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Query regarding Mutual Fund investment in SIP mode for US & Canada NRIs

I started SIP in SBI/ICICI/HDFC/IDFC and UTI mutual funds in 2013 while I was in India and still continuing. Today, my status has changed to NRI (US/Canada based). How should I reshuffle my SIPs so that I am legally invested and FATCA complied? As per the forum, UTI and SBI are accepting investors from US/Canada now. What should I do with ICICI/HDFC/IDFC funds which are already there in my portfolio? How do I update my NRI status in all the mutual fund house? Please suggest?

Aug 1, 2016 by Raju,   |   Mutual Fund

1. As your status has changed from resident individual investor to NRI (US/Canada), you should inform this to the respective AMCs.

2. You will also have to submit revises KYC and FATCA forms. In the FATCA form you should mention your India Tax number i.e. PAN No. as well as the US tax account number. In the KYC form you will have to provide your US as well India addresses along with address proof and bank details.

For Indian address proof you may submit any one supporting document like, Indian passport, driving license, bank account statement, Aadhar Card no., Voter Id Card or electricity bill. Whereas, for Us address proof, any utility bill or US driving license will do.

3. You are right, UTI and SBI Mutual Funds are accepting investments from NRI (US/Canada). However, HDFC Mutual Funds is still not accepting investments from NRI (US/Canada).

4. IDFC Mutual Fund – They have started accepting investments from NRI (US/Canada) effective today. However they are taking only lumpsum investments and not SIPs

5. ICICI Mutual Fund – They have started accepting investments from NRI (US/Canada) effective 25th July 2016

6. Once the above KYC and FATCA formalities are done, you may change the status and bank details in your existing schemes where investment from NRI (US./Canada) is allowed. You will have to change your bank details by providing the NRO bank account no. and cancelled cheque and replace the savings bank account details in your existing investments. Later on, when you make fresh investments, you can make investments from NRI and NRE accounts, both. Please note that investments made from NRE account would be fully repatriable.

7. Regarding your existing SIPs, you will have to close them and start new ones from your NRO/NRE bank accounts excepting IDFC Mutual Fund.

8. Your physical presence in India is mandatory on the day you invest as NRI (US/Canada).

We have replied to a similar query which you might like to read https://www.advisorkhoj.com/post-your-queries/Which-mutual-funds-in-India-are-accepting-investments-from-US-and-Canda-based-NRIs

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