NRI Guide · India Investments
NRI Investment Options in India
Mutual funds, NPS, direct equity and more — what NRIs can invest in, which accounts to use, and the FEMA rules that apply.
NRE vs NRO Account — What's the Difference?
| Feature | NRE account | NRO account |
|---|---|---|
| Source of funds | Foreign earnings remitted to India | Indian-source income (rent, dividends, pension) |
| Repatriation | Freely repatriable — no limit | Restricted — USD 1 million/year after tax |
| Interest taxability | Tax-free in India | Taxable in India (TDS applies) |
| Joint account | With another NRI only | With resident Indian allowed |
| Mutual fund investments | Yes | Yes |
Which account to use for investments?
Use an NRE account if you're investing foreign earnings and want free repatriation of profits. Use an NRO account if you're reinvesting Indian-source income (rent, salary from earlier India stint, etc.). Many NRIs maintain both.
What Can NRIs Invest In?
| Asset class | Allowed? | Key notes |
|---|---|---|
| Mutual funds (equity + debt) | Yes | Most fund houses accept NRIs. US/Canada residents: restricted by some AMCs due to FATCA — check per fund house. |
| NPS (National Pension System) | Yes (age 18-70) | 80CCD deduction available under old regime. Annuity mandate on exit. |
| Direct equity (stocks) | Yes | Via Portfolio Investment Scheme (PIS) with RBI-designated bank. Additional compliance; most NRIs prefer mutual funds instead. |
| Real estate | Yes (restrictions) | Residential and commercial — yes. Agricultural land and farmhouses — no. TDS applies on sale proceeds (20-30%). |
| PPF | Existing accounts only | NRIs cannot open a new PPF account. Existing accounts can be maintained till maturity (no extension). |
| Sukanya Samriddhi Yojana | Only if child is NRI | Account must be closed if guardian becomes NRI. |
| Government bonds / T-bills | Yes | Via Fully Accessible Route (FAR) bonds or NRI quota in G-secs. |
| Cryptocurrency | Technically possible | High regulatory risk; treated as VDA, taxed at 30% flat. Not recommended. |
US / Canada NRIs — Special Restrictions
Due to FATCA (US) and FBAR reporting requirements, some Indian AMCs (mutual fund houses) do not accept investors who are tax residents of the US or Canada. The list changes — we track this and route you to the right fund houses.
AMCs that generally accept US/Canada NRIs (as of 2025)
Nippon India, SBI Mutual Fund, UTI, HDFC MF, Aditya Birla Sun Life, Sundaram, DSP, Mirae — with FATCA declaration. Axis, ICICI Prudential, Kotak and some others have restrictions. We verify eligibility for you before investing.
How to Start Investing in 5 Steps
Open NRE/NRO accountWith any major Indian bank (HDFC, ICICI, SBI, Axis). Can be done online from abroad.
Complete NRI KYCVideo KYC or in-person. Documents: passport, overseas address proof, FATCA declaration, PAN card.
Select eligible fundsWe identify which AMCs accept your country of residence and recommend a suitable allocation.
Link bank accountRegister your NRE/NRO account with the fund house. SIP mandates are set up via NACH or e-mandate.
Monitor & rebalanceWe send quarterly reports and flag rebalancing when allocation drifts or goals change.