MUTUAL FUNDS

Odoo CMS - a big picture

Why Moashk ?

Moashk , Since 2006, is a pioneer of introducing complete Indian Mutual Fund Platform to NRIs in Kuwait. We are associated with All Asset Management Companies and are complied by AMFI.

Contact us »

MUTUAL FUNDS FOR NRIs


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 office of Moashk in Kuwait, We will verify your documents for processing.

As an NRI, you can invest in mutual funds on non – repatriable basis or on repatriable basis. If it is non repatriable basis, you can invest from NRO account. Otherwise you have to use NRE account.

What are the Documents required for KYC of NRI Investors:-

  1. KYC application form

  2. Pan Card

  3. Passport

  4. Address proof (both Indian and overseas)

  5. 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 U.S.A and Canada. AMCs like HDFC, ICICI, Reliance, DSP Blackrock are currently not taking investments from US and Canadian nationals.

However Resident of 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 suitable for your need and objective?

List of AMCs accepting US/ Canada NRI Investments :

  1. Axis Mutual Fund

  2. SBI Mutual Fund

  3. UTI Mutual Fund

  4. L&T Mutual Fund

  5. Sundaram Mutual Fund

  6. Birla Sun Life Mutual Fund

  7. DSP Blackrock Mutual Fund

  8. ICICI Prudential Mutual Fund

  9. Reliance Mutual Fund

  10. HDFC Mutual Fund (only USA)

  11. Kotak Mutual Fund

  12. 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:

  • 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.

  • 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.

  • 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.

  • Diversification By owning shares in a mutual fund instead of owning individual stocks or bonds, your risk is spread out.

  • 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.

  • Liquidity Just like an individual stock, a mutual fund allows you to request that your shares be converted into cash at any time.

  • 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?

  • In the simplest sense – a desire to be rich, a desire to have control over the aspects that effect our financial life, a desire to command respect with the control, our money path and having more than sufficient funds to cater all are needs in 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
Less than 3 Years
Taxable at normal rates of taxes applicable to the assesse
34.32%^
Units of an Equity Oriented Scheme
Less than 1 Year
15% + Surcharge as applicable + 4% Cess
15% + 4% Cess

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
More than 3 Years
20% with indexation + Surcharge as applicable + 4% Cess
22.88%
Unlisted Units of a Non-Equity Oriented Scheme
More than 3 Years
10% without indexation + Surcharge as applicable + 4% Cess
11.44%
Units of an Equity Oriented Scheme
More than 1 Year
10% without indexation + Surcharge as applicable + 4% Cess (grandfathering till 31st Jan 2018)
11.44%
PS. TDS is applicable to NRIs at the time of Redemption, Switch, STP and SWP of the units.

INVESTMENTS & SERVICES