NRI PIO Invest FAQ

Who is NRI? A Non-Resident Indian is a citizen of India (holding a valid passport of  Govt. of India) temporarily residing in the country of his/her present residence.  He/she should not have applied or planning to apply in the near future for acquiring citizenship of his/her present country of residence or any other country.     Can NRIs invest in Mutual Funds in India? Investments by NRIs in Mutual Funds can be made on a repatriable or on a non-repatriable basis, as preferred by the investor. Repatriable BasisTo invest on a repatriable basis, you must have an 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: The mutual fund should comply with the terms and conditions stipulated by SEBI. 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. The net amount representing the 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. Non-Repatriable BasisThe Reserve Bank of India (RBI) has granted a general permission to Mutual Funds to offer mutual fund schemes on non-repatriation basis, subject to the following conditions: Funds for investment should be provided by debit to NRO account of the NRI investor. Alternatively, funds may be invested by inward remittance or by debit to NRE / FCNR Account. The current income in the form of dividends is allowed to be repatriated. No permission of Reserve Bank either by the Mutual Fund or the NRI investor is necessary.     Does an NRI need any approvals from the Reserve Bank of India to invest in mutual fund schemes? No. As an NRI one does not need any specific approval from the RBI for investing or redeeming from Mutual Funds. Only OCBs and FIIs require prior approvals before investing in Mutual Funds.     What are the investment restrictions on NRIs for investments in Mutual funds? There are no investment restrictions on NRIs for investing in mutual funds. RBI does not restrict investment in mutual funds either on repatriable or non-repatriable basis.   Do Mutual Funds assure returns ? Although SEBI regulations allow Mutual Funds to offer guaranteed returns subject to the Fund meeting certain conditions, most Mutual Funds in India do no provide a guaranteed return on their schemes. In such cases, the sponsor, the AMC, or any other person, guarantees a minimum level of return and makes good the difference if the actual returns are less than the guaranteed minimum. The name of the guarantor and the manner in which the guarantee shall be met must be disclosed in the offer document by the Mutual Fund. Investment in mutual funds is not guaranteed by the Government of India, the Reserve Bank of India or any other government body.   Can I gift Mutual Fund units to my relatives in India? Yes. Certain funds do permit gifting of units. One should refer to the offer document of the specific fund to know the details.   Can I repatriate my earnings on redemption? If the investment is made on a repatriation basis, the net income or capital gains (after tax) arising out of investment are eligible for repatriation subject to regulatory guidelines in force at the time of repatriation. If the investment is made on a non-repatriation basis, only the net income, that is, dividend, arising out of investment is eligible for repatriation.   Can I repatriate my initial investment, earnings (capital gains) from redemption and any dividend arising from it?  If the investment is made on a repatriation basis, the net income or capital gains (after tax) arising out of investment is eligible for repatriation subject to regulatory guidelines in force at the time of the repatriation. If the investment is made on a non-repatriation basis, only the net income, that is, dividend, arising out of investment is eligible for repatriation.   What is the procedure for redeeming mutual fund units? NRIs can redeem their units by signing on the tear-off portion of the account statement & sending it to any of the AMC or your personal MF investment advisor through post or by sending a letter requesting redemption with the signatures and the amount to be redeemed. The redemption request would be processed at the applicable NAV based price. The redemption proceeds will be sent directly to the bank branch where NRE/NRO account depending upon whether repatriable or non-repatriable account within three business days. The redemption proceeds will be net of tax deduction at source on the profits.   What is the tax liability on Redemptions? What is the rate of Tax Deduction at Source for NRIs / PIOs? What is the tax - rate on capital gains for NRIs / PIOs? Under Section 2(42A) of the Income Tax Act, units of the Scheme held as a capital asset, for a period of More than twelve months immediately preceding the date of transfer, will be treated as a long term capital asset for the computation of capital gains � thus attracting long term capital gains tax rate. In all other cases it would be treated as a short-term capital asset and would attract short-term capital gains tax rate. Hence depending on the period of investments, long term or short capital gains and tax thereon is applicable on redemption�s. Though there is currently no long-term capital gain tax liability for redemptions from equity schemes, there is a liability at the time of redeeming from the debt schemes. For more details Contact Us

Look at Life Insurance as a Tax Free savings Vehicle

History of Insurance in India:

The history of Insurance in India - a Federal subject - dates back to 1818. The Insurance sector in India has great growth potential vis-a-vis global players especially with life insurance premiums amounting to 2.5% of India's GDP and general insurance premiums to 0.65%.

The Insurance division in India perhaps witnessed the greatest change in the year 1999 when the Government of India liberalized its economy permitting private companies to come in and implore the insurance sector facilitating the FDI up to 26%.  Earlier only LIC (Life Insurance Corporation of India) was allowed to sell & underwrite life insurance.

The Indian Insurance sector currently is such that all insurance companies, worldwide, intend to have a lion's share. However, the Government of India even today, owns the largest life insurance company LIC.
Why is Insurance important?

Life insurance is important because life itself is extremely precious. What began as a measure to reduce the risk of traders and merchants has today become a pivotal part of all civilians' lives. Life insurance guarantees the enjoyment of the same lifestyle even after the unfortunate demise of a loved one. The beneficiaries can utilize the money as a source of income or to pay off debts, amongst others.
 

NRILIC.com has been serving world wide customers with medical insurance needs. We are part of the same group and help you find the right life insurance policy for you. Though it is difficult to pin down that one particular policy suited for you, specially with choices varying between term life insurance, ULIPS, endowment plans and whole life policies, with the help of technology we can definitely help you find one that satisfies your needs. All you need to do is fill up the online form provided and we will would help you get hold of the best life insurance policy from dependable insurers.
Our process for NRIs or PIOs:

At NRILIC India Investments we are ready to serve our clients 24x7 with our  personalized one on one approach to service. We are not affiliated with just one insurance company, you can be assured of getting the best deals and free insurance quotes from various Indian insurance companies offering NRI insurance services online. You are also shown the entire choice-making process. Booking insurance through us is fast, reliable and easy. As a professional team, we show evidence of the same in all our dealings and hence win not only great customers buy also wonderful friends.

We personally feel for NRIs & PIOs Life Insurance a a vehicle for Tax Free Investment growth. If you are purely looking for Life Insurance then you have better choices from US companies who offer pure term life insurance.

One size does not fit all, and hence we try to get tailor-made policies for our clients as we understand your exact requirements and desire your full satisfaction. In addition, we offer our clients access to various online services.


Ask our Financial Advisor: Nrilic was formed by Non Resident Indians from USA. As per Indian law we cannot provide you service without knowing our customers (this is called as KYC - Know Your Customers act). So we deal on a one to one basis giving that personal touch. If you would like to personally meet our adviser at a time and place convenient to you, such a meeting can be arranged. All you have to provide us with is some basic information using this online form & our advisor will get in touch with you.

Do you want to Invest in India?

Do you want to Invest in India?

We can help you with
1) Life Insurance for NRIs (Non Resident Indians) or PIOs (Person of Indian Origin, which includes your american citizen kids as well.)
2) Mutual Funds in India.
3) Post Office Savings, Coporate Bonds.
4) ULIPS (Unit Linked Insurance Plans)

Fill - Contact Me Form

Contact Us

To get personalized info or if you want us to call you then please fill this short form.

Ravindra Jain
Insurance Agent; India Mutual Funds Advisors, Financial Planner

AMFI ARN Licence # 0531

Qr#7A, Street 4, Sector 1 Bhilai • CG • INDIA
Phone +91 (788) 227 8779  (O) +91 (982) 715 9973 (M)
USA - Phone (408) 890-6422
Email: bhilai@gmail.com
Web: http://invest.nrilic.com/
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About Us

NRILIC India Investments is a registered and licensed financial advisor and broker for India based Investment products. We are trusted Financial Planner, NRI Portfolio Managers, Investment Advisor and Brokers for all Indian Mutual Funds, ULIPs, Company FDs, Post Office Savings, PPF & LIC.

We have been in this business since 1989 and have had a large presence in central India through traditional Brick and Mortar shop. Using web presence we have expanded out to NRI & PIO community throughout the world and also have a US (West Coast) representative office.

If you need to talk to someone in USA we can provide you references and also arrange for face to face appointments in west coast ( san jose bay area).