NRI Investment Options in India
Living abroad but investing at home? This guide explains the accounts you need, the investments open to NRIs and OCIs, how repatriation works and what to check on tax, so you can build wealth in India from wherever you live.
AMFI Registered MF Distributor | ARN - 251873
Three Accounts Decide Everything
Before you invest, you need the right bank account. The account you use decides whether your money is repatriable, how it is taxed in India and which investments you can make.
As a rule, foreign earnings go into NRE or FCNR(B) accounts, and income earned in India sits in an NRO account.
NRE and FCNR(B)
For foreign earnings. Interest is tax-free in India and the money is fully repatriable.
NRO
For income earned in India, such as rent and dividends. Interest is taxable and repatriation has a yearly limit.
What Every NRI Should Know
Foreign earnings
Interest is tax-free in India and the money is fully repatriable.
Income in India
Interest is taxable, with tax deducted at source. Repatriation is capped.
Foreign-currency deposits
Held in dollars, pounds or euros, with tax-free interest in India.
NRO repatriation limit
Per financial year, after tax, with Forms 15CA and 15CB.
NRE vs NRO vs FCNR(B)
The same money behaves differently depending on the account.
| Feature | NRE | NRO | FCNR(B) |
|---|---|---|---|
| Money comes from | Foreign earnings sent from abroad | Income earned in India, such as rent, dividends or pension | Foreign currency sent from abroad |
| Currency | Indian rupees | Indian rupees | US dollars, pounds, euros and other currencies |
| Interest tax in India | Tax-free | Taxable, with tax deducted at source | Tax-free |
| Repatriation | Fully repatriable | Up to USD 1 million per financial year, after tax and paperwork | Fully repatriable |
| Best for | Investing foreign income in India | Managing your Indian income | Holding foreign-currency deposits |
Tax-free in India does not always mean tax-free in your country of residence. Rules can change.
Investment Options for NRIs and OCIs
Most Indian investments are open to NRIs and OCIs, with some rules on the route and on repatriation.
Mutual Funds & SIP
Invest in Indian mutual funds through your NRE or NRO account, with SIPs for regular investing.
Worth checking: KYC and FATCA details are needed, and some fund houses restrict investors from the US and Canada.
Explore StabilityFixed Deposits
NRE and NRO rupee deposits and FCNR(B) foreign-currency deposits, for stability and predictable returns.
Worth checking: NRE and FCNR(B) interest is tax-free in India. NRO interest is taxable, with tax deducted at source.
Explore GrowthEquity & ETFs
Buy listed shares and ETFs through a demat and trading account, with a PIS account for repatriable investing.
Worth checking: PIS rules and investment limits per company apply.
Explore IncomeBonds & NCDs
Listed bonds and corporate debentures that pay regular interest.
Worth checking: the issuer's credit rating and whether the proceeds can be repatriated.
Explore RetirementNPS
The National Pension System is open to eligible NRIs and OCIs, for long-term retirement saving.
Worth checking: eligibility, contributions and withdrawals follow PFRDA rules.
ExploreReal Estate
Residential and commercial property in India for your own use, rental income or long-term growth.
Worth checking: NRIs cannot buy agricultural land, plantation property or farmhouses, and repatriating sale proceeds has limits.
GIFT City
India-focused and global dollar funds through GIFT City, where NRIs invest without the LRS limit.
Worth checking: product eligibility, currency risk and a different regulatory framework.
Explore AdvancedPMS, AIF & SIF
Portfolio management, alternative funds and specialised strategies for larger portfolios.
Worth checking: minimums are high, and eligibility for NRIs depends on the product and the AMC.
ExploreInvesting in India From Abroad
Confirm your status and KYC
We help you complete KYC with your PAN, passport, address proof from abroad and FATCA details.
Open the right accounts
You open NRE, NRO and, if you want dollar deposits, FCNR(B) accounts, plus a demat or PIS account if needed.
Choose the investments and the route
We decide what to buy and whether to invest on a repatriable or non-repatriable basis.
Invest and track
You invest online from abroad, and we help you follow your portfolio.
Plan tax and repatriation
We help you think through Indian tax, treaty relief and how to bring money back when you need it.
Repatriation Basics
- Investments made from NRE or FCNR(B) funds on a repatriable basis can be sent abroad with their gains, after applicable tax
- Money in an NRO account can be repatriated up to USD 1 million per financial year, after tax, using Forms 15CA and 15CB
- Sale proceeds of property and other Indian assets also fall under these conditions and limits
- Keep records of the source of funds, because banks ask for them
Tax Points to Check
- NRO interest and capital gains attract tax deducted at source at higher rates for non-residents
- NRE and FCNR(B) interest is tax-free in India but may be taxable where you live
- A tax treaty (DTAA) may reduce double taxation, and you may need to file an Indian return
- Some countries have special rules for Indian funds, such as PFIC rules in the US
NRIs in the US and Canada
Because of FATCA, some Indian fund houses do not accept new investments from US or Canadian residents. Several do, and GIFT City funds can be another route. Rules also differ on the tax side in your country. We help you find what is open to you today.
NRI Investment FAQs
Can NRIs invest in Indian mutual funds?
Yes. NRIs can invest in most Indian mutual funds through an NRE or NRO account after completing KYC and FATCA declarations. Some fund houses do not accept new investments from US or Canadian residents, so check before you apply.
What is the difference between NRE, NRO and FCNR(B) accounts?
An NRE account holds foreign earnings in rupees, and its interest is tax-free in India and fully repatriable. An NRO account holds income earned in India, such as rent or dividends, and its interest is taxable. An FCNR(B) account is a foreign-currency deposit whose interest is also tax-free in India and fully repatriable.
Do I need a PIS account to buy shares in India?
To buy and sell listed shares on a repatriable basis using NRE funds, you need a Portfolio Investment Scheme (PIS) account with a designated bank. Non-repatriable investing through an NRO account follows a different route. Mutual funds and IPOs have generally not needed PIS permission.
Can NRIs buy property in India?
Yes. NRIs and OCIs can buy residential and commercial property. They cannot buy agricultural land, plantation property or farmhouses. Repatriation of sale proceeds is subject to conditions and a limit of USD 1 million per financial year.
Are NRI investments in India repatriable?
Investments made from NRE or FCNR(B) funds on a repatriable basis can be sent abroad along with gains, after applicable tax. Money held in an NRO account can be repatriated up to USD 1 million per financial year, after paying tax and filing Forms 15CA and 15CB.
Is the interest on NRE deposits taxable?
Interest on NRE and FCNR(B) deposits is exempt from income tax in India while you are a non-resident, but it may be taxable in your country of residence. Interest on NRO deposits is taxable in India, with tax deducted at source.
Can OCI cardholders invest like NRIs?
For most investments, OCI cardholders are treated like NRIs and can use the same accounts and routes. Agricultural land is an exception.
Can I invest in India while living abroad?
Yes. Many steps, including KYC and investing, can be done online or from abroad, although requirements vary by bank and by your country of residence. We guide you through the documents and the process.
Do I need to file an income tax return in India?
You may need to if your Indian income, such as rent, interest or capital gains, is above the exemption limit, or if you want to claim a refund of tax deducted at source. A tax professional can confirm what applies to you.
You May Also Need
Planning to Invest in India From Abroad?
Speak to a VR Capittal advisor for a free conversation about the right accounts, investments and tax points for you.
Disclaimer: Investments are subject to market risks. Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Past performance is not indicative of future returns. FEMA, RBI and tax rules for NRIs and OCIs change, and availability depends on the product provider and your country of residence, so please confirm the current position with the provider and a tax professional. This page is for general information and is not personalised investment, tax or legal advice. VR Capittal is an AMFI-registered mutual fund distributor (ARN - 251873).