Managing investments abroad can be tricky, especially if you are an NRI who has returned to India but still own assets abroad. With the Indian economy booming across the world, having a proper control over your foreign portfolio calls for a thorough knowledge of relevant law and process. Here’s how to manage your NRI investments in India properly.
Consolidate View of All Your Investments
One of the most difficult NRIs’ confront is obtaining a full record of their investments across various platforms. Use technologies like MF Central, which was created as a collaborative effort between CAMS and KFintech. This website allows you to monitor your complete mutual fund portfolio in real time, track performance using precise analytics, and even change your personal information across all fund houses in one go. Alternatively, create an E-Consolidated Account Statement (E-CAS) using CAMS, KFintech, or the NSDL CAS portal. This complete summary covers all of your mutual fund investments from all fund houses, regardless of where they are held.
Digital Portfolio Management Tools
Never has remote investment management been so convenient due to technological developments. The Unified Investor App (UIP) developed by NSDL and CDSL in collaboration with SEBI, offers a unified picture of all your demat securities in both depositories. For those who hold mutual funds in the demat mode, it brings to them real-time tracking of their funds. Other online services, including Vested and Interactive Brokers, enable you to oversee your international investments directly from your smartphone or laptop in India, making portfolio management seamless across geography.
Understanding Cross-Border Taxation
More than 80 nations have Double Taxation Avoidance Agreements (DTAAs) with India. Your residential status determines the tax implications for you as a returning NRI. You are exempt from tax on foreign income not remitted in India for two years if you are a Resident but Not Ordinarily Resident (RNOR). By keeping adequate records of foreign tax paid and taking the Foreign Tax Credits, you are able to earn the maximum after-tax income by offsetting previously paid tax in foreign countries.
Keeping Information Updated Across Platforms
Always maintain your contact information current with all banking institutions. Consider unifying numerous folios within the same fund house to simplify management and reduce the risk of missing investments. MF Central allows you to update your personal information once, and it will be mirrored across all of your investments.
Set up family access for Indian family members, particularly senior parents, so that you can create a family account and view multiple family members’ investments (with their permission).
Maintaining Physical and Digital Records
Although online facilities are convenient, maintain a skeleton for physical paperwork too. Ask fund houses to provide physical statements on an annual basis for backup and record-keeping. This is particularly important for long-term investments in which you won’t be trading actively. Consider setting up a power of attorney or a reliable individual in India who can manage physical documents if necessary. This is important in emergency situations where quick action might be required on your investments.
Conclusion
Managing investments while being in the comfort of your home country, then technology is the only solution for you. You can have control and visibility of your foreign investments efficiently while residing in India using platforms like MF Central, E-CAS, and the Unified Investor App. Take a holistic approach: use online platforms for day-to-day management, make E-CAS statements quarterly, and keep annual hardcopy records. With careful planning and the right tools, you can manage your foreign portfolio well while still enjoying yourself at home.
FAQs
1. What is E-CAS and how do I access it?
Ans – E-CAS is a consolidated statement of all mutual fund investments. Access it via CAMS, KFintech, or NSDL CAS portal.
2. How long can I maintain RNOR status in India?
Ans – RNOR status typically lasts for 2 financial years, providing limited tax benefits on foreign income.
3. Can I manage my elderly parents’ investments from abroad?
Ans – Yes, through family access features on platforms like MF Central with proper authorization.
4. Do I need to convert all my foreign investments to Indian rupees?
Ans – No, you can maintain investments in foreign currencies and manage them from India.
5. What is the Unified Investor App?
Ans – A platform by NSDL and CDSL that provides a consolidated view of all demat securities.
6. How often should I update my investment records?
Ans – Review quarterly and generate comprehensive statements at least twice a year.
7. Are dividend payments from foreign shares taxable in India?
Ans – Yes, as a resident Indian, foreign dividends are taxable at your applicable income tax slab rate.
8. How do I consolidate multiple mutual fund folios?
Ans – Use MF Central to view all folios and then request consolidation through the respective fund houses.
9. Should I maintain physical records of my investments?
Ans – Yes, request annual physical statements as backup and for official documentation purposes.
10. How can I view all my mutual fund investments in one place?
Ans – Use MF Central or generate an E-CAS through CAMS or KFintech for a comprehensive view.
Disclaimer: The information provided here is for educational and informational purposes only and should not be construed as financial, legal, or tax advice. Consult with a qualified professional before making any investment decisions. We do not accept any liability for errors or omissions in this information nor any direct, indirect, or consequential losses arising from its use.
