Investing in Indian mutual funds from the UK

Can you invest from the UK?

Yes. Under FEMA, a Non-Resident Indian living in the United Kingdom can invest in Indian mutual fund schemes, and the scheme is the same one a resident buys. You do not need a Portfolio Investment Scheme (PIS) account; that is for buying individual shares. Can an NRI invest? covers the rule in full.

The blanket refusals many NRIs hear about are mostly aimed at residents of the USA and Canada. Each fund house still sets its own rules for every country, and they change, so we confirm what is open to you at the time you apply rather than quoting a fixed list.

The account your money comes from

You invest from an NRE or an NRO account in India. Money earned in the UK and sent home usually sits in an NRE account; income earned in India usually sits in an NRO account. Money invested from NRE can go back abroad when you redeem; repatriation from NRO is limited and needs tax paperwork. The choice is made before you invest, because it follows the money out. NRE vs NRO for mutual funds explains it.

The paperwork

Expect to provide your PAN, your passport, proof of your UK address, your NRE or NRO account details and an in-person or video verification. The FATCA/CRS self-declaration asks for your country of tax residence and your UK tax reference. The United Kingdom takes part in the international exchange of financial account information, so what you declare is reported to the tax authority where you are resident. We prepare the forms for your case so they are right the first time. The full checklist is on NRI mutual fund KYC.

Tax, as a mechanism

On the Indian side, tax on a mutual fund gain is deducted at source (TDS) when an NRI redeems, before the money reaches you. India and the UK have a Double Taxation Avoidance Agreement (DTAA), which is meant to stop the same income being fully taxed twice; claiming its benefit usually needs a Tax Residency Certificate.

On the UK side, the UK has its own rules for how gains on overseas funds are treated, and they can differ from the treatment of a UK fund. That is real, specific to you, and a matter for a UK tax adviser, not for us. We explain that these mechanisms exist; we do not work out your tax in either country. TDS for NRIs has the Indian-side detail.

If you move back to India

When you return, your residential status changes and your mutual fund records need to change with it: the KYC moves to resident status, the bank account on the folio moves from NRE or NRO to a resident account, and the fund house and registrar are told. This is paperwork we can do with you.

Your next step

Tell us that you live in the UK and whether you will invest from an NRE or NRO account, and we will tell you honestly what is open to you and what the paperwork looks like. Our phone lines run Monday to Sunday, 8:00 AM to 10:00 PM IST, which overlaps with the UK morning and afternoon; email suits any hour.

NRI accounts are opened directly through this enquiry, not through the online account-opening journey that India-resident investors use.

Send an NRI enquiry