India Opens Mutual Funds to Foreigners Via New Tax-Free Investment Route
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Foreigners can now invest in Indian mutual funds (MFs) via new feeder funds set up in GIFT City, without paying any capital gains tax.
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Feeder funds will invest in domestic MF schemes and have a simple KYC process compared to current requirements for Foreign Portfolio Investors.
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Non-Resident Indians (NRIs) can also invest via these funds without tax deducted at source on capital gains or needing an Indian bank account.
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The minimum investment is $150,000, so only wealthy foreigners/NRIs can invest.
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Funds will have US SEC registration to market to US investors; others can invest without marketing.