MUTUAL FUND
Why Moashk?
MUTUAL FUNDS FOR NRI
NRIs can invest in mutual funds without any restrictions (except for US & Canada-based NRIs*). As a first step, you should update your KYC as an NRI investor. If you are already an investor, you have to change your KYC with NRI status. If you are new to mutual funds, you can submit the following documents at the office of Moashk in Kuwait, We will verify your documents for processing.
As an NRI, you can invest in mutual funds on non – a repatriable basis or on a repatriable basis. If it is non a repatriable basis, you can invest from an NRO account. Otherwise, you have to use an NRE account.
What are the Documents required for the KYC of NRI Investors:-
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KYC application form
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Pan Card
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Passport
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Address proof (both Indian and overseas)
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Photograph
Can US/ Canada NRIs invest in Mutual Funds?
Non-resident Indians can invest in Mutual Funds in India. However, there are certain restrictions for citizens of the U.S.A. and Canada. AMCs like HDFC, ICICI, Reliance, and DSP Blackrock are currently not taking investments from US and Canadian nationals.
However, Residents of the Middle East can Freely Invest in Mutual Funds in India
There are more than 200+scheme in India, how will you find which is the most suitable for your need and objective?
List of AMCs accepting US/ Canada NRI Investments :
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Axis Mutual Fund
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SBI Mutual Fund
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UTI Mutual Fund
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L&T Mutual Fund
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Sundaram Mutual Fund
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Birla Sun Life Mutual Fund
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DSP Blackrock Mutual Fund
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ICICI Prudential Mutual Fund
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Reliance Mutual Fund
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HDFC Mutual Fund (only USA)
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Kotak Mutual Fund
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IDFC Mutual Fund
Are FATCA Details Mandatory?
For all NRI Mutual Fund Investments, FATCA Details are mandatory which include TAX Identification Number Overseas.
What are Mutual Funds?
A mutual fund is simply a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. As you probably know, mutual funds have become extremely popular over the last 20 years. What was once just another obscure financial instrument is now a part of our daily lives. In fact, to many people, investing means buying mutual funds. After all, it’s common knowledge that investing in mutual funds is (or at least should be) better than simply letting your cash waste away in a savings account.
Definition:
A mutual fund is nothing more than a collection of stocks and/or bonds. You can make money from a mutual fund in three ways:
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Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly all income it receives over the year to fund owners in the form of a distribution.
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If the fund sells securities that have increased in price, the fund has a capital Gain. Most funds also pass on these gains to investors in a distribution.
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If fund holdings increase in price but are not sold by the fund manager, the fund’s shares increase in price. You can then sell your mutual fund shares for a profit
Advantages of Mutual Fund:
Professional Management A mutual fund is a relatively inexpensive way for a small investor to get a full-time manager to make and monitor investments.
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Diversification By owning shares in a mutual fund instead of owning individual stocks or bonds, your risk is spread out.
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Economies of Scale Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower than you as an individual would pay.
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Liquidity Just like an individual stock, a mutual fund allows you to request that your shares be converted into cash at any time.
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Simplicity Buying a mutual fund is easy! Most Companies have their own line of mutual funds, and the minimum investment is small.
Creating wealth through mutual funds:
What is wealth creation?
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In the simplest sense – a desire to be rich, a desire to have control over the aspects that affect our financial life, a desire to command respect with control, our money path, and having more than sufficient funds to cater to all our needs in the future. Through mutual funds, we can create wealth and also forgo the market risk factor by a technique called averaging which can be achieved through Systematic Investment Plan (SIP) and Systematic Transfer Plan (STP).
MUTUAL FUND TAXATION
Short-Term Capital Gain
| Category of Units | Holding Period | Tax Rates under the Act | TDS Rates under the Act for NRIs |
| Units of Non-equity Oriented Scheme
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Less than 3 Years
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Taxable at normal rates of taxes applicable to the assessee
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34.32%^
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| Units of an Equity-Oriented Scheme
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Less than 1 Year
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15% + Surcharge as applicable + 4% Cess
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15% + 4% Cess
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Long-Term Capital Gain
| Category of Units | Holding Period | Tax Rates under the Act | TDS Rates under the Act for NRIs |
| Listed Units of a Non-Equity Oriented Scheme
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More than 3 Years
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20% with indexation + Surcharge as applicable + 4% Cess
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22.88%
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| Unlisted Units of a Non-Equity-Oriented Scheme
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More than 3 Years
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10% without indexation + Surcharge as applicable + 4% Cess
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11.44%
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| Units of an Equity-Oriented Scheme
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More than 1 Year
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10% without indexation + Surcharge as applicable + 4% Cess (grandfathering till 31st Jan 2018)
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11.44%
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PS. TDS is applicable to NRIs at the time of Redemption, Switch, STP, and SWP of the units.
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