NRI (UK) mutual fund investment advice

[BUZZ]

Check out:
http://www.profitshastra.com/services.html

Brokers always encourage to get NRI a/c because they make handsome money from their very high brokerage and maintenance charges.

Why highlighted for USA and Canada NRIs. others are not NRI? for example Europe, Australia , other part of world?

Please note that NRI's based out of USA and Canada CAN open demat/trading accounts in India.

Such a stupid statement.

 

[yodlee99]

I thought exactly the same when I read this. RBI has opened the channels for NRI investments for quite some time now. But in reality, the SEC of US & Canada (which is equivalent to our SEBI) does not allow them to invest abroad with some exceptions, as always. Hence, ICICI and HDFC have effectively stopped giving online trading & demat account to NRIs only from US and Canada. This website claims that these NRIs can invest directly, something that is new to me as well.

 

[hihowruin]

I thought exactly the same when I read this. RBI has opened the channels for NRI investments for quite some time now. But in reality, the SEC of US & Canada (which is equivalent to our SEBI) does not allow them to invest abroad with some exceptions, as always. Hence, ICICI and HDFC have effectively stopped giving online trading & demat account to NRIs only from US and Canada. This website claims that these NRIs can invest directly, something that is new to me as well.

Just wanted to add few more points

Besdies the banks you mentioned, SBI too doesn't allow online trading coz they are not SEC complaint or in other words they are not registered with SEC. However where online trading is not allowed, offline trading is possible. For example, SBI Securities allows offline trading.

Being a UK NRI the way I look at it as "brokers trying to make as much as they can" from NRI's, although it doesn't cost as much to them. People like me don't want to take risk with their money, so they invest with NRI status. And banks take advantage of this. India is a big country and it is more likely that no one will notice if an NRI applys as resident.... but the question is "IF they do?"

However I don't think there is any difference in 'AMC charges' or 'taxes in long term gains' in equity related fund.... correct me if I am wrong

 

[BUZZ]

No matter India is big or small country, Its all about the law and order which need to follow strictly. And we know our law ans order.

India is a big country and it is more likely that no one will notice if an NRI applys as resident.... but the question is "IF they do?"

"IF"?? There are lot of ways to deal with this "IF" in future.

I don't think any NRI gets black money in foreign country and pumping in India. It's their hard money only. They pay tax in their existing country.

We citizen even try to save tax by producing bla bla documents.

Not only that some people produce fake documents to save tax. Can NRI does the same in his/her existing country. My answer in NO. He will be thrown out of country if he does so.

Let me ask? You provide me a single country's example where such things happen and you see such loop holes for citizens who are living outside of country?

 

[hihowruin]

Can NRI does the same in his/her existing country. My answer in NO.

Yes NRI's can... corruption and frauds are everywhere, but the nature and the degree may differ from country to country

[/QUOTE] Let me ask? You provide me a single country's example where such things happen and you see such loop holes for citizens who are living outside of country?[/QUOTE] What do you mean?

 

[BUZZ]

What do you mean?

I meant people who are living out side their country (I am not talking about NRIs only).

I think you need to get the exposure of living in foreign country and you yourself will realize the degree of corruption etc. and then come back and compare.

You yourself will know the difference.

 

[hihowruin]

I meant people who are living out side their country (I am not talking about NRIs only).

I think you need to get the exposure of living in foreign country and you yourself will realize the degree of corruption etc. and then come back and compare.

You yourself will know the difference.

Buzz my opinion is based on my experince living both in India and abroad. I didn't assume.

 

[yodlee99]

Answer to your queries on taxes from NRI point of view, as it stands today:
http://www.mutualfundsindia.com/nri_guide2.asp

This could change with DTC from Apr 2012

 

[GoIndia]

I contacted Profitshastra using the links provided in this discussion page and I thought I will share my experience:
- These guys open NRI accounts from all over the world. It is very clearly mentioned on the webpage link.
- They have also mentioned that NRIs from USA and Canada can't trade online. A dealer gets assigned to the clients so that they can trade offline.
- Founder is a NRI and they have tied up with Kotak Securities to provide these services.

I provided them my address in UK and all the account related forms showed up promptly. It had a checklist where I needed to sign on each form. It took me literally twenty minutes to sign the forms. I didn't have to fill the forms.

I sent the signed forms back to the Kotak account opening executive in Mumbai. He has received it and so far my NRE and NRE PINS account have been opened. According to them, trading and demat account will be opened in another week.

So far no complaints. Thanks for providing the link.

 

[yodlee99]

You have mentioned about brokerage, PINS and demat account. I guess your aim is to invest in stocks directly.
I was told earlier that NRIs don't get demat account directly. However, having PINS account is a completely a new and altogether a different ball game. You will have someone like a fund manager, who call the shots for the most part. Infact, RBI keeps a close tab on it and when a company receives its full quota of NRI funds, you won't be able to invest in it anymore. Some of the big guys (called private equity) operate in indian stocks via PINS account. What are its annual charges and is there a minimum limit to the funds that you need to keep it open?