Can NRIs invest in AIFs and PMS in India?
Yes. NRIs can invest in AIFs and PMS subject to the Foreign Exchange Management Act (FEMA) and SEBI regulations. Investments are usually made through NRE (repatriable) or NRO (non‑repatriable) accounts. Each fund has its own guidelines regarding NRI participation; Planet AIF helps you determine eligibility and compliance.
What documentation is required for NRI investment?
You will typically need:
- KYC documents: PAN card, passport (Indian or foreign with OCI/PIO status), overseas address proof and a recent photograph.
- Banking documents: details of your NRE/NRO account and, for PMS, a Portfolio Investment Scheme (PIS) account if required.
- FATCA and FEMA declarations: forms confirming tax residency and compliance.
- Notarised or Bank‑Attested Copies: many fund houses require documents to be notarised or attested when submitted from abroad.
Additional requirements such as contact point verification (CPV) or apostille may apply depending on your country of residence. Planet AIF assists you through all documentation and KYC procedures.
What are the tax implications for NRIs investing in AIFs, PMS and GIFT City funds?
- PMS: capital gains tax applies based on the underlying asset class, and securities transaction tax may be payable.
- AIF Category I & II: these funds have pass‑through status; income is taxed at the investor level.
- AIF Category III: tax is paid at the fund level.
- GIFT City funds: enjoy lower dividend and capital‑gains taxes (around 9 %), no tax deducted at source and exemptions from GST.
Tax treatment depends on your country of residence and any applicable Double Taxation Avoidance Agree
Can NRIs repatriate funds from AIF or PMS investments?
Yes. Investments made through an NRE account are fully repatriable, subject to FEMA and RBI rules. Investments via an NRO account are generally non‑repatriable except within permitted limits. GIFT‑City structures may offer additional flexibility for overseas remittance.
How can NRIs complete onboarding or KYC?
Options include
- Video KYC / Digital Forms: many fund houses offer remote KYC through video conferencing.
- Courier Submission: physical forms and notarised documents can be couriered to the fund house.
- Bank‑Attested Documents: visiting an authorised bank branch overseas to have documents attested.
Planet AIF provides end‑to‑end support, from arranging CPV to assisting with bank attestations and digital submission.
Why choose AIF or PMS for NRI portfolios?
These investment vehicles offer NRIs:
- Professional Management & High‑Quality Portfolios: AIFs and PMS are run by experienced fund managers.
- Exposure to India’s Growth Story: NRIs can access private equity, venture capital, credit and public‑equity strategies in one of the world’s fastest‑growing economies.
- Sophisticated Strategies & Transparent Reporting: strategies go beyond mutual funds and offer customisation and clear performance reports.
- Potential for Long‑Term Wealth Creation: by participating in the Indian and global alternative investment ecosystem, NRIs can aim for superior risk‑adjusted returns.
Our NRI desk is available to craft bespoke solutions and guide you through all regulatory and operational requirements.
