NRI with Groww: Can I continue investing in mutual funds from NRO account?

Ans: Converting your savings account to a Non-Resident Ordinary (NRO) account can bring about several changes, especially when it comes to your investments in mutual funds. Here’s how to navigate your situation effectively.

Continuing Your Mutual Fund Investments
Since you have invested in mutual funds through your Groww account, you can continue investing from your NRO account. Here are some important points to consider:

Same Account Number: Since your account number remains the same, your investments in mutual funds through the Groww platform can continue. The transition to an NRO account does not automatically hinder your investment.

Fund Investment: As long as the mutual fund house allows investments from NRO accounts, you can keep investing in the same funds. However, ensure that the mutual fund you are investing in accepts funds from NRO accounts.

Updating Your NRI Status
When you convert to an NRO account, there are some updates and considerations you should be aware of:

Notify the Fund House: Inform the mutual fund house about your change in status to NRI. This is crucial for regulatory compliance and ensuring that your investments are correctly classified.

Tax Implications: NRI investments are subject to different tax treatments. Capital gains from mutual fund investments are taxed differently for NRIs, particularly with regards to Long-Term Capital Gains (LTCG) and Short-Term Capital Gains (STCG). You should familiarize yourself with these changes to manage your tax liability effectively.

KYC Compliance: Make sure your KYC (Know Your Customer) details are updated according to your NRI status. This may involve submitting new documents that reflect your NRI status, such as a valid passport, visa, and proof of residence abroad.

Why Professional Guidance is Essential
During transitions like converting to an NRO account, it’s often challenging to manage investments independently. Here’s why seeking professional help is advantageous:

Expertise in NRI Investments: A professional Mutual Fund Distributor (MFD) can guide you through the complexities of investing as an NRI. They can help you understand the implications of your status change on your investments.

Tailored Financial Advice: An MFD can provide personalized advice based on your financial goals, risk appetite, and investment horizon, ensuring that your portfolio aligns with your needs.

Assistance with Documentation: Managing the necessary paperwork during this transition can be overwhelming. A professional can help ensure that all required documents are submitted correctly and promptly.

Handholding Throughout the Process: Having an expert to assist you can ease your concerns and help you navigate the investment landscape confidently. They will be there to address any queries you may have and provide ongoing support.

Final Thoughts
You can continue investing from your NRO account using your existing Groww account, as long as you keep the mutual fund houses informed about your NRI status. It’s vital to update your KYC details and understand the tax implications of your investments.

However, managing investments as an NRI can be complex. Therefore, engaging a certified professional MFD is highly recommended. They can provide you with the necessary guidance and support as you navigate this transition.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment