First of all, I am a big fan of your column.

Please keep up the good work.

I would request you to please share some information around long term (horizon) equity (risk appetite high) mutual funds which Canadian citizens can purchase.

Also, as the market being high and I, a Canadian resident, have some surplus in hand, would you advise investing lump sum or park in bank and invest via SIP?

Ans: Below funds can be considered:

• Parag Parikh Flexi-cap fund
• Samco Flexi Cap Fund
• HDFC Index Fund – Sensex plan
• UTI Flexi cap Fund

Ans: Kindly understand when it comes to investments, risk is always present, no matter how less. Same is with your fixed deposits as well as they cover only till Rs. 5 lacs in case of the default. Going by your questions, we are assuming you're planning to invest for the 1st time, we suggest your invest in Balanced Advantage funds, they are a type of Hybrid funds, wherein you get exposure to equity markets but they also provide stability through the debt element. As for the return part, there is no fixed return component in mutual funds (or equity markets). But if are invested for a period of 3-5 years, you can expect a return of 10-14% CAGR. You can browse our portal, we would be happy to help.

Ans: Thank you for your kind words! I'm glad my insights were helpful for your investment strategy. While suggesting specific schemes in an online forum isn't ideal, I highly recommend consulting a Certified Financial Planner (CFP) for personalized advice. A CFP can assess your unique financial situation and goals to suggest the best funds in large, medium, small, and multi-cap categories. This tailored approach ensures you make informed decisions that align with your investment objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Investing in Indian mutual funds as an NRI from the USA or Canada can be more complex due to regulations like FATCA (Foreign Account Tax Compliance Act). Not all mutual fund houses accept investments from NRIs in these countries, and some have additional requirements.

Mutual Funds Accepting Investments from US/Canada NRIs

While the list can change, here are some mutual fund houses known to accept investments from US/Canada NRIs:

Aditya Birla Sun Life Mutual Fund
SBI Mutual Fund
UTI Mutual Fund
ICICI Prudential Mutual Fund
Tata Mutual Fund
L&T Mutual Fund
PPFAS Mutual Fund
Sundaram Mutual Fund
Nippon India Mutual Fund
Direct Investment Options

Some mutual fund houses allow NRIs to invest directly online without visiting India:

Aditya Birla Sun Life Mutual Fund
SBI Mutual Fund
UTI Mutual Fund
Important Considerations

KYC (Know Your Customer) Verification: You'll need to complete KYC verification as per Indian regulations.
NRE/NRO Account: You'll need an NRE or NRO account in India to invest in mutual funds.
FATCA/CRS Compliance: Be aware of the implications of FATCA and Common Reporting Standard (CRS) on your investments.
Investment Goals: Clearly define your investment goals, risk tolerance, and investment horizon.
Diversification: Consider diversifying your investments across different asset classes and fund categories.
Professional Advice: If you're unsure about investment decisions, consult with a financial advisor who specializes in NRI investments.

Recommended Types of Mutual Funds
Equity Funds
Large-Cap Funds: These invest in stable, large companies. They offer moderate returns with relatively lower risk.

Mid-Cap Funds: Invest in medium-sized companies with potential for higher growth. They come with higher risk compared to large-cap funds.

Small-Cap Funds: These funds target small companies. They offer high growth potential but come with high risk.

Debt Funds
Short-Term Debt Funds: Ideal for conservative investors seeking stable returns. They invest in short-term debt instruments.

Corporate Bond Funds: These invest in high-rated corporate bonds. They offer higher returns compared to government bonds.

Liquid Funds: These are low-risk funds suitable for parking surplus cash. They provide quick liquidity and moderate returns.

Hybrid Funds
Aggressive Hybrid Funds: These invest in a mix of equity and debt. They offer a balanced risk-return profile.

Conservative Hybrid Funds: These have a higher allocation to debt, suitable for conservative investors.

Direct vs Regular Funds
Disadvantages of Direct Funds
Lack of Guidance: Direct funds do not offer advisory services. Investors may lack professional advice.

Time-Consuming: Managing direct investments requires significant time and knowledge.

Benefits of Regular Funds
Expert Advice: Certified Financial Planners provide valuable insights. They help in selecting and managing your investments.

Better Monitoring: Regular funds come with ongoing support and portfolio reviews. This helps in better management of your investments.

Final Insights
Investing in Indian mutual funds as an NRI is a viable option. Ensure you comply with all regulations and choose funds that align with your goals.

Consider seeking advice from a Certified Financial Planner. They can provide tailored recommendations and ongoing support. This ensures your investments are well-managed and aligned with your financial objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in