🌍 NRI Investing
How to Invest in India From the US — Step by Step
Quick answer, then the full sequence.
Direct answer: Open an NRE or NRO account with an Indian bank, complete KYC, then invest through mutual funds (simplest, no extra approval needed), direct equity (requires PIS approval from your bank), or PMS/AIF if you have ₹50L+/₹1Cr+. None of this requires being physically in India.
The Full Sequence
- Open NRE and/or NRO account — NRE for foreign-earned money (tax-free interest, fully repatriable), NRO for India-sourced income
- Complete KYC — PAN, passport, overseas address proof, most banks handle this remotely now
- For mutual funds — no additional approval needed beyond KYC; invest directly through the AMC or a platform
- For direct equity — apply for PIS (Portfolio Investment Scheme) designation, linked to your NRE or NRO account, through your bank
- For PMS/AIF — same PIS requirement applies if buying listed securities; minimums are ₹50L (PMS) and ₹1Cr (AIF)
- For dollar-denominated exposure without rupee conversion — consider GIFT City products instead of the NRE/NRO route entirely
What Actually Trips People Up
| Mistake | Fix |
|---|---|
| Assuming mutual funds need PIS too | They don't — PIS is only for direct listed equity |
| Not filing W-8BEN equivalent docs for Indian tax residency status | File Form 10F + get a TRC to claim DTAA benefits from day one |
| Forgetting Schedule FA-equivalent India-side disclosure doesn't apply to India itself, but does for US-side reporting on Indian holdings | If you're a US tax resident, check FBAR/FATCA obligations on these Indian accounts |
Where to Go Deeper
Each step above has its own detailed article: opening a demat account, PIS explained in full, GIFT City as an alternative route.
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⚠️ Disclaimer: Ashvamedha Finance's SEBI Research Analyst registration is currently in application. This content is educational and general in nature, not personalised investment, tax, or legal advice, and not a recommendation to buy, sell, or hold any security. Figures and rankings cited are sourced from public data as of the date noted and may change. Consult a SEBI-registered investment adviser or a qualified CA for advice specific to your situation before making any financial decision.