Which are the best mutual funds to invest in India for NRIs

I am an NRI working in Kuwait and looking to invest about 10L currently with a plan to invest about 30,000 monthly and sometimes maybe higher. I would like to have monthly returns after retirement in 5 years. My aspirations are as follows - 1. All funds to be repatriable, meaning taken in dollars whenever needed, 2. Must be able to provide return monthly returns at some point in time from now, 3. In case anything unfortunate happens here at work or in Kuwait, need to be able to close the fund and clear the loan, 4. Tax free returns are preferable, 5. Must be in legitimate source or fund and must be diversified among several funds to avoid depreciation of all capital in case of unfortunate events, 6. I must be able to take loan against this mutual funds to construct my house in India or abroad, 7. Whatever money I withdraw a month should be less than the rate the money grows. So there is net growth in total, 8. If I don't need money any month, I can reinvest it that month when the repayment period starts, 9. should have option to input funds monthly and also option to input chunks of money as when I get them, 10. Must have good growth potential equity and aggressive is better. Awaiting your response. What is your fee structure? How do you charge fees? Kindly let me know how we can proceed?

Aug 29, 2017 by Hansen D'souza, | Mutual Fund

Please note the following suggestions in context to your queries -

1. To repatriate funds you should invest from NRE account

2. Monthly income can be availed by withdrawing a fixed monthly amount through SWP option from your lump sum investments in mutual funds, whenever you want. Please read this https://www.advisorkhoj.com/post-your-queries...

Please check this too https://www.advisorkhoj.com/mutual-funds...

The other option is to invest in schemes which has good track record of monthly dividend payout (this option is available mostly with balanced funds and hybrid debt funds) https://www.advisorkhoj.com/mutual-funds... However, the dividends are not guaranteed / assured in mutual funds.

3. In case of any unfortunate event, your nominee should be able to redeem the mutual funds units/ or transfer the same in his / her name and pay off the debts / loan etc. However, the investments need to be in open ended funds only. You can nominate more than one person or more in your mutual fund investments.

4. Dividends received from mutual funds are tax free in the hands of the investors. Also, long term capital gains tax (investments held for more than a year) in case of equity and balanced funds are also tax free.

5. Investing in mutual funds should be based on your risk taking ability and the investment horizon. Therefore, you must assess your risk profile before investing in mutual funds and then diversify your investments in suitable funds accordingly.

6. Yes, you can avail loan on your mutual fund units from your bank. Generally banks lend upto 60-75% of the value of your mutual funds investments on the day you are availing the loan.

7. Returns in mutual funds are not assured but you can assume a return depending upon the category of funds that you will be investing in. Suppose you are investing in balanced funds or equity funds, you can assume an average annual return of approx 12% provided your investment horizon is at least 5 years.

8. You can draw a fixed amount through SWP every month. However, you should withdraw only the amount needed every month and should not overdraw. We always suggest not to draw more than 8% annually from your investments. However, if you are left with any surpluses in any month, you can park the same in liquid funds as emergency corpus. Please check this https://www.advisorkhoj.com/post-your-queries...

9. You can redeem any time or invest through lump sum or SIP or as and when basis in your existing open ended mutual fund folios.

10. As we said earlier, you should choose funds based on your risk taking ability. Potential return from equity mutual funds, especially from diversified equity funds and mid cap funds is very high but they come with high degree of risk.

You can choose top performing mutual funds from this section https://www.advisorkhoj.com/mutual-funds...

Hope we could reply to your query in details.

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Thanks for writing to Advisorkhoj.

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