Can an NRI invest in Indian mutual funds?

A large number of NRIs assume they are shut out of Indian markets. They are not. Under FEMA, a Non-Resident Indian is permitted to invest in Indian mutual fund schemes on a full, repatriable or non-repatriable basis. The scheme you buy is the same scheme a resident buys; what differs is the account the money comes from and how the tax is collected.

Here is the fact that surprises most people, and that is worth stating plainly because it removes the single biggest imagined blocker: you do not need a Portfolio Investment Scheme (PIS) account to invest in mutual funds. A PIS account is the RBI mechanism for an NRI to buy and sell individual shares on a stock exchange. Mutual funds sit outside it. You invest directly through the fund house using your NRE or NRO bank account — no PIS permission, no separate broking arrangement for the fund itself.

What you do need is an NRE or NRO bank account in India, a completed KYC that reflects your NRI status, and a FATCA/CRS declaration. We cover each of those below.

For the country-specific reality — especially if you live in the USA or Canada — see investing from the USA or Canada, and the full NRI guide pulls the whole picture together.