I m australian, bt want to invest in indian mutual fund. can any 1 help me what things should i keep in mind?

what advantages n dis advantages will be there for a NRI to invest in indan mutual funds being in australia? thx

hi if u wanna invest in india .the big market and best bussiness is real estate.u r money will double with in one yr.how much u wana invest .invest in real estate at metro cities like delhi ,bombay chd . also and one more noida is now best place to invest money in realestate.

r u an NRI ?if u r an australian than u r not an Indian. u may be 'Overseas Citizen of India' and can enjoy all the benefits of an NRI. If u r an australian citizen & not still OCI, u cannot get NRI benefits. so first be clear of your status.

The following points may be kept in mind:

NRIs are permitted to make direct investments in shares/ debentures of Indian companies/ units of mutual fund. They are also permitted to make portfolio investments i.e. purchase of share / debentures of Indian Companies through stock exchange. These facilities are granted both on repatriation and non-repatriation basis.

NRI can invest in the following products.

Equity trading on BSE and NSE
Derivatives trading on the NSE
IPO online
Portfolio Management
Investments in Mutual Funds

You can invest in Mutual Funds through NON PIS account.


As you probably know, mutual funds have become extremely popular over the last 20 years. What was once just another obscure financial instrument is now a part of our daily lives. In fact, to many people, investing means buying mutual funds. After all, it's common knowledge that investing in mutual funds is (or at least should be) better than simply letting your cash waste away in a savings account.

What do you mean by Mutual Funds?

A mutual fund is nothing more than a collection of stocks and/or bonds. You can make money from a mutual fund in three ways:

Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly all income it receives over the year to fund owners in the form of a distribution.

If the fund sells securities that have increased in price, the fund has a capital Gain. Most funds also pass on these gains to investors in a distribution.

If fund holdings increase in price but are not sold by the fund manager, the fund's shares increase in price. You can then sell your mutual fund shares for a profit.

Advantages of Mutual Funds:

Professional Management -A mutual fund is a relatively inexpensive way for a small investor to get a full-time manager to make and monitor investments.

Diversification - By owning shares in a mutual fund instead of owning individual stocks or bonds, your risk is spread out.

Economies of Scale - Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower than you as an individual would pay.

Liquidity - Just like an individual stock, a mutual fund allows you to request that your shares be converted into cash at any time.

Simplicity - Buying a mutual fund is easy! Most Companies have their own line of mutual funds, and the minimum investment is small.

Disadvantages of Mutual Funds:

Professional Management - Management is by no means infallible, and, even if the fund loses money, the manager still takes his/her cut.

Costs - The mutual fund industry is masterful at burying costs under layers of jargon.

Dilution - It's possible to have too much diversification. Because funds have smallholdings in so many different companies, high returns from a few investments often don't make much difference on the overall return.

Taxes - When making decisions about your money, fund managers don't consider your personal tax situation.

SOURCE: AMFI

I feel religare offers a good NRI support:

http://www.religare.in/nri.asp#

Adding to Vinayacharya's answer....
Pls check as Australian are you permitted to invest in other countries MF/equity market.

If my understanding is correct you can only invest in other Currency market and not in equity markets

Please have this clarified before you proceed

If you are legally permitted per your status-for a Annual fee I can design the portfolio /asset allocation that could provide for the optimal returns-However a legal contract is necessary to share a % of profits beyond a percentage annual return.Minimum 2 to 3 years holding - for a overview contact me/us at <IAAI.Kapital@gmail.com> with the Investment amount you envisage.