Wednesday, May 21, 2008

Mutual Funds for NRI Investors..Many questions !

I have been trying hard luck to do some mutual fund investment's of my own choice using Citibank. But it seems bank has decided its own way of giving choice of available Funds. They show all the AMCs but when try to select a Fund e.g. I wanted UTI Master Index. It is not available for me to select.

So I though I will email the realtionship manager to get the answer. The link does not work :(. So I am trying to search Google and trying to find if AMCs have any restrictions for NRIs to invest in particular funds only ? If it is ..is it listed somewhere by the AMCs on their websites ?

If anyone reading this blog happen to know the answer to above questions ..please help me understand !....this will help lot of people who are looking for a similar answer.

btw ..it seems ICICIDirect too allows mutual fund transactions online for NRIs...if anyone has experience with that ..please share ..

Update
After researching http://www.valueresearchonline.com for sometime I got to know that we can know about the Fund and its eligibility for NRI Investment. For example you can goto :

UTI Master Index

and then goto the "Fund Details" tab, there is a Eligibility column which tells who is eligible to invest and whether it is repatriable.

Now the question is why Citibank is not offering UTI Master Index but offering Birla Index ! ..As per valuresearchonline Birla Index has 3 stars whereas UTI Master Index has 5 stars. The only difference I could find out is the Expense Ratio and Management Fee is higher for Birla Index, apart from that the returns are almost the same. Which is expected for Index Funds in the same category and assuming similar tracking error.


2 comments:

philip9876 said...

Iam an NRI based in Singapore and invest in the Indian stock markets thru icicidirect.com.

I do buy/sell mutual funds online on the icicidirect website. Quite easy and convenient. Also can setup SIP for monthly investment in the funds.

Anonymous said...

if you buy through the bank they will eat the entry load, like 2.25% in case some common funds.
Why Bank dont sell index funds is that there is not entry load, so they dont get anything out if it.

Best is open a account with https://www.icicipruamc.com/tracker/main.asp
or other online amc.

You can buy online, and transfer money via netbaking.

That is what I am doing, I have just started if anyone is already doing it and has some good/bad experience please share