Which is the best for NRIs: SIP, SWP, or STP?

Choosing SIP is ideal for NRIs in the accumulation phase, using rupee-cost averaging from NRE/NRO accounts for long-term goals like retirement or education.

Each SIP unit is taxed separately on redemption:

• Equity LTCG (Long-Term Capital Gains) is taxed at 12.5% on gains exceeding Rs. 1.25 lakh per financial year.
• STCG (Short-Term Capital Gains) is taxed at 20%, and debt is taxed as per the slab.

Yes, SWP suits NRIs who need a monthly rupee cash flow, such as for family support. Only gains are taxed according to the withdrawal via FIFO, which is more efficient than fixed deposits.

You should choose STP (Systematic Transfer Plan) over SIP (Systematic Investment Plan) when you have a large lump sum amount to invest, like proceeds from a property sale. It involves parking the amount in a debt fund and gradually transferring to equity to prevent market timing risk.

Yes, NRIs residing in the US/Canada may face specific restrictions on using SIP/SWP/STP due to compliance requirements under the FATCA and Canadian regulations. Check fund house policy and use compliant platforms or NRE routing.

AMC deducts TDS on capital gains at redemption/transfer (30% STCG equity 20% LTCG). Acquire Form 16A: reconcile in ITR-2 for refunds or claim DTAA credits.

Yes, NRIs can combine SIP, STP, and SWP strategies. SIP for new money, STP for lump sums, and SWP for income. This approach maximizes returns while reducing NRI tax drag.

An NRI (Non-Resident Indian) should use an NRE (Non-Resident External) for repatriable foreign income (tax-free interest) and an NRO (Non-Resident Ordinary) for Indian income.

Yes, STP can be tax-efficient for NRIs moving from debt to equity.