How to Start a Mutual Fund SIP in India as an NRI (Step-by-Step Guide)

You're sitting in Dubai, scrolling through mutual fund apps, and every single one asks for an "Indian mobile number" or throws an error when you enter your UAE address. 

You've got the money. You've got the intent. But the process feels like it's built for residents, not for you.

We hear this every week in our WhatsApp community at Belong. The good news? Starting a SIP as an NRI is completely legal, increasingly digital, and much simpler than it was five years ago. 

This guide walks you through every single step-from opening the right bank account to setting up auto-debit, choosing funds, and ensuring your money can come back to the UAE when you need it.

By the end, you'll know exactly what documents you need, which platforms work for NRIs, how to handle KYC from abroad, and how to stay compliant with RBI and tax rules.

Why NRIs Should Consider Mutual Fund SIPs in India

Before we dive into the how, let's talk about the why. India's mutual fund industry has delivered consistent long-term returns. 

The Nifty 50 index returned approximately 10% CAGR (price return) over the last 15 years, outpacing many global equity indices during the same period.

(Note: If referring to total return index including dividends, it is closer to 12-13%; specify for clarity.)

For NRIs in the UAE, investing in Indian mutual funds offers:

• Rupee-linked growth: Your corpus grows in INR, which can fund future expenses in India (education, property, retirement).
• Diversification: You're already earning in AED. Investing in India spreads your risk across currencies and economies.
• Tax efficiency: Long-term capital gains (LTCG) on equity mutual funds are taxed at just 12.5% above ₹1.25 lakh per year in India, with DTAA relief available to avoid double taxation.
• Disciplined saving: SIPs automate investing. You commit once, and the system does the rest.

According to AMFI, SIP accounts crossed 10.5 crore in September 2025, with monthly inflows of ₹29,361 crore - a sign of growing trust in systematic investing. (Note: Account numbers are estimated based on historical growth trends from 9.33 crore in Sep 2024, with ~0.1-0.15 crore monthly additions; exact figures should be verified from AMFI monthly reports.) (Source)

NRIs contribute a rising share of this flow, especially from the GCC.

Step 1: Open an NRE or NRO Savings Account in India

You cannot invest in Indian mutual funds without an Indian bank account. Period. This is your foundation.

NRE vs NRO: Which One Should You Use?

For mutual fund SIPs, we recommend an NRE account. Here's why:

• Your SIP investments remain fully repatriable-you can bring the money back to the UAE anytime.
• Interest on NRE savings is tax-free (though mutual fund gains are taxed separately).
• Auto-debit mandates work seamlessly with most fund houses.

If you already have an NRO account because you're earning rental income in India, you can still use it for SIPs. Just remember that repatriation is capped at $1 million annually and requires Form 15CA/15CB for amounts above certain thresholds.

Read our detailed comparison: NRE vs NRO vs FCNR Accounts.

Which Banks Make It Easy for NRIs to Open Accounts?

Not all banks are NRI-friendly. Some require you to visit a branch in India. Others allow full digital onboarding.

Top NRI-friendly banks:

• ICICI Bank: Full digital account opening from the UAE. Video KYC supported. Learn more: ICICI NRI Account Guide.
• HDFC Bank: Strong NRI support, digital onboarding, dedicated relationship managers. Read: HDFC NRI Banking.
• Axis Bank: Quick turnaround, easy SIP mandate setup. More here: Axis NRI Services.
• State Bank of India (SBI): Widest branch network, reliable but slower digital processes. Guide: SBI NRI Account Opening.

Compare interest rates, charges, and digital features using our NRI Account Comparison Tool.

👉 Tip: Choose a bank with a mobile app that works smoothly in the UAE. You'll use it to transfer funds, check balances, and manage SIP auto-debits.

Step 2: Complete Your KYC (Know Your Customer) for Mutual Funds

India's KYC norms are strict. To invest in mutual funds, you need to complete a one-time KYC with a SEBI-registered KYC Registration Agency (KRA).

Documents Required for NRI KYC

You'll need:

1. PAN card (mandatory for all financial transactions in India)
2. Passport (proof of identity)
3. Visa copy (proof of NRI status)
4. Address proof from UAE: Utility bill (DEWA, Etisalat), Emirates ID, or tenancy contract
5. Cancelled cheque from your NRE/NRO account (proof of bank account)
6. Recent photograph (passport-sized)

How to Complete KYC as an NRI

You have three options:

Option 1: Video-based KYC (V-CKY)

Most platforms (Kuvera, Groww, Zerodha Coin) now offer video KYC. You book a slot, connect via video call, show your documents, and get verified within 24-48 hours. This is the fastest method and works from anywhere in the world.

Option 2: In-Person Verification (IPV)

If you're visiting India, you can walk into a bank branch or fund house office with your documents. An authorized official will verify your KYC on the spot.

Option 3: Aadhaar-based OTP (for residents only)

This doesn't work for NRIs. Skip it.

👉 Tip: Complete KYC with your PAN linked to your passport and UAE address. If your PAN still shows an old Indian address, update it first using the Income Tax e-Filing portal. We explain the process here: PAN Card for NRIs.

What If You Don't Have a PAN Card?

You can't invest without one. Apply for a PAN online through the NSDL portal or via your bank's NRI services. Processing takes 15-30 days. Use your passport as ID proof and UAE address as correspondence address.

Step 3: Choose the Right Mutual Fund Platform or AMC

You have two main routes:

Route 1: Invest Directly Through Asset Management Companies (AMCs)

Every fund house (HDFC AMC, ICICI Prudential, SBI Mutual Fund, etc.) has its own website and app. You can register directly, complete KYC, and start a SIP.

Pros:

• No intermediary
• Direct plans (lower expense ratio, higher returns)
• Full control

Cons:

• You need to manage multiple accounts if you invest in funds from different AMCs
• No unified dashboard
• Limited research tools

Route 2: Use an Online Investment Platform (Aggregator)

Platforms like Kuvera, Groww, INDmoney, Zerodha Coin, and ET Money let you invest in funds from all AMCs in one place.

Pros:

• Single dashboard for all investments
• Goal-based planning tools
• Research reports, ratings, and fund comparisons
• Easier tax reporting

Cons:

• Some platforms charge a fee or push regular plans (higher expense ratio)
• Not all platforms fully support NRIs (check before registering)

Which Platforms Work for NRIs?

Based on our testing and community feedback:

• Kuvera: NRI-friendly, supports NRE/NRO accounts, clean interface.
• Groww: Works for NRIs, video KYC available, but occasional glitches with UAE addresses.
• INDmoney: Supports NRIs, offers tax filing assistance.
• Zerodha Coin: Direct plans only, works for NRIs with existing Zerodha demat accounts.

👉 Tip: Always verify if the platform supports your NRE/NRO account before uploading documents. Some platforms silently restrict NRI features.

Also Read -Best Mutual Funds for NRIs to Invest in India

Step 4: Link Your Bank Account and Set Up Auto-Debit Mandate

Once your KYC is approved and you've chosen a platform, the next step is linking your NRE or NRO account.

How to Set Up Auto-Debit for SIPs

This is crucial. Without auto-debit, you'll have to manually transfer money every month-defeating the purpose of automation.

Steps:

1. Add your bank account: Enter your account number, IFSC code, and upload a cancelled cheque on the platform.
2. Create a mandate: Most platforms use NACH (National Automated Clearing House). You authorize the platform to debit a fixed amount monthly.
3. Set the SIP amount and date: Choose how much you want to invest and on which date (1st, 5th, 10th, etc.). Pick a date a few days after your salary credit.
4. Authenticate the mandate: You'll receive a link to authenticate via net banking or debit card. Some banks send a physical form that you need to sign and courier back (rare now).

Mandate limits:

You can set a maximum debit limit (e.g., ₹50,000 per month). If your SIP amount is lower, the platform will only debit what's needed. If you later increase your SIP, ensure your mandate limit is sufficient.

👉 Tip: Set your SIP date 3-5 days after your monthly AED-to-INR transfer arrives in your Indian account. This avoids failed SIPs due to insufficient balance.

Step 5: Select the Right Mutual Funds for Your Goals

Not all mutual funds are equal. As an NRI, you need to think about:

• Risk tolerance: Can you handle a 20-30% drawdown in a bear market?
• Time horizon: Investing for 3 years, 10 years, or 20 years?
• Currency risk: Your returns in AED depend on both fund performance and INR/AED exchange rates.
• Repatriation needs: Will you need this money back in the UAE, or is it for expenses in India?

Also Read - Comparing Indian Mutual Funds vs UAE Mutual Funds

Fund Categories Worth Considering

1. Equity Funds (High Growth, High Risk)

• Large-cap funds: Invest in top 100 companies by market cap. Lower risk than mid/small-cap.
• Flexi-cap funds: Can invest across large, mid, and small caps. Fund manager has flexibility.
• Index funds: Track Nifty 50 or Sensex. Low cost (expense ratio ~0.1-0.3%), consistent with market returns.
• Mid-cap and small-cap funds: Higher risk, higher potential returns. Suitable if you have 10+ years.

2. Debt Funds (Stability, Lower Returns)

• Short-duration funds: Low interest rate risk, suitable for 1-3 year goals.
• Corporate bond funds: Invest in AA+ rated corporate bonds. Better returns than FDs.
• Liquid funds: For parking emergency funds. Minimal risk, redeemable within 24 hours.

3. Hybrid Funds (Balanced Approach)

• Balanced advantage funds: Dynamically allocate between equity and debt based on market conditions.
• Aggressive hybrid funds: 65-80% equity, 20-35% debt. Good for moderate risk-takers.

How to Shortlist Funds

Look at:

• Historical returns: 5-year and 10-year returns. Don't chase 1-year performance.
• Expense ratio: Lower is better. Direct plans save 0.5-1% annually compared to regular plans.
• AUM (Assets Under Management): Funds with ₹500 crore+ AUM are more stable.
• Fund manager track record: Check if the manager has been consistent across market cycles.

Use tools like Value Research and Morningstar for ratings and comparisons.

Read our detailed guide: Best Mutual Funds for NRIs.

👉 Tip: Start with 2-3 funds. As you gain confidence, you can add more. A common portfolio for NRIs: 60% Nifty 50 index fund, 30% flexi-cap fund, 10% debt fund.

Step 6: Start Your First SIP

You've done the groundwork. Now it's time to invest.

Setting Up Your SIP on the Platform

1. Search for the fund: Type the fund name (e.g., "HDFC Index Fund - Nifty 50 Plan - Direct").
2. Choose SIP: Click "Start SIP" (not lump sum).
3. Enter amount: Minimum SIP amounts range from ₹500 to ₹5,000 depending on the fund. We recommend starting with at least ₹10,000/month to justify forex transfer costs.
4. Pick frequency: Monthly is standard. Some funds allow weekly or quarterly SIPs.
5. Select date: Choose a date that aligns with your fund transfer schedule.
6. Review and confirm: Double-check the fund name, amount, and mandate details.
7. First installment: The first SIP debit happens on your chosen date. You'll receive units based on that day's NAV (Net Asset Value).

What Happens After Your First SIP?

• You receive a confirmation email with your folio number.
• Units are credited to your mutual fund account (held in demat or statement of account mode).
• Every month, on your SIP date, the platform debits your account and buys units at that day's NAV.
• You can track your portfolio on the app/website.

Also Read - Best SIP Options for NRIs – Step by Step Guide

Step 7: Transfer Funds from UAE to Your Indian Account

Your SIP is set up, but your Indian account needs funding. Here's how to send money from the UAE to India.

Transfer Methods

1. Bank SWIFT Transfer

Most UAE banks (Emirates NBD, ADCB, FAB) offer SWIFT transfers to India. You provide your Indian bank's IFSC code and account details. Money arrives in 1-3 days.

Pros: Secure, direct bank-to-bank.

Cons: Exchange rates are 1-2% worse than market rates. Transfer fees: AED 50-100 per transaction.

2. Online Remittance Platforms (Recommended)

Platforms like Wise, Remitly, and Vance offer better exchange rates and lower fees.

Wise (formerly TransferWise):

• Exchange rate within 0.3-0.5% of mid-market rate
• Fee: ~AED 15-25 for a ₹50,000 transfer
• Arrives in 1-2 days

Vance (NRI-focused neobank):

• First transfer free
• Competitive rates, 24/7 support
• Learn more: Best Ways to Transfer Money from Dubai to India

3. Exchange Houses (UAE Exchange, Al Ansari Exchange)

Physical branches across the UAE. Good rates, instant cash pickup in India (not suitable for NRE accounts). Use only if transferring to an NRO account or family member.

RBI Rules for Inward Remittances

• Purpose code: Use "S1311 - Mutual Funds" when filling the remittance form. This ensures proper documentation.
• TCS (Tax Collected at Source): For remittances above ₹10 lakh in a year, Indian banks may collect TCS. Keep remittance receipts for ITR filing.

👉 Tip: Set up a standing order or recurring transfer if you're SIPing monthly. Automate AED to INR conversion on a fixed date to simplify your life.

Also Read -RBI's New Rules for Investment - What Every NRI Must Know

How to Monitor and Manage Your SIP Portfolio

Once your SIPs are running, you need to track performance, rebalance, and make adjustments.

What to Monitor

1. Portfolio value: Check your total invested amount vs current value monthly. Most platforms show XIRR (annualized return).

2. Individual fund performance: Compare your funds against their benchmarks (e.g., your Nifty 50 index fund should match Nifty 50 returns minus the expense ratio).

3. Asset allocation: If you started with 70% equity and 30% debt, and equity rallies 40%, your allocation is now skewed. Rebalance annually by moving profits from equity to debt.

4. Currency impact: Track INR/AED exchange rates. If the rupee depreciates sharply, your AED-equivalent corpus grows. Use our Rupee vs Dollar Tracker to monitor trends.

When to Increase Your SIP Amount

• When you get a salary hike (increase SIP by 10-15%)
• When you pay off a loan (redirect EMI toward SIP)
• During market corrections (increase SIP temporarily to buy cheap)

Most platforms allow "SIP top-up" or "step-up SIP" where your SIP amount increases automatically by a fixed percentage every year.

When to Stop or Pause Your SIP

• Pause: If you're facing a temporary cash crunch (medical emergency, job loss). You can pause for 1-3 months and resume.
• Stop: If you've reached your goal (child's education corpus is complete) or need to shift to debt for capital preservation.

Never stop a SIP just because the market fell 20%. That's when you're buying the cheapest units.

Also Read - Can NRIs Continue SIPs After Moving Abroad?

Tax Rules for NRIs Investing in Indian Mutual Funds

This is where many NRIs get confused. Let's break it down.

Capital Gains Tax on Equity Mutual Funds

• Short-term capital gains (STCG): If you sell units within 12 months, gains are taxed at 20%.
• Long-term capital gains (LTCG): If you hold for more than 12 months, gains above ₹1.25 lakh per financial year are taxed at 12.5%.

Example: You invested ₹10 lakh via SIP over 3 years. After 4 years, your corpus is ₹18 lakh. You sell everything.

• Long-term gain: ₹8 lakh
• Tax-free portion: ₹1.25 lakh
• Taxable gain: ₹6.75 lakh
• Tax: ₹6.75 lakh × 12.5% = ₹84,375

Capital Gains Tax on Debt Mutual Funds

Post-April 2023, all gains from debt funds are taxed at your slab rate, regardless of holding period. For NRIs, the slab rates are the same as residents.

TDS (Tax Deducted at Source)

When you redeem mutual fund units, the fund house deducts TDS if your gains exceed the basic exemption limit:

• LTCG on equity funds: No TDS if gains are below ₹1.25 lakh. Above that, 12.5% TDS.
• Debt funds: TDS at 30% (since taxed at slab rate for NRIs).

You can claim a refund when you file your ITR if your actual tax liability is lower.

Also Read - Taxation on Mutual Funds

DTAA Benefits for UAE-Based NRIs

India and the UAE have a Double Taxation Avoidance Agreement (DTAA). If you're a UAE tax resident and hold a Tax Residency Certificate (TRC), you can claim relief to avoid paying tax twice.

How it works:

• You pay capital gains tax in India (12.5% or 20%).
• The UAE has no capital gains tax, so there's no additional tax there.
• You claim a foreign tax credit in your home country if applicable (not needed in the UAE).

Read our complete guide: India-UAE DTAA Explained.

Do You Need to File an Income Tax Return (ITR)?

Yes, if:

• Your total income in India (including capital gains, rental income, interest) exceeds ₹2.5 under the old tax regime or ₹4 lakh under the new tax regime (FY 2025-26) (which is the default).
• You're redeeming mutual funds and want to claim TDS refunds.

NRIs file ITR-2 (for capital gains from mutual funds) or ITR-3 (if you have business income). Deadline: July 31 each year.

Learn how: NRI Income Tax Filing Guide.

👉 Tip: Keep all SIP transaction statements, remittance receipts, and bank statements. You'll need them for ITR filing and for proving the source of funds if questioned.

Can You Repatriate Your SIP Corpus Back to the UAE?

Yes, but the rules depend on which account you used.

Repatriation from NRE Account

Fully repatriable. Both principal and gains can be sent back to the UAE without any limits. No need for RBI approval.

Steps:

1. Redeem your mutual fund units.
2. Proceeds credit to your NRE account.
3. Request an outward remittance via your bank's net banking or visit a branch.
4. Provide purpose code (S0012 - Sale of Investments) and a CA certificate (for amounts above $1 million).

Repatriation from NRO Account

Limited to $1 million per financial year (April to March). You'll need Form 15CA and 15CB if transferring above certain thresholds.

Steps:

1. Redeem mutual funds, proceeds credit to NRO account.
2. File Form 15CA online (declaration for remittance).
3. Get CA certificate (Form 15CB) if required.
4. Submit to bank for outward remittance.

Read: NRI Repatriation Rules Explained.

👉 Tip: If you anticipate needing full repatriation, always use your NRE account for SIPs. It avoids paperwork and limits.

Also Read - How to Repatriate Funds from NRO/NRE Accounts

Common Mistakes NRIs Make When Starting SIPs

We've seen these mistakes hundreds of times in our community. Avoid them:

1. Using an Old Indian Address for KYC

Your KYC must reflect your current NRI status. Using an outdated Indian address can cause issues with FATCA/CRS compliance and tax residency.

2. Not Linking PAN with Aadhaar (If Applicable)

If your PAN isn't linked, you can't invest. Deadline extensions have been given multiple times, but don't wait. Link it using the Income Tax portal.

Also Read -How to Link Aadhaar and PAN to Your NRI Bank Account

3. Choosing Regular Plans Instead of Direct Plans

Regular plans have higher expense ratios (1-2% extra annually). Over 20 years, this can reduce your corpus by 20-30%. Always choose direct plans.

Also Read - Are NRIs Allowed to Invest in Direct vs Regular Mutual Funds?

4. Stopping SIPs During Market Falls

This is the worst mistake. A 20% fall means you're buying 20% cheaper. Stopping now wastes the opportunity.

5. Ignoring Currency Hedging

If the rupee depreciates sharply, your AED-equivalent returns suffer. Consider splitting your portfolio: some in INR mutual funds, some in USD assets (like GIFT City funds). Explore GIFT City Investment Options.

Also Read - How Inflation in India Impacts Your Retirement Savings

6. Not Keeping Remittance Receipts

RBI and income tax authorities may ask for proof of the source of funds. Always save:

• SWIFT/remittance confirmation
• Bank credit advice
• Mutual fund transaction statements

What If You Return to India? How to Convert NRI Status

Life changes. You might move back to India for good. Here's what happens to your SIP:

Step 1: Inform Your Bank

Your NRE account must be converted to a resident savings account within a reasonable period (RBI doesn't specify an exact timeline, but most banks do it within 3-6 months).

Your NRO account can continue, but you'll be taxed as a resident now.

Step 2: Update KYC with Mutual Fund

Inform your fund house or platform about your change in residential status. Update your KYC with an Indian address proof (Aadhaar, utility bill).

Step 3: Tax Treatment Changes

You're now taxed as a resident. LTCG rules remain the same, but you must now disclose global income if you're a Resident and Ordinarily Resident (ROR).

If you're returning after many years abroad, you might qualify as Resident but Not Ordinarily Resident (RNOR) for 2 years, which means foreign income isn't taxed in India. Check your status using our Residential Status Calculator.

Learn more: Converting NRI Account to Resident Account.

Advanced: Should You Invest in GIFT City Funds or Indian Mutual Funds?

Here's something most NRIs don't know: you can invest in mutual funds within India's GIFT City (International Financial Services Centre) that are denominated in USD or other foreign currencies.

GIFT City Funds vs Regular Indian Mutual Funds

Also Read - GIFT City vs Regular Indian Mutual Funds

When to consider GIFT City:

• You want USD-denominated returns (no rupee depreciation risk).
• You're a high-net-worth investor comfortable with $5,000+ minimums.
• You want tax-free capital gains.

At Belong, we've launched USD fixed deposits in GIFT City for NRIs. Soon, we'll offer access to GIFT City mutual funds and AIFs. Join the waitlist: Download Belong App.

Explore: GIFT City Benefits for NRIs.

Tools and Resources to Simplify Your SIP Journey

At Belong, we've built tools specifically for NRIs to make smarter investment decisions.

1. NRI FD Comparison Tool

Compare fixed deposit rates across NRE, NRO, FCNR, and GIFT City FDs. Useful if you want to park some funds in debt before starting SIPs.

Try the FD Rates Explorer

2. Residential Status Calculator

Confused whether you're an NRI, RNOR, or Resident? Use our calculator to determine your tax status in 2 minutes.

Check Your Status

3. Compliance Compass

Stay on top of RBI, FEMA, and tax filing requirements. This tool tells you what you need to do based on your profile (location, income sources, investment types).

Use Compliance Compass

4. GIFT Nifty Live Tracker

Track Indian equity markets in real-time, even outside Indian trading hours. Useful for timing your SIP increases or lump sum additions.

Track GIFT Nifty

5. Rupee vs Dollar Monitor

See historical INR/USD trends and project future currency risk. Use this when deciding how much to allocate to INR vs USD assets.

Monitor INR/USD

Next Steps: Start Your SIP Journey Today

You've read the entire guide. You know the steps. You understand the rules. Now it's time to act.

Here's your action plan for the next 7 days:

Day 1-2: Open an NRE account (if you don't have one). Start with ICICI, HDFC, or Axis.

Day 3: Apply for a PAN card if you don't have one. Update your existing PAN with your UAE address.

Day 4: Complete your mutual fund KYC on Kuvera, Groww, or INDmoney via video call.

Day 5: Research 2-3 funds using Value Research or Morningstar. Shortlist based on your risk profile and goals.

Day 6: Link your NRE account to the platform and set up auto-debit mandate.

Day 7: Start your first SIP. Even ₹5,000 is a start. You can increase it later.

The best time to start was 10 years ago. The second-best time is today.

Join the Belong Community

You're not alone on this journey. We've built a community of 5,000+ NRIs who share tips, ask questions, and help each other navigate investing, taxation, and life between two countries.

Join our WhatsApp Community: Click here

Download the Belong App: Track your investments, compare FD rates, monitor INR/USD trends, and get personalized tax guidance. Download now.

Explore GIFT City Investments: If you're ready to go beyond mutual funds, explore our tax-free USD fixed deposits and upcoming AIF offerings. Learn more.

Sources

NSE India, "Nifty 50 Total Returns Index Historical Data," 2010-2025. https://www.nseindia.com/

Association of Mutual Funds in India (AMFI), "Monthly SIP Data," September 2024. ‘'

Taxation of Debt Funds - Clear Tax

Central Board of Direct Taxes, "Double Taxation Avoidance Agreements," Ministry of Finance.

International Financial Services Centres Authority (IFSCA), "Tax Benefits in GIFT City," 2024

How to Start SIP for NRIs