A Guide To Investing In Icici Prudential Funds

Non-Resident Indians (NRIs) can invest in ICICI Prudential Mutual Fund, one of the leading asset management companies in India. ICICI Prudential Mutual Fund offers a wide range of mutual fund schemes across equity, debt, and hybrid categories to cater to the different investment needs of its investors. NRIs can choose from a variety of ICICI Prudential NRI mutual fund schemes, including equity funds, hybrid funds, debt funds, solution-oriented schemes, and other types of mutual funds.

ICICI Prudential Mutual Fund was founded in 1993 as a joint venture between ICICI Bank and Prudential plc. It is the second-largest asset management company in India in terms of Assets Under Management (AUM). The company has a strong track record of performance and a commitment to customer service, winning numerous awards for its mutual fund schemes and overall performance.

NRIs must adhere to the Foreign Exchange Management Act (FEMA) guidelines and complete the Know Your Customer (KYC) process before investing in ICICI Prudential Mutual Fund schemes. They can invest through the ICICI Prudential Mutual Fund website, a distributor, or a dedicated platform for NRIs.

How to open an NRI account

ICICI Bank is one of the top private sector banks in India, with a presence in 17 other countries. NRIs can open an ICICI Bank NRI account at the nearest ICICI branch in India and abroad, or they can request to open an account online.

Opening an NRI Account in Person

If you are in India, you can apply for an ICICI NRI account by visiting the nearest branch of ICICI Bank. Here are the steps:

• Visit the bank and ask for an NRI account opening form at the help desk.
• The bank staff will help you fill out the account opening form with all the required information on NRI accounts.
• Once you have completed the form, you can submit it along with the required documents at the branch.
• Once the bank branch receives the completed form and supporting documents, it is sent to the processing center of ICICI Bank.
• If your information is correct and all the supporting documents are in order, your ICICI NRI account will be opened within 2 working days of receiving the form.

Opening an NRI Account Online

If you are overseas and don't have a branch nearby, you can follow these steps to apply for an ICICI NRI account online:

• Visit the NRI page of ICICI Bank's official website to fill out and submit the lead form.
• You will receive a phone call from a customer service representative to assist you with your application.
• The representative will help you fill out the form online and with documentation.
• Once you are ready with the form and have all documents, the bank will arrange for a Free Courier Pick-Up of your form and documents at your convenience.
• Once the courier is picked up, the turnaround time to receive these documents in India is 3 working days.
• If all the information is correct and all the supporting documents are in order, your NRI account will be opened within 5 to 7 working days of receiving the form.

Documents Required for ICICI NRI Account

• A photocopy of the applicant's passport
• Valid visa (work visa/residence visa or permit/dependent visa). Not applicable for PIOs holding a foreign passport.
• Overseas address proof (gas/electricity/telephone bill or bank statement) not over 3 months old.
• For those travelling abroad for the first time: Deputation/offer letter mentioning the overseas work address and Indian address proof.

The best ICICI mutual funds for NRIs

Non-Resident Indians (NRIs) can invest in ICICI mutual funds, but they must adhere to the Foreign Exchange Management Act (FEMA) guidelines. Here is a step-by-step guide on how NRIs can start investing in ICICI mutual funds:

Step 1: Set up an NRI Account

As per FEMA guidelines, after attaining NRI status, you cannot hold a regular resident savings account in India. You need to open a Non-Resident External (NRE) or Non-Resident Ordinary (NRO) account. Once your account is activated, you can start the process of investing.

Step 2: Complete your NRI KYC

To complete the Know Your Customer (KYC) process, you must submit the following documents:

• Overseas address proof: Water/electricity bill, postpaid mobile/internet bill, rent agreement, driving license, etc.
• Passport: Front and back
• Passport-size photograph

Your KYC application will be approved within 7 to 8 business days if all the details are correct.

Step 3: Onboarding

After completing the KYC process, you need to share the following details to finish the onboarding process and start investing:

• City and country of birth
• NRE/NRO bank account statement/cancelled cheque for the latest 3 months

Best ICICI Mutual Funds for NRIs:

• ICICI Prudential Balanced Advantage Fund Growth
• ICICI Prudential Bluechip Fund Growth
• ICICI Prudential Liquid Fund Growth
• ICICI Prudential Value Discovery Fund Growth
• ICICI Prudential Multi-Asset Fund Growth
• ICICI Prudential Equity & Debt Fund Growth
• ICICI Prudential Corporate Bond Fund Growth
• ICICI Prudential Asset Allocator Fund(FOF) Growth
• ICICI Prudential Short Term Fund Growth
• ICICI Prudential Equity Arbitrage Fund Regular Growth
• ICICI Prudential Savings Fund Growth
• ICICI Prudential India Opportunities Fund Regular Growth
• ICICI Prudential Money Market Fund Regular Growth
• ICICI Prudential Overnight Fund Regular Growth
• ICICI Prudential Flexicap Fund Regular Growth
• ICICI Prudential Ultra Short Term Fund Growth
• ICICI Prudential ELSS Tax Saver Fund Growth
• ICICI Prudential Technology Fund Growth
• ICICI Prudential All Seasons Bond Fund Growth
• ICICI Prudential Large & Mid Cap Fund Growth
• ICICI Prudential Multicap Fund Growth
• ICICI Prudential Floating Interest Fund Growth
• ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund Growth
• ICICI Prudential Nifty Next 50 Index Fund Growth
• ICICI Prudential Infrastructure Fund Growth
• ICICI Prudential Manufacturing Fund Growth
• ICICI Prudential US Bluechip Equity Fund Growth
• ICICI Prudential Bharat Consumption Fund Regular Cumulative
• ICICI Prudential NASDAQ 100 Index Fund Regular Growth
• ICICI Prudential Retirement Fund Hybrid Aggressive Plan Regular Growth
• ICICI Prudential Nifty Bank Index Fund Regular Growth

Please note that this list is not exhaustive, and it is always recommended to consult a financial advisor before making any investment decisions.

Tax implications of investing in ICICI mutual funds

Before investing in ICICI mutual funds, Non-Resident Indians (NRIs) must understand the tax landscape in India. The interest generated from ICICI mutual fund investments is subject to underlying tax laws, and NRIs should be aware of the tax implications to ensure compliance and optimize their tax liabilities. Here are some key considerations:

• Know Your Customer (KYC) Compliance: NRIs need to complete the KYC process before investing in ICICI mutual funds. This involves providing personal details, overseas address proof, and a copy of their passport.
• NRE/NRO Accounts: NRIs must invest through their Non-Resident External (NRE) or Non-Resident Ordinary (NRO) bank accounts. These accounts are specifically designed for NRIs and are essential for investing in ICICI mutual funds.
• Double Taxation Avoidance Agreement (DTAA): NRIs should familiarize themselves with the DTAA between India and their country of residence. This agreement helps prevent double taxation and can optimize tax liabilities.
• Regulatory Framework: It is crucial for NRI investors to comply with the regulatory framework governing mutual fund investments in India, including the Foreign Exchange Management Act (FEMA) guidelines.
• Tax on Interest: The interest generated from ICICI mutual fund investments is subject to taxation. NRIs should understand the applicable tax rates and any tax treaties between India and their country of residence to effectively manage their tax obligations.
• Capital Gains Tax: When NRIs redeem or sell their ICICI mutual fund units, they may be subject to capital gains tax. The tax treatment depends on the holding period, with short-term capital gains (less than 36 months) and long-term capital gains (more than 36 months) taxed at different rates.
• Tax Deducted at Source (TDS): TDS may apply to the redemption of mutual fund units. The TDS rate depends on the type of fund and the residency status of the investor. NRIs may need to provide additional documentation to claim a lower TDS rate or exemption if applicable.
• Tax Filing and Reporting: NRIs may have to report their ICICI mutual fund investments and any gains or losses on their tax returns in India and their country of residence. They should stay updated with the tax filing requirements and deadlines in both countries.
• Tax Planning: NRIs can consider tax-efficient investment strategies, such as investing in tax-saving mutual funds or utilizing tax-free investment avenues. Proper tax planning can help minimize tax liabilities and maximize returns.

In conclusion, understanding the tax implications of investing in ICICI mutual funds is essential for NRIs. By complying with the regulatory framework, staying informed about tax laws, and incorporating tax-efficient strategies, NRIs can make well-informed investment decisions and optimize their tax obligations.

How to invest in ICICI mutual funds

ICICI Prudential Mutual Fund is one of the leading asset management companies in India, with a wide range of mutual fund schemes catering to different investment needs. The company has a strong track record of performance and is committed to providing excellent customer service. Here is a step-by-step guide on how to invest in ICICI Mutual Funds:

Step 1: Complete your Know Your Customer (KYC)

Before investing in ICICI Mutual Funds, you need to complete your KYC process. This involves providing proof of identity and address. The list of valid documents includes:

• Proof of Identity: Aadhaar card, passport, voter ID card, driving license, or PAN card with a photograph.
• Proof of Address: Passport, voter ID card, ration card, registered lease or sale agreement of residence, driving license, flat maintenance bill, or insurance copy.

Step 2: Choose your Investment Platform

You can invest in ICICI Mutual Funds through various platforms, including:

• ICICI Prudential Mutual Fund's official website or mobile app: You will need to create an account and link your bank account. Then, search for the desired mutual fund scheme and enter the investment amount.
• Policybazaar's website: After creating an account, fill in your personal details and explore the range of ICICI Prudential Mutual Fund plans. You can then review the plan details, proceed with the purchase, and provide your KYC and payment information.
• ET Money platform: Sign up and choose from various ICICI Prudential Mutual Fund schemes at a lower expense ratio. You can also track your existing portfolio on this platform.
• A distributor: You can invest through a distributor, but this may result in higher expenses and lower returns due to the distributor's commission.

Step 3: Select your Investment Type

ICICI Prudential Mutual Fund offers different investment types to suit your needs:

• Lumpsum: A one-time investment option where you invest a fixed amount.
• SIP (Systematic Investment Plan): A periodic investment option where you invest a fixed amount at regular intervals (monthly, quarterly, etc.).

Step 4: Provide Payment Details

After selecting your investment type, you will need to provide your bank account details and choose your payment method. If you choose SIP, you will also need to set up a mandate for automatic payments.

Step 5: Finalize your Investment

Once you have completed the above steps and verified your KYC documents, your transaction will be processed, and you will receive a confirmation of your investment.

Additional Information for NRIs:

Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) can invest in ICICI Prudential Mutual Funds by following these additional steps:

• Set up an NRI account: As per FEMA guidelines, NRIs cannot use a regular resident savings account. You need to open an NRE or NRO account to start investing.
• Complete NRI KYC: Provide additional documents such as overseas address proof and passport details.
• Comply with Regulatory Framework: Ensure compliance with the Know Your Customer (KYC) process, invest through NRE/NRO accounts, and understand FEMA regulations for a smooth investment experience.

The benefits of ICICI life insurance for NRIs

ICICI Prudential Life Insurance offers a range of life insurance products tailored to meet the diverse needs of Non-Resident Indians (NRIs). Here are some of the key benefits of ICICI life insurance for NRIs:

Global Coverage:

NRIs can avail of global coverage under ICICI life insurance policies. This ensures that regardless of their location, their loved ones will receive a payout in their absence. This feature provides peace of mind and financial security for NRIs and their families.

Flexibility in Life Cover:

ICICI allows NRIs to choose a life cover that meets their family's specific needs and lifestyle requirements. This flexibility ensures that the insurance plan can replace the income of the policyholder and provide uninterrupted financial support for their dependents.

Savings and Investment Opportunities:

In addition to life coverage, ICICI's life insurance plans offer savings and investment options. These plans enable NRIs to grow their wealth over time and achieve their financial goals. The protection-plus-savings plans include Unit Linked (ULIP) and traditional savings/money-back plans.

Online Purchase and Premium Payment Options:

ICICI life insurance for NRIs can be conveniently purchased online. Premiums can be paid from anywhere in the world through online payment modes, including debit or credit cards. NRIs also have the option to pay premiums from their Non-Resident Ordinary (NRO) and Non-Resident External (NRE) accounts. Additionally, ICICI offers flexibility in payment frequency, with annual, semi-annual, or monthly payment options, as well as a single premium payment choice.

Tax Benefits:

Investing in ICICI life insurance policies offers tax advantages for NRIs. They can claim a deduction of up to ₹1.5 lakh on the premium paid under Section 80C of the Income Tax Act, 1961. Additionally, the insurance benefits received on maturity or death are exempt from tax under Section 10(10D) of the same act.

Variety of Plans:

ICICI offers a range of life insurance plans to cater to different needs, including term insurance, whole life insurance, ULIPs, endowment insurance plans, money-back insurance plans, child insurance plans, and retirement insurance plans. This variety allows NRIs to choose a plan that aligns with their specific financial goals and circumstances.

Peace of Mind:

Purchasing ICICI life insurance provides peace of mind for NRIs, knowing that their loved ones back home will remain financially secure even during uncertain times, such as job switches or lifestyle changes.

Frequently asked questions