if you went to let’s say ICICI Mutual funds you could make investments in any of their schemes. Again you have to log on to lets say HDFC Mutual fund to buy their scheme. So still lot of head ache.

There are few good investment portals that allow you to invest in most of the good mutual funds under the same platform. So under one account you could invest in ICICI Mutual Funds, HDFC Mutual Funds, Quantum Mutual Fund, Taurus Mutual Fund, Birla, IDFC all under the same roof. Some portals charge a fees or transaction fees so please check with the portal.

You could try portals such as

http://www.nricapital.com/ - FREE All-in-1 Investment Platform

www.fundsindia.com

www.sharekhan.com

www.icicidirect.com

Source:http://www.prlog.org/11875162-how-to-invest-in-indias-top-mutual-funds-online.html

NRI Fixed Deposit Rates on Investment on FDs in India

There is a tremendous boom in the Indian economy. In the face of the economic slump, the Indian economy stands resilient. Previously, the trend was to migrate to the west which was experiencing an economic boom. But now the trend has reversed. Indians living abroad are thinking of investing in India. For a country that was seen as a land of little opportunities, it is now seen as a country of a plenitude of opportunities.

Can NRIs invest in India?

Whatever investment options are available to resident Indians, NRIs can make those investments too. However, this does not apply for persons of Indian origin as they cannot make investments in agricultural businesses in India.

NRIs can invest in the stock market of India. They may subscribe to the shares and debentures of Indian companies. They can do this based on a a repatriable or non-repatriable basis. The other options available for them are the Portfolio Investment Scheme and government securities.

The UTI issues units and NRIs can invest in these units through remittances from their bank accounts held domestically or overseas.

The type of account used by NRIs to make investments

There are three types of accounts a NRI can use to make an investment in India. They are:

·         Foreign Currency Non Resident Account

·         Non-Resident Ordinary Rupee Account

·         Non-Resident External Rupee Account

Understanding the 24% and 40% schemes

The 24% scheme allows Indian companies to open up their shares and debentures to NRI investments. This does not apply for Indian companies involved in agricultural business.

The 40% applies to equity purchase, preference shares purchase, and convertible debenture purchase. Such purchases should not exceed more than 50% of each issue’s face value. There is a limit to repatriation – up to 40% of new issues are not allowed to be repatriated.

This scheme has enabled many companies to raise capital without going to IPO. Under this scheme, NRIs can invest in Greenfield projects, expansion and diversification projects of currently operating companies.

The 24% and 40% scheme has seen many companies coming to India based on the backing of NRI funds. This trend has seen the IT sector boom in India. The IT sector rides high on the investments of NRIs. Small and medium sized IT companies back themselves up with NRI funds.

There has been a lot of debate on whether the scheme should extend to agricultural businesses.

How NRIs do Online Trading - Equity

Most of the reputable and registered brokers in India offer Online Trading facility in Equities for NRIs. Such Online NRI Trading Account opening involves the following:

1) Opening of Bank A/c with a PIS Designated Bank (DB).

2) Opening of Demat account with Broker.

3) Opening of Broking A/c with Broker.

What is a PIS Account?

PIS account (Mandatory for Indians living abroad): Portfolio Investment Scheme (PIS) allows NRIs to invest in shares of Indian companies, in secondary market, under repatriation or non-repatriation basis in respect of shares or convertible debentures sold or purchased through a registered stock broker on a recognized stock exchange. Any other modes of acquiring shares are not covered under this scheme ie, shares purchased through IPOs, as resident individuals, bonus shares etc.

What is a DMAT account?

Demat Account stands for a dematerialized account. The way one has to open a bank account if you want to park or save money; the very same way you need to open an online Demat Account for NRIs if you want to buy or sell stocks, and later save your stocks there in the Dmat Account. This Dmat happens to be maintained with a depository and is opened through a DP - Depositary Participant. At NriInvestIndia.com we specifically help NRIs, PIOs & OCIs to open a Online Dmat account in India. What is a Broking/Trading Account: Trading account is nothing but an account opened with a stock brokers, that would enable you to buy and sell shares or any other financial instruments through them.

NRI Mutual fund investment in India can be done in 2 different ways.

Categorically speaking:
1. Investments via using Power of Attorney.

2. Investments without power of attorney.

In general NRIs can invest into all major mutual funds like: Kotak Mutual Fund Franklin Templeton India Mutual Fund Birla Sunlife Mutual Fund Prudential ICICI Mutual Fund HDFC Mutual Fund TATA Mutual Fund Sundaram Mutual Fund Cholamandalam Mutual Fund Standard Chartered Mutual Fund DSP Mutual Fund Principal Mutual Fund SBI Mutual Fund Reliance Mutual Fund Deutsche Mutual Fund ABN AMRO Mutual Fund J M Financial Mutual Fund ING Vysya Optimix HSBC Mutual fund Fidelity AMC.

About the Author

Myself Aditya Sharma (Sr.Investment Advisor), and I work for a NRI Investment company (www.NriInvestIndia.com) that helps NRIs, PIOs and OCIs to invest in India's top mutual funds.

Here at NriInvestIndia.com we focus in delivering value service to our NRI clients when it comes to their investments in the Indian stock markets - NSE & BSE.

Can NRIs invest in Mutual Funds in India?

Non Residential Indians (NRIs) often ask whether they can invest in Mutual Funds in India or not. The answer is YES!! NRIs can invest in mutual funds in India and these investments can be made on a repatriable or on a non-repatriable basis, as preferred by the investor.

What is 'repatriable' basis?

To invest on a 'repatriable' basis, the NRI must have a Non Resident External (NRE) or FCNR Bank Account in India. The Reserve Bank of India (RBI) has granted a general permission to 'Mutual Funds' to offer mutual fund schemes on repatriation basis, subject to the following conditions:

1) The Mutual Fund should comply with the terms and conditions stipulated by Securities and Exchange Board of India (SEBI).

2) The amount representing investment should be received by inward remittance through normal banking channels, or by debit to an NRE / FCNR account of the non-resident investor.

3) The net amount representing a dividend / interest and maturity proceeds of units may be remitted through normal banking channels or credited to NRE / FCNR account of the investor, as desired by him subject to payment of applicable tax.

What is 'non-repatriable' basis?

The RBI has granted a general permission to 'Mutual Funds' to offer mutual fund schemes on non-repatriation basis, subject to the following conditions:

1) Funds for investment should be provided by debit to National Reconnaissance Office (NRO) account of the investor. Alternatively, funds may be invested by inward remittance or by debit to NRE / FCNR account.

2) The current income in the form of dividends is allowed to be repatriated.

It is important and useful to note here that no permission of the RBI either by the Mutual Fund or the investor is necessary.

Does an NRI need any approval from the RBI to invest in mutual fund schemes?

Many NRIs think that they need approval of the RBI to invest in mutual fund schemes in India. This is a myth. A NRI does not require any approval. Only the OCBs and FIIs require approval of the RBI to invest in mutual fund schemes.
 

About the Author

Myself Aditya Sharma (Sr.Investment Advisor), and I work for a NRI Investment company (NriInvestIndia.com) that helps NRIs, PIOs and OCIs to invest in India's top mutual funds.

Here at NriInvestIndia.com we focus in delivering value service to our NRI clients when it comes to their investments in the Indian stock markets - NSE & BSE.