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Yes, NRIs can invest in mutual funds in India by adhering to the regulations of FEMA (Foreign Exchange Management Act).
According to the updated FEMA (Foreign Exchange Management Act) guidelines, you must be classified as an NRI to invest in Indian mutual funds. Make sure that your residency status is updated to NRI to stay compliant with the Indian regulations.
NRIs need to have either a NRE (Non-Resident External) or NRO (Non-Resident Ordinary) rupee-denominated account to invest in mutual funds. They are not allowed to make investments in foreign currencies.
Completing fresh KYC is necessary when your status changes to NRI. The KYC process is important to verify your identity, and SEBI-registered KYC registration agencies (KRAs) will store your information. You can submit the required KYC documents either using a mutual fund intermediary or directly through an Asset Management Company (AMC).
NRIs get various mutual fund options to invest in, including equity, debt, and hybrid. They can make investments either online or through an appointed power of attorney (PoA).