Can Indian residents invest in US mutual funds legally?

Yes. Indian residents can legally invest in US mutual funds from India by investing in an indirect US-focused Fund of Funds (FoF) or by directly setting up a demat account with a brokerage platform that offers a way to directly invest in the US markets.

What amount can an investor remit in a US investment on an annual basis?

Under the RBI's LRS, all Indian residents can send up to USD 250,000 in every financial year. Remittances exceeding Rs. 10 lakh attract 20% TCS (from 1st April 2025), which will be claimable in ITR as credit. For India-domiciled international funds, the LRS limit does not apply as these are INR-based SEBI-regulated products.

Should I have a US bank account to invest in US mutual funds?

No, you do not need to have a US bank account to invest in US mutual funds from India. You can use your existing bank account in India to pay for your investments with international brokers or local stock exchanges providing overseas stock trading, often with the RBI's Liberalised Remittance Scheme (LRS).

Can I invest in a US-focused Fund of Funds (FoF) using SIP from India?

Yes. For a US-focused Fund of Funds (FoF), SIP functionality is offered in the same way as other mutual funds through platforms such as Dhan or directly on the AMC websites. SIPs are specifically recommended as they average out both the volatility in the stock market and USD/INR exchange rate over a long investment period by a mechanism called rupee cost averaging.

What are the advantages of investing in US mutual funds from India?

The benefits of investing in US mutual funds from India are that they offer exposure to a larger variety of industries and companies around the world, offer diversification opportunities for investors, and can potentially provide long-term growth opportunities for investors.