Which Mutual Funds Restrict US-Based NRIs?

I think people should also distinguish between US citizens, green card holders and Indian citizens working in the USA.

For mutual fund compliance, the definition of a US person or US tax resident can be important. Having an H-1B visa does not automatically settle every tax residency question.

I contacted one AMC last year, and they asked for my US tax identification information, overseas address and FATCA declaration. Another fund house did not accept fresh investments from my country of residence.

Also, don't assume that if an AMC rejects new SIP registrations, it will automatically redeem your existing units. Existing holdings and fresh purchases can be treated differently.

If you already have investments from before moving to the USA, update your residential status and overseas tax details with the AMC and registrar.

I would also check whether the AMC permits additional purchases in existing schemes. Some investors assume that being allowed to hold existing units means they can continue investing, which isn't necessarily true.

I faced a similar problem after moving to Texas. I initially tried investing through an online mutual fund platform, but the transaction was not available for my US-based NRI account.

From what I have experienced, the restrictions are not identical across all AMCs.

Some fund houses completely restrict fresh investments from US residents, while others may accept applications when the investor is physically present in India and submits additional declarations.

I would suggest checking these separately:

• Whether the AMC accepts US-based NRI investors.
• Whether fresh lump-sum investments are allowed.
• Whether monthly SIP registration is permitted.
• Whether physical applications are accepted.
• Whether existing investments can continue.

I also learned that completing FATCA documentation does not automatically mean an AMC will accept your investment.

My advice is to contact the AMC's NRI desk and get confirmation in writing before transferring money. Also, check the particular scheme's latest SID because restrictions can sometimes be scheme-specific.

I have been living in New Jersey for almost seven years and recently checked several Indian mutual fund companies.

One important thing I noticed is that restrictions imposed by an investment platform and restrictions imposed by the AMC are not necessarily the same.

For example, Zerodha Coin currently states that US and Canada-based NRIs cannot invest in mutual fund schemes through its platform due to operational reasons. That does not automatically mean every AMC has the same restriction.

I also came across NJ Mutual Fund's policy, which allows certain US and Canada-based NRI/PIO investors to apply when physically present in India, subject to additional documentation and AMC approval.

So there may still be options, but the process can be inconvenient.

I would not rely on old online lists because some of them are outdated. Contact the fund house directly and ask whether it accepts fresh purchases from a US tax resident.

Also, if you are investing from the USA, don't forget to investigate PFIC taxation with your US tax adviser. That can be a bigger issue than the actual investment registration.