We answer common questions about minimum investment requirements (₹1 crore for AIFs and ₹50 lakh for PMS), differences between AIF categories, risks and liquidity considerations, evaluating fund managers and tax treatment differences among AIFs, PMS, mutual funds and GIFT‑City funds.
Can NRIs invest in AIFs and PMS in India?
Yes. NRIs are allowed to invest in both AIFs and PMS in India, subject to FEMA regulations. Investment can be made through NRE / NRO accounts, and each fund may have specific onboarding requirements, KYC norms, and documentation procedures.
What documentation is required for NRI investment?
Documents generally required for NRIs
- Passport (Indian or foreign with OCI/PIO)
- Overseas address proof
- PAN card
- NRE/NRO bank details
- FATCA declaration
- Recent photographs
Note: Some AIFs may also require CPV (contact point verification) and additional notarization/apostille, depending on your country of residence.
What are the tax implications for NRIs investing in AIFs and PMS?
Taxation by fund category
- PMS: Capital gains tax applies as per asset class (equity or debt).
- AIF Category I & II: Pass-through status; taxes are applied at investor level.
- AIF Category III: Taxed at the fund level.
NRIs may also need to check DTAA (Double Tax Avoidance Agreement) with their country of residence.
Note: It is recommended to consult a tax advisor for personalized guidance.
Can NRIs repatriate funds from AIF or PMS investments?
Yes, repatriation is possible if investments are made through an NRE account, subject to FEMA and RBI rules.
Investments made via NRO accounts are treated as non-repatriable, except for permitted limits.
Each fund house may also have separate operational guidelines for repatriation timelines.
How can NRIs complete onboarding or KYC for AIF/PMS investments?
NRI Onboarding Options
- Online KYC processes (video KYC, digital forms)
- Courier submission of physical forms (if required)
- Bank-attested or notarized documents
Rurash assists end-to-end with onboarding, documentation, CPV, and compliance support to ensure a smooth experience from overseas.
What makes AIF or PMS a good option for NRIs?
NRIs often choose AIFs & PMS because they offer:
- Access to professionally managed, high-quality portfolios
- Exposure to India’s fast-growing equity & alternative markets
- More sophisticated strategies compared to mutual funds
- Transparent performance reporting
- Attractive long-term wealth creation potential
Can NRIs invest in AIFs and PMS in India?
Yes. NRIs are allowed to invest in both AIFs and PMS in India, subject to FEMA regulations. Investment can be made through NRE / NRO accounts, and each fund may have specific onboarding requirements, KYC norms, and documentation procedures.
What documentation is required for NRI investment?
Documents generally required for NRIs
- Passport (Indian or foreign with OCI/PIO)
- Overseas address proof
- PAN card
- NRE/NRO bank details
- FATCA declaration
- Recent photographs
Note: Some AIFs may also require CPV (contact point verification) and additional notarization/apostille, depending on your country of residence.
What are the tax implications for NRIs investing in AIFs and PMS?
Taxation by fund category
- PMS: Capital gains tax applies as per asset class (equity or debt).
- AIF Category I & II: Pass-through status; taxes are applied at investor level.
- AIF Category III: Taxed at the fund level.
NRIs may also need to check DTAA (Double Tax Avoidance Agreement) with their country of residence.
Note: It is recommended to consult a tax advisor for personalized guidance.
Can NRIs repatriate funds from AIF or PMS investments?
Yes, repatriation is possible if investments are made through an NRE account, subject to FEMA and RBI rules.
Investments made via NRO accounts are treated as non-repatriable, except for permitted limits.
Each fund house may also have separate operational guidelines for repatriation timelines.
How can NRIs complete onboarding or KYC for AIF/PMS investments?
NRI Onboarding Options
- Online KYC processes (video KYC, digital forms)
- Courier submission of physical forms (if required)
- Bank-attested or notarized documents
Rurash assists end-to-end with onboarding, documentation, CPV, and compliance support to ensure a smooth experience from overseas.
What makes AIF or PMS a good option for NRIs?
NRIs often choose AIFs & PMS because they offer:
- Access to professionally managed, high-quality portfolios
- Exposure to India’s fast-growing equity & alternative markets
- More sophisticated strategies compared to mutual funds
- Transparent performance reporting
- Attractive long-term wealth creation potential
