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.

Indian Mutual Funds

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....!!

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.