FREQUENTLY ASKED QUESTIONS

WHAT IS ADVICE SENSE?
Advice Sense is a Financial Consulting firm which offers services for Financial products like Mutual Funds, Insurance, Stocks, other Investment products.
HOW CAN I REGISTER ON WEBSITE?
Click on Contact Us available in the menu bar. Enter the required details in the fields. We will receive your information. Our team will get in touch with you and will create an account for you. You will receive a link in your email to setup your password. Your email id will be your login id.
HOW CAN I RETRIEVE MY PASSWORD?
Click on Login link on the website. On the bottom of the screen you would find the FORGOT PASSWORD link. On this page you would need to enter your registered and valid email id. A link would be sent to the registered email id. You need to click on the same and provide a new password.
WHAT ALL INFORMATION CAN I ENTER IN THE PLATFORM
Our platform is a comprehensive platform where you can enter all your assets such as Bank balance, MFs, Stocks, Insurances, Property, Gold and other assets and your liabilities such as bills payable, loans, premiums payables etc. You can view your complete net worth and track with your cash flows.
HOW DO I GET HEP ANYWHERE I STUCK?
Click on ASK YOUR ADVISOR tab on the dashboard, towards the right hand side. You may raise any query which goes directly to your Advisor and they can revert back to you.
WHAT ARE MUTUAL FUNDS?
A mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. Investing in a Mutual Fund can be a lot easier than buying and selling individual stocks and bonds on your own. Investors can sell their holdings when they want.
WHY ARE MUTUAL FUNDS POPULAR AMONG INVESTORS?
It is important for investors to find the right vehicle for deployment of their savings as this money comes in handy in time of need or during retirement. Hence mutual funds are popular as the dividend earned on them is tax free in the hands of investor and they are a relatively safe option for investment. One of the main advantages of mutual funds is that they give small investors access to professionally managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult (if not impossible) to create with a small amount of capital. Each shareholder participates proportionally in the gain or loss of the fund. 
Adequate amount of liquidity is there as you can sell mutual funds at any given point of time.
WHY SHOULD I INVEST IN A MUTUAL FUND ?
Diversification in mutual funds reduces the risk of investment and gives better results in the longer run. You can also diversify across three major asset classes as you can invest in debt, equity and also in gold through mutual fund schemes. Mutual funds generally buy and sell securities in large volumes which allow investors to benefit from lower trading costs. The smallest investor can get started on mutual funds because of the minimal investment requirements. You can invest with a minimum of Rs.500 in a Systematic Investment Plan on a regular basis. 

The convenience of mutual funds is undeniable and is surely one of the main reasons investors choose them to provide the equity portion of their portfolio, rather than buying individual shares themselves. Determining a portfolio's asset allocation, researching individual stocks to find companies well positioned for growth as well as keeping an eye on the markets is all very time consuming. People devote entire careers to the stock market, and many still end up losing on their investments. Though investing in a mutual fund is certainly no guarantee that your investments will increase in value over time, it's a way to avoid some of the complicated decision-making involved in investing in stocks.
WHICH ARE THE BEST MUTUAL FUNDS TO INVEST IN?
There is nothing like a "best" mutual fund. It totally depends on the investor's financial goals and risk appetite. Someone maybe looking for a high return over short term and somebody else might be looking for safety of the capital investment. Once individual preferences are scientifically mapped, one has to look for consistency of returns, portfolio construct, risk-reward ratios, liquidity and various other parameters to decide on the "winner" amongst the numerous schemes available. 
HOW DO I PICK OUT THE BEST MUTUAL FUNDS?
You need to first identify your goals and risk tolerance. Also the issue of time horizon must be addressed. As with all investments, investors should research a fund's past results. We are at the forefront of providing advisory services based on scientific models which ensures that there is no human bias involved in scheme selection.
IS IT COMPULSORY TO BE KYC COMPLIANT FOR REGISTERING for Mutual funds?
To successfully transact, one needs to be KYC verified. We will check your KYC status basis your PAN details and if verified, we will create your account on our platform. 
For clients, where KYC is not verified, we will help you with a pre-filled KYC form which you can courier to our correspondence address and we shall help you get KYC verified. Please note that as per norms on KYC, we might have to do IPV (In-Person verification) once to establish the credentials mentioned on KYC form. 
Alternatively, you can submit this form to your nearest RTA (CAMS or KARVY) or any other PoS for KYC.
CAN I OPEN MULTIPLE ACCOUNTS?
No, you can have only one account which will be linked to your unique PAN number. However, you can open multiple accounts in the name of your family members and invest in their respective names. All these accounts can be linked together for consolidated family viewing. Also, you can open multiple accounts with different holding patterns (joint names)
HOW SAFE IS MY ACCOUNT?
We have set our system and platform at the highest standard of encryption and data security. SSL4 encryption and Bank grade security will ensure that all your transactions are routed seamlessly, safely and in the most secure manner. Your trust is our reward! 
Also, your funds are directly held with the fund houses. If ever, you wish to transact through them directly you can do so. You can even redeem directly by approaching any of the fund houses and the proceeds will be credited to your registered bank account. We are just a platform to enable you to transact smoothly. We have no lien or right over your funds/amount whatsoever.
CAN I ADD JOINT HOLDERS TO MY INVESTMENT ACCOUNT?
Yes, joint holders can be added to the investment account. As per norms, maximum three holders are permitted per folio. 
Our platform also enables consolidated family viewing in case of multiple accounts with different holding patterns.
CAN A MINOR OPEN AN ACCOUNT ?
Yes, a minor account can be opened provided the guardian is an adult with valid PAN and is KYC compliant.
CAN I NOMINATE A MINOR AS MY NOMINEE?
Yes, a minor can be nominated provided the guardian details are also provided in the nomination form.
IS KYC OF A NOMINEE MANDATORY?
No, the KYC of the nominee is not mandatory. However, details such as address etc will be required to be filled in the nomination form.
CAN I ADD SECOND / THIRD HOLDER IN MUTUAL FUND FOLIO?
Once a particular folio has been created, you cannot add or delete holders in it. To have a separate holding pattern, you will have to open a different account with new holder and invest through a new folio.
IF A NON RESIDENT INDIAN (NRI) INVESTS IN MUTUAL FUNDS AND HE BECOMES RESIDENT LATER, WHAT WILL HAPPEN TO HIS MUTUAL FUND INVESTMENTS MADE PRIOR TO HIS RETURN TO INDIA? WILL IT ATTRACT INCOME TAX?
On becoming a resident Indian, you must inform your banks and mutual funds about your change of status within a reasonable time. You may be able to continue holding your mutual funds after informing the fund house about your change of status. Your bank mandates will have to be changed from NRO/NRE accounts to domestic savings account. 
Change of Status from NR to domestic or vice versa, does not entail any tax liability on your existing holdings, if they are held as is.
WHAT ABOUT MINOR BECOMING MAJOR?
Upon a Minor attaining the age of majority (i.e. on completing 18 years of age), he/she must be KYC Compliant and have KYC Acknowledgement of their own. The same should be informed to the Mutual Fund where he/she holds an investment, along with other details such as the Bank Details, Signature, etc as per the present requirements of such Mutual Fund.
ARE THERE ANY SPECIAL REQUIREMENTS FOR AN NRI?
Yes. In addition to the certified true copy of the passport, certified true copy of the overseas address and permanent address will also be required. If any of the documents (including attestations/ certifications) towards proof of identity or address is in a foreign language, they have to be translated to English for submission. The documents can be attested, by the Consulate office or overseas branches of scheduled commercial banks registered in India.
HOW CAN I INVEST IN MUTUAL FUNDS?
You can invest in any mutual fund scheme either online (through online investment facility provided by AMCs or online portals) or offline (through any financial intermediary or directly walking in any branch of the Mutual Fund Company). Financial intermediaries can be a bank, brokerage house or third party intermediaries or IFAs. Whether you decide to invest online or offline, you will require the following documents: Photograph, PAN card, Name and Address proof, Bank Account Details and KYC Compliance.
WHAT IS THE DIFFERENCE BETWEEN INDEX FUNDS AND MUTUAL FUNDS?
Index funds are a type of mutual fund. Mutual funds may be actively or passively managed. An actively managed mutual fund attempts to apply discretion to choose a basket of stocks that collectively outperform the market or their relevant benchmark whereas a passively managed fund simply matches the market index like the NIFTY or Sensex.
WHAT ARE THE MUTUAL FUND OPTIONS AVAILABLE IN INDIA?
Let us have a look at some important mutual fund schemes under the following three categories based on maturity period of investment: 

I. Open-Ended - This scheme allows investors to buy or sell units at any point in time. This does not have a fixed maturity date. 

1. Debt/ Income - In a debt/income scheme, a major part of the investable fund are channelized towards debentures, government securities, and other debt instruments. Although capital appreciation is low (compared to the equity mutual funds), this is a relatively low risk-low return investment avenue which is ideal for investors seeking a steady income. 

2. Money Market/ Liquid - This is ideal for investors looking to utilize their surplus funds in short term instruments while awaiting better options. These schemes invest in short-term debt instruments and seek to provide reasonable returns for the investors. 

3. Equity/ Growth - Equities are a popular mutual fund category amongst retail investors. Although it could be a high-risk investment in the short term, investors can expect capital appreciation in the long run. If you are at your prime earning stage and looking for long-term benefits, equity schemes could be an ideal investment.

3. i. Index Scheme - Index schemes is a widely popular concept. These follow a passive investment strategy where your investments replicate the movements of benchmark indices like Nifty, Sensex, etc.

3. ii. Sectoral Scheme - Sectoral funds are invested in a specific sector like infrastructure, IT, pharmaceuticals, etc. or segments of the capital market like large caps, mid caps, etc. This scheme provides a relatively high risk-high return opportunity within the equity space.

3. iii. Tax Saving - As the name suggests, this scheme offers tax benefits to its investors. The funds are invested in equities thereby offering long-term growth opportunities. Tax saving mutual funds (called Equity Linked Savings Schemes) has a 3-year lock-in period. 

4. Balanced - This scheme allows investors to enjoy growth and income at regular intervals. Funds are invested in both equities and fixed income securities; the proportion is pre-determined and disclosed in the scheme related offer document. These are ideal for the cautiously aggressive investors.

II. Closed-Ended - In India, this type of scheme has a stipulated maturity period and investors can invest only during the initial launch period known as the NFO (New Fund Offer) period.Please refer to the "NFO corner" under Mutual Fund section on our website to view the current offerings now.

1. Capital Protection Oriented schemes - The primary objective of this scheme is to safeguard the principal amount while trying to deliver reasonable returns. These invest in high-quality fixed income securities with marginal exposure to equities. Debt instruments mature along with the maturity period of the scheme to avoid interest-rate risk.

2. Fixed Maturity Plans (FMPs) - FMPs, as the name suggests, are mutual fund schemes with a defined maturity period. These schemes normally comprise of debt instruments which mature in line with the maturity of the scheme, thereby earning through the interest component (also called coupons) of the securities in the portfolio. FMPs are normally passively managed, i.e. there is no active trading of debt instruments in the portfolio. The expenses which are charged to the scheme are hence, generally lower than actively managed schemes.

III. Interval Plans - Operating as a combination of open and closed ended schemes, it allows investors to trade units at pre-defined intervals.
WHAT ARE MONEY MARKET FUNDS?
A money market fund`s portfolio is comprised of short-term (less than one year) securities representing high-quality, liquid debt and monetary instruments.
CAN I INVEST IN INDEX FUNDS AND OTHER MUTUAL FUNDS SIMULTANEOUSLY?
Yes you can invest in both the funds simultaneously as index funds are a subset of mutual funds.
CAN I TRANSACT ON A HOLIDAY?
Yes, transactions can be placed on our website even on a holiday. Though the NAV applicable will be of the next working day (market day). For eg., if the request is placed on a Sunday, the NAV applicable will be of Monday (or the next business day).
I AM AN NRI INVESTOR. CAN I REGISTER AND BUY MFS?
Yes, NRIs can seamlessly transact through our platform. NR clients can use either NRE or NRO accounts for making purchases. Residents of USA & Canada are not allowed to transact.
IS THERE A DIFFERENCE IN THE NAVS BETWEEN THE DIRECT AND THE REGULAR SCHEMES?
Yes, there is a difference in the NAVs because of difference in the expense ratios of regular vs. direct schemes. NAV of direct plans is higher than the regular plans because of the higher appreciation that these schemes have been giving. Direct plans have less expense raito as compared to regular plans and hence, the returns are higher. This is why our investors save money, as we route investments ONLY in Direct Code of schemes. 
This might sound confusing, as higher NAV will lead to lower units on purchase. However, it is not whether you are buying a particular asset at Rs. 100 or Rs. 102 - it is the appreciation on this capital invested, which will make an impact on your portfolio. To understand, take an example: Client A invests 10000 Rs. in HDFC Equity Fund - Regular Plan at an NAV of 473 Rs and Client B invest similar amount in same scheme but in the Direct Plan at an NAV of 486 Rs. 
Client A will have 21.41 units and client B will have 20.57 Units of the same scheme. Over a one year period, assuming core portfolio of the scheme delivers 15% return and the expense ratio for regular plan is 2.25% and direct plan is 1.4%. Approximate calculations show that: 
Client A will make = 1275 Rs as return and Client B will make 1360 Rs. By virtue of investing in Direct plans. Because of higher returns, NAV of direct plan will appreciate faster than regular plan and hence, will always be higher than the regular plan of same scheme. 
HOW DO I KNOW IF THE SCHEME / PLAN I HAVE INVESTED IN IS DIRECT PLAN OR REGULAR PLAN?
This is very simple. You need to look for the word "direct" in the name of the scheme itself. Investors also need to understand that all online investment platforms may not be offering direct schemes. Most of the distributors, banks, independent advisors, private bankers and even online platforms offer only regular code and hence, you will not find the word "Direct" in your holdings.
WHAT IS THE NAV I RECEIVE WHEN I TRANSACT?
You get the same business day`s NAV for all transactions executed before the cut off time (as prescribed on our website) for that particular scheme. Next business day`s NAV is applicable for all transactions done after cut off time.
WHAT IS "CUT-OFF TIME"?
The cutoff prescribed by Fund Houses for same day NAV for equity and debt schemes is 3:00 pm. For liquid schemes the cutoff time is 2:00 pm (day to be read and understood as business day).
WILL THE NAV OF MY PORTFOLIOS GET UPDATED ON DAILY BASIS?
Yes, it is updated on a daily basis.
WHAT IS FATCA DECLARATION?
The provisions commonly known as the Foreign Account Tax Compliance Act (FATCA) became law in March 2010. 

FATCA targets tax non-compliance by U.S. taxpayers with foreign accounts .

FATCA focuses on reporting: 

By U.S. taxpayers about certain foreign financial accounts and offshore assets.

By foreign financial institutions about financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers hold a substantial ownership interest.

The objective of FATCA is the reporting of foreign financial assets; withholding is the cost of not reporting. 

It is a regulatory requirement wherein every mutual funds investor now mandatorily needs to provide the information and documentation towards compliance with tax information sharing laws, such as FATCA/CRS. For your convenience, you can submit the same through online mode for updates across participating funds. FATCA declaration is a mandatory one-time requirement for investments in Mutual Fund schemes. 
WHO IS A NON-RESIDENT INDIAN (NRI)?
A person who has been outside India for 182 days or more during a financial year is a non resident Indian.
NRIs can continue to enjoy non-resident status in India if their presence in the country is more than 60 days but less than 182 days in a financial year, even if their stay in India during the past four financial years is 365 days or more.
A person, who has been deputed overseas for more than 6 months, also qualifies for non-resident status.
CAN NRIS INVEST IN DOMESTIC MUTUAL FUNDS?
Yes, NRIs can invest in units of domestic mutual funds.
HOW CAN NRIS INVEST IN MUTUAL FUNDS IN INDIA?
All investments made by NRIs have to be in local currency. Mutual funds in India are not allowed to accept investments in foreign currency. For investing in Indian mutual funds, therefore, an NRI needs to open one of the three bank accounts- Non-resident external rupee (NRE) account, non-resident ordinary rupee (NRO) account or foreign currency non-resident account (FCNR)-with an Indian bank. The amount that is to be invested can be directly debited from an NRE/NRO account or received by inward remittances through normal banking channels.
WHAT IS THE KYC REQUIREMENT FOR NRIS?
Submission of passport copy is mandatory. Relevant pages of passport having name, photo, date of birth and address should be submitted. Overseas address is mandatory. Either the permanent or correspondence address must be an overseas address. If the details are in a foreign language, translation is to be done in English and to be self attested.

WHAT IS A PORTFOLIO INVESTMENT SCHEME (PIS)?
Portfolio Investment Scheme (PIS) is a scheme of RBI under which NRIs can purchase/sell shares/convertible debentures of Indian companies on Stock Exchanges under Portfolio Investment Scheme. For this purpose, the NRI/PIO has to apply to a designated branch of a bank, which deals in Portfolio Investment. All sale/purchase transactions are to be routed through the designated branch.
WHO IS A PERSON OF INDIAN ORIGIN?
For the purposes of investments in shares/securities in India, person of Indian origin means a citizen of any country other than Pakistan or Bangladesh, if 
a) He at any time, held an Indian passport; or
b) He or either of his parents for any of his grandparents was a citizen of India by virtue of the constitution of India or Citizenship Act, 1955; or 
c) The person is a spouse of an Indian citizen or a person referred to in clause (a) or (b). 
WHO IS AN OVERSEAS CITIZEN OF INDIA (OCI)?
Under OCI Scheme, government of India decided to grant overseas citizenship of India (OCI) commonly known as "dual citizenship". A foreign national, who was eligible to become a citizen of India on 26.01.1950 or was a citizen of India on or at any time after 26.01.1950 or belonged to a territory that became part of India after 15.08.1947 and his/her children and grand children, provided his/her country of citizenship allows dual citizenship in some form or other under the local laws, is eligible for registration as an Overseas Citizen of India (OCI). Minor children of such person are also eligible for OCI. However, if the applicant had ever been a citizen of Pakistan or Bangladesh, he/she will not be eligible for OCI.
IS IT MANDATORY FOR A CLIENT TO PROVIDE LOCAL (INDIAN) ADDRESS?
At the time of client registration, client needs to provide his/her foreign address along with documentary proof of the same. If a client so desires, local address can be maintained as correspondence address. In such scenario they are required to provide documentary evidence in support of local address also.
WHAT ARE NRE AND NRO ACCOUNTS AND WHAT IS THE DIFFERENCE BETWEEN THEM?
A Non-Resident Indian is often faced with the situation of maintaining a Rupee account in India. Primarily there are two reasons for opening such account: NRI wants to repatriate overseas earned money back to India and/or NRI wants to keep India based earnings in India. NRI has the option of opening a Non Resident Rupee (NRE) account and/or a Non Resident Ordinary Rupee (NRO) account. An NRO account can also be opened by a Person of Indian Origin (PIO) and an Overseas citizen of India (OCI). Similarities between NRE and NRO accounts: Both accounts can be opened as Savings as well as current accounts and are Indian Rupee accounts. The Differences between NRE and NRO accounts:
Repatriation: NRE account is freely repatriable (Principal and interest earned) while the NRO account has restricted repatriability i.e. permitted remittance allowed from NRO is up to USD 1 million net of applicable taxes in a financial year after giving undertaking along with a certificate from a chartered accountant.
Tax Treatment: NRE account is Tax free (no Income tax, wealth tax and gift tax) in India. On the other hand the interest earned in NRO account and credit balances are subject to respective income tax bracket and are also subject to applicable wealth and gift tax. 
Deposit of Rupee funds generated in India: If an NRI/PIO/OCI is earning income originating in India (such as salary, rent, dividends etc.) he/she is only allowed to deposit it in NRO account. Deposit of such earnings is not permitted in NRE account. 
Joint Holding: NRE account can be jointly held with another NRI but not with resident Indian. On the other hand NRO account can be held with NRI as well as resident Indian (close relative) as defined under Section 6 of the Companies Act 1956. 
Choose NRE accounts if you: (Primary reason) want to park your overseas earnings remitted to India converted to Indian Rupees; want to maintain savings in Rupee but keep them liquid; want to make a joint account with another NRI; want Rupee savings to be freely repatriable.
Choose NRO account if you: (Primary reason) want to park India based earnings in Rupees in India; want account to deposit income earned in India such as rent, dividends etc; want to open account with resident Indian (close relative).
WHAT IS FCNR ACCOUNT?
An FCNR (Foreign Currency Non Resident) account is a term deposit account that can be maintained by NRIs and PIOs in foreign currency. Thus, FCNRs are not savings accounts but fixed deposit accounts.
CAN TWO SEPARATE ACCOUNTS (NRE AND NRO) BE OPENED BY NRI SIMULTANEOUSLY?
Yes, clients can have both NRE & NRO accounts simultaneously.
CAN AN NRI MAINTAIN MULTIPLE ACCOUNTS WITH DIFFERENT BANKS IN INDIA, SIMULTANEOUSLY?
Yes, there is no prohibition to open and maintain multiple accounts.
CAN AN NRI OPEN JOINT ACCOUNTS WITH ONE OR MORE NRIS?
Yes, NRE accounts can be jointly held with other NRIs.
CAN AN NRI OPEN JOINT ACCOUNTS WITH RESIDENTS?
Yes, NRIs can open Joint NRO Account with Resident Close Relative as defined in Companies Act 1956.
SHOULD ALL THE NRI DESIROUS OF OPENING JOINT ACCOUNTS BE RESIDING IN THE SAME COUNTRY?
No, they can be residing in different countries, also.
CAN NRI ACCOUNTS BE OPENED FROM ABROAD ALSO?
Yes. An NRI can also open accounts from abroad by sending duly filled and signed AOF(account opening form) duly attested by Indian Consulate along with attested copies of passport and Visa, and other mandatory documents.
CAN AN NRI OPEN AN ACCOUNT WITH ZERO BALANCE?
Yes, an individual taking up an employment, business, vocation etc. can complete the account opening formalities prior to going abroad with zero balance. Subsequently, he must remit funds to make the account operative within a reasonable time, where after only cheque book will be issued.
CAN AN NRI GIVE POWER OF ATTORNEY TO A RESIDENT TO OPERATE HIS ACCOUNTS AND FOR MAKING INVESTMENTS ON HIS BEHALF?
Yes, an NRI can appoint a Power of Attorney holder to make local payment from his NRE / NRO accounts and also investments on his / her behalf.
WHAT ARE THE RESTRICTIONS IMPOSED ON THE POWER OF ATTORNEY?
A Power of Attorney holder cannot do the following acts.
Open and close NRI accounts in the name of NRI.
Repatriate funds from a/c in the form of DD/TT etc. unless specified in P.A.
Give gifts.
Transfer funds to NRE accounts other than that of Principal.
Cannot raise loans/execute documents on behalf of NRI.
Cannot tender Foreign Currency (FC)/Foreign Currency Traveller Cheques (FCTC).
HOW MUCH FOREIGN CURRENCY (FC) CAN AN NRI BRING ALONG WITH HIM ON HIS/ HER VISIT TO INDIA, WITHOUT CUSTOM DECLARATION FORM (CDF)?
An individual NRI can bring USD 10,000/- or equivalent (in the form of FCTC /FC) of which maximum USD 5000/-can be in the form of currency notes without declaring the same in CDF. Any amount in excess of the above limits needs to be declared in CDF to the customs. The balance amount or even the entire amount can be in the form of TCs.
CAN AN NRI DEPOSIT LOCAL FUNDS INTO NRE ACCOUNT?
No, only credits coming from abroad in the form of DDs/TTs/MTs/FCs/TCs etc. can be deposited in NRE a/c. Local money has to be credited to NRO account of an NRI.
IS INTEREST EARNED ON NRE/NRNR/FCNR/NRO A/CS. TAXABLE?
No tax is applicable to interest earned on NRE/FCNR & NRNR a/cs. However, interest earned on NRO a/cs is subject to TDS as per extant guidelines
WHAT IS THE RATE OF TDS ON NRO ACCOUNTS?
Banks have obligation under Income Tax Act to deduct tax at source in respect of interest income of Non Resident Indians. The rate of TDS is specified in the Finance Act, every year. Accordingly as on date TDS applicability is as under-
Interest earned upto Rs. 10 lacs TDS@ 30.90%
Interest earned beyond Rs. 10 lacs TDS @ 33.99%
Before you make your investment in Indian mutual funds, being an NRI, you need to know that the gains that you make on your mutual fund investments are subject to tax. You need to be aware of what tax rate will be applicable on short term as well as long term capitals gains on your investment in equity and non-equity mutual funds.
IS INTEREST ON NRO ACCOUNT REPATRIABLE?
Yes, interest earned on NRO a/cs. can be repatriated or credited to NRE/FCNR accounts subject to payment of tax.
IS NOMINATION PERMITTED IN NRI A/CS?
Yes, NRIs can nominate either a resident or a non-resident as Nominee. However, only one nominee is permitted per account. Nominee can also be a minor in which case, guardian has to be appointed to receive payment on minor`s behalf.
WHAT ARE THE FORMALITIES IN DEATH CLAIM SETTLEMENT?
If the nominee, either resident or non-resident, plans to utilize the funds locally, payment will be made in Indian Rupees. If, however the nominee is an NRI and desires to repatriate the amount, the nominee will have to comply with certain formalities as prescribed by respective banks.
CAN NRI INVEST IN IMMOVABLE PROPERTIES ON REPATRIATION BASIS?
Yes, Repatriation benefit is available for 2 residential houses. The purchase should be out of funds remitted from aboard or out of NRE/FCNR a/cs, in accordance with the provisions of FERA/FEMA.
WHAT HAPPENS TO ACCOUNTS OF THE NRI ON HIS/HER RETURN TO INDIA?
A returning Indian`s NRE/FCNR accounts will be designated as Resident account. However, they will continue to run till maturity at the contracted rate of interest.
IS A NRI SUBJECT TO TAX AFTER RETURNING TO INDIA?
Yes, NRIs earnings are subject to tax laws of the country.
CAN A RETURNING INDIAN MAINTAIN FOREIGN CURRENCY ACCOUNT?
Yes, the returning NRI can get his NRE, FCNR a/cs converted into RFC (Resident Foreign Currency) a/cs on maturity.
WHO CAN OPEN RFC ACCOUNT?
A returning NRI who was resident outside India earlier and are returning now for permanent stay are permitted to open RFC account.
WHAT ARE THE BENEFITS OF RFC ACCOUNTS?
The benefits of RFC accounts are: In case of conversion from FCNR(B) accounts there is no exchange loss. Balance in RFC account can be used for local payments and can be remitted abroad for all bonafide purposes. In case the NRI was residing abroad continuously for a period of 9 years out of previous 10 years, then there will be no tax on interest earned on RFC accounts for next 2 years. In the event of the returning Indian regaining NRI status, the balances in RFC account can be reconverted into NRE /FCNR (B) deposits.
CAN AN NRI TRANSFER FUNDS BETWEEN NRE ACCOUNTS?
Yes, the funds can be transferred between NRE or FCNR accounts of an account holder and also between NRE or FCNR accounts of two different NRIs, ie, the funds lying in NRE or FCNR accounts of an NRI can be freely transferred to NRE or FCNR account of any other NRI.
ARE NRE OR NRO ACCOUNT HOLDERS ELIGIBLE FOR LOANS OR OVERDRAFTS AGAINST THEIR FIXED DEPOSIT/INVESTMENTS?
The NRO or NRE account holders are eligible to apply for loans or overdrafts against their fixed deposit holdings and Investments.
WHAT FOREIGN CURRENCIES CAN ONE MAINTAIN IN FCNR ACCOUNTS?
Prior to 2011, FCNR deposits were allowed to be maintained in six currencies: US dollar, Pound Sterling (GBP), Euro, Japanese Yen, Australian dollar and Canadian dollar. However, in October 2011, the RBI decided that authorised dealer banks in India may be permitted to accept FCNR deposits in any permitted currency. "Permitted currency" for this purpose would mean a foreign currency which is freely convertible and popularly include Danish Krone, Swiss Frank and Swedish Krona among others.
HOW CAN ONE TRANSFER FUNDS TO FCNR ACCOUNTS?
The funds in an FCNR account must necessarily come from your overseas funds. There are several ways in which you can open an FCNR account.
You can transfer funds from your overseas bank account directly to open an FCNR account. You can do this either as a wire transfer or a cheque transaction.
You can transfer funds from an existing NRE account.
You can open an FCNR account using foreign currency notes or travelers cheques when you visit India.
ARE BALANCES IN THE FCNR ACCOUNTS FREELY REPATRIABLE?
Yes, balances in FCNR can be freely repatriated outside India.
CAN FUNDS IN THE FCNR ACCOUNT BE USED FOR LOCAL INDIA PAYMENTS?
Yes, you can use the balance in FCNR account for making local payments in India. 
However, as FCNR can be maintained only as term deposits, it would be more convenient to make payments after transferring the balance to NRE account.
CAN YOU HOLD FCNR ACCOUNTS JOINTLY?
Yes, the RBI permitted NRIs to hold FCNR accounts jointly with other NRIs or with residents who are close relatives. In this case, the resident relative can operate the account as a power of attorney holder.
IS NOMINATION FACILITY AVAILABLE?
Nomination facility is available in FCNR accounts and the nominee can be either an NRI or a resident Indian.
 The balance in FCNR deposit of a deceased NRI can be credited to an NRI nominee`s FCNR account and such funds can be freely repatriated.
CAN NRIS AVAIL LOANS AGAINST FCNR DEPOSITS?
Rupee loans and foreign currency loans can be taken in India against the security of the deposit. Banks may also give loans to resident individuals, firms or companies against collateral security of FCNR deposits.
HOW CAN NRIS/PIO REMIT SALE PROCEEDS?
In case of NRI/PIO, if the mutual funds sold were held on repatriation basis, the sale proceeds (net of taxes) may be credited to his NRE /FCNR (B)/NRO accounts of the NRI/PIO, whereas sale proceeds of non repatriable investment can be credited only to NRO accounts.
IN CASE A PERSON WHO IS RESIDENT IN INDIA BECOMES A NON-RESIDENT, WILL HE/SHE BE REQUIRED TO CHANGE THE STATUS OF HIS/HER HOLDING FROM RESIDENT TO NON-RESIDENT?
NRI can continue to hold the mutual funds which he/she had purchased as a resident Indian, even after he/she has become a non resident Indian, on a non-repatriable basis.
IN CASE A NON-RESIDENT INDIAN BECOMES A RESIDENT IN INDIA, WILL HE/SHE BE REQUIRED TO CHANGE THE STATUS OF HIS/HER HOLDING FROM NONRESIDENT TO RESIDENT?
Yes. It is the responsibility of the NRI to inform the change of status to the RTA,. Subsequently, a new account in the resident status will have to be opened, and bank mandate be moved to a resident account.
ARE NRIS PERMITTED TO INVEST IN COMMERCIAL PAPER (CP) ISSUED BY INDIAN COMPANIES?
Yes. General permission has been granted by Reserve Bank to Indian companies to issue CP to NRI individuals subject to the conditions that the amount invested will not be repatriated outside India and the CP will not be transferable.
WHAT ARE THE BENEFITS FOR NRIS TO INVEST IN INDIA?
The India Shining story is something we have all heard in the past. India has managed to slowly and steadily outperform the rest of the emerging nations, proving that as an investment destination, we need to look no further than our own home country to help us plan for and achieve our life`s financial goals. 
A Mutual Fund would be a safer bet compared to direct equity for a foreign investor who has limited expertise. For an NRI, no specific approval for investing or redeeming from mutual fund is required. We make investments completely hassle-free and paperless for all NRs. Plus our user-friendly and customized Portfolio section will make it comfortable to manage, report and consolidate investments across family members. However, residents of USA/Canada are not allowed to invest currently.
WHAT IS REPATRIABLE BASIS?
To invest on a repatriable basis, NRI investor 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 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.
WHAT IS NON REPATRIABLE BASIS?
The 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/ FII investor. Alternatively, funds may be invested by inward remittance or by debit to NRE / FCNR Account. 
No permission of Reserve Bank either by the Mutual Fund or the NRI investor is necessary.
WHAT IS THE PROOF OF TAX DEDUCTION AT SOURCE?
A TDS certificate is issued in the name of the unit holder mentioning the details of the transaction and the tax deducted. TDS certificate is commonly known as Form 16 A. This is sent by the Fund Houses directly at the correspondence address of the investor.
IS THE INDEXATION BENEFIT AVAILABLE TO NRIS?
Yes, indexation benefit is available on long term capital gains arriving out of debt funds (Please refer to current tax guidelines on this).
CAN A POA INVEST ON BEHALF OF NRI INVESTOR?
Yes a registered POA can invest in mutual funds on behalf of investor and sign documents for initial and additional purchases as well as redemptions. His signature will be verified for any transaction request.
DO I NEED TO BE PHYSICALLY PRESENT IN INDIA WHILE INVESTING?
No, investors need not be physically present in India if they want to make an investment. With our website, you can transact from anywhere across the globe.