Do you have a plan to multiply your hard-earned income?
The Indian government is trying hard to boost NRI investment in the mutual funds (MFs). However, it intends to implement the same idea on the indigenous market also. Can you assume why it is so? Why mutual funds are important? It’s just because the government wants its folks to pool what money they have in surplus. They can buy securities. Thereby, they can have a consistent source of income through the mutual fund investment. This scheme also helps financial institutions to raise money for further investment. It’s true that the interest rate may vary. But eventually, the investors get a golden opportunity to make more out of what money they have invested. Let’s get through the rundown of the expert advice on the mutual finds investment for beginner NRIs: 1. Repatriable or non-repatriable: The non-residents of India can multiply their bank balance by purchasing these securities. They should be well-versed with these facts stated under the FEMA (Foreign Exchange Management Act):
2. Application Formalities: To invest in this scheme, you should open a systematic investment plan (SIP). But before that, you should follow these steps to fill an online and offline form respectively:
3. Power of Attorney: As its name suggests, you can assign the authority to operate your MF account on your behalf through defining the power of attorney. Besides, you should be abided by these guidelines:
5. Redemption: It stands for regaining the possession of your MF. You should be aware of these facts:
6. TDS (Tax Deduction at Source): It’s noteworthy that you, an NRI, get the tax deducted at a source on capital gains. If you have kept the equity funds in the account for more than a year, you can enjoy tax exemption at source. Thereby,
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