Mutual Fund NRI Transaction
Q01 Do Mutual Funds assure returns ?
Q02 Can I gift Mutual Fund units to my relatives in India ?
Q03 Can I repatriate my earnings on redemption ?
Q04 Can I repatriate my initial investment, earnings (capital gains) from redemption and any dividend arising from it ?


Do Mutual Funds assure returns ?
Although SEBI regulations allow Mutual Funds to offer guaranteed returns subject to the Fund meeting certain conditions, most Mutual Funds in India do no provide a guaranteed return on their schemes. In such cases, the sponsor, the AMC, or any other person, guarantees a minimum level of return and makes good the difference if the actual returns are less than the guaranteed minimum. The name of the guarantor and the manner in which the guarantee shall be met must be disclosed in the offer document by the Mutual Fund. Investment in mutual funds is not guaranteed by the Government of India, the Reserve Bank of India or any other government body.
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Can I gift Mutual Fund units to my relatives in India ?

Yes. Certain funds do permit gifting of units. One shoud refer to the offer document of the specific fund to know the details.

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Can I repatriate my earnings on redemption ?

If the investment is made on a repatriation basis, the net income or capital gains (after tax) arising out of investment are eligible for repatriation subject to regulatory guidelines in force at the time of repatriation. If the investment is made on a non-repatriation basis, only the net income, that is, dividend, arising out of investment is eligible for repatriation.
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Can I repatriate my initial investment, earnings (capital gains) from redemption and any dividend arising from it ?

If the investment is made on a repatriation basis, the net income or capital gains (after tax) arising out of investment is eligible for repatriation subject to regulatory guidelines in force at the time of the repatriation. If the investment is made on a non-repatriation basis, only the net income, that is, dividend, arising out of investment is eligible for repatriation.
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