How to Start a SIP From Abroad - Step by Step

A software engineer in our Belong WhatsApp community recently shared this: "I tried starting a SIP from Dubai. Spent three weekends on it. KYC got rejected twice.

Auto-debit didn't work. I gave up and put everything back in my UAE savings account."

He's not an outlier. Starting a SIP from abroad should take a week.

For most NRIs, it takes a month or more because nobody lays out the full process honestly.

Every guide says "open NRE account, do KYC, start SIP." Three steps. Simple.

Except it's not. The NRE account takes 7-10 days.

KYC needs a video call that fails if your Indian number isn't active. Some fund houses won't accept NRIs from certain countries.

And the auto-debit mandate? That's a whole separate battle.

This guide walks you through every step as it actually happens when you're sitting in Dubai, London, or New York trying to set this up.

No shortcuts. No skipped details. Just the real process, including the parts that trip people up.

Before You Start: The Readiness Checklist

Don't jump into Step 1 until you have these five things ready. Missing even one will stall the process.

Indian PAN card: This is non-negotiable. Every mutual fund transaction in India requires a Permanent Account Number.

If you had one as a resident, it's still valid. If you've lost it, you can reprint it online. If you never had one, apply through NSDL or UTIITSL. Processing takes 15-20 days for NRIs (Source: NSDL e-Gov).

Valid Indian passport or OCI card: Your passport is your primary identity document for NRI KYC. Make sure it's not expired. OCI cardholders can also invest in Indian mutual funds under FEMA regulations.

Active Indian mobile number: You'll need this for OTPs during KYC, bank transactions, and platform logins. If your old Indian SIM is deactivated, get a new one during your next India visit or ask a family member to get a prepaid connection in your name.

Some banks also accept UAE numbers, but many AMC platforms still require an Indian number.

Overseas address proof: A UAE residence visa, utility bill, or bank statement showing your overseas address. This must match the address you provide during KYC.

A clear goal for the SIP: This isn't paperwork. It's the most important item. Are you investing for retirement in India?

Your child's education? Building long-term wealth? Your goal determines which account you use, which fund category you pick, and how much you invest monthly.

👉 Tip: Gather all documents as scanned PDFs on your phone before you begin. You'll need them multiple times across different platforms. Having them ready saves hours.

Step 1: Open the Right NRI Bank Account

You cannot invest in Indian mutual funds without an Indian bank account. And not just any account. It must be either an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account.

NRE or NRO: Which One for Your SIP?

This is the first decision that shapes everything downstream.

Choose NRE if your money is coming from abroad (your salary in UAE) and you want full repatriation.

That means when you eventually redeem your mutual fund units, you can send the entire amount, both your principal and gains, back to the UAE without any RBI approval or dollar limit.

For most NRIs starting a fresh SIP with foreign earnings, NRE is the right choice.

Choose NRO if you're investing Indian income like rental earnings, dividends, or pension from India.

Repatriation from NRO is capped at USD 1 million per financial year under RBI's Liberalised Remittance Scheme (Source: RBI Master Circular on Remittances), and it involves additional paperwork including Form 15CA/15CB and a CA certificate.

For a detailed comparison, read our NRE vs NRO savings account guide.

Which Bank to Choose?

Not every bank makes NRI account opening easy from abroad. Some require you to visit a branch in India. Others handle everything digitally with video KYC.

Banks with strong NRI digital onboarding from the UAE include ICICI Bank, HDFC Bank, Axis Bank, and SBI. Each has different minimum balance requirements, charges, and app quality.

When choosing, prioritize three things. First, a mobile app that works smoothly from the UAE (some bank apps are geo-restricted).

Second, easy auto-debit mandate setup (you'll need this for SIP). Third, low or no charges for NRI accounts.

Compare NRI account features, minimum balances, and fees across banks before committing.

Timeline: 5-10 working days for full account activation, depending on the bank and how quickly your documents clear.

👉 Tip: Open both NRE and NRO accounts upfront, even if you only plan to use one for SIPs. Having both gives you flexibility later, especially if you start receiving rental income or other India-sourced earnings.

Step 2: Complete Your NRI KYC

KYC (Know Your Customer) is the gatekeeping step. Until SEBI's KYC requirements are met, no AMC will let you invest a single rupee.

What NRI KYC Involves

You'll register your KYC with a KYC Registration Agency (KRA) like CAMS, KFintech, or CVL. Once done, it's centralized.

You won't need to repeat it for every fund house.

Documents you need to submit:

A completed KYC form with your NRI status clearly marked. A self-attested copy of your passport (photo page + address page).

Your PAN card copy. Overseas address proof (visa, utility bill, or bank statement). A recent passport-sized photograph. A FATCA/CRS self-declaration form (this declares your tax residency).

How to Complete KYC From Abroad

Online Video KYC (fastest route): Most platforms now offer video-based In-Person Verification (IPV), which SEBI mandates.

You schedule a video call, show your original passport, answer a few questions, and the agent records the session. This takes 5-10 minutes when it works.

The common problem: if your Indian mobile number is inactive, OTP verification fails. Some platforms accept UAE numbers. Others don't. Test this before scheduling.

Through your NRI bank: Some banks like ICICI and HDFC complete KYC as part of the account opening process.

If your bank offers this, it's the smoothest route because one video call handles both bank account and KYC.

Through an investment platform: Platforms like MFCentral, Kuvera, and Groww offer NRI KYC flows.

The experience varies. Some work seamlessly from abroad. Others have glitches with overseas addresses or phone numbers.

Physical route (if all else fails): Get your KYC documents attested by the Indian consulate or embassy in your country, or by an authorised official at an overseas branch of an Indian bank.

Courier the attested documents to the KRA or your bank. This takes 2-3 weeks but works when digital options fail.

The Aadhaar Question

Aadhaar is not mandatory for NRIs to complete mutual fund KYC (Source: SEBI Circular on KYC). You can use your passport as the primary identity document.

However, SEBI has required all KYC records to be "validated" (linked with Aadhaar or verified via DigiLocker) by April 30, 2026.

For NRIs without Aadhaar, SEBI has provided relaxations. Your KYC status as "Registered" remains valid, but check with your platform for any updates.

Timeline: 3-7 working days for KYC approval after document submission. Rejections (usually due to unclear scans or address mismatches) add another 5-7 days.

👉 Tip: After completing KYC, check your status on the KRA website (like cvlkra.com or camskra.com) by entering your PAN. Don't proceed to the next step until the status shows "KYC Verified" or "Registered." Many NRIs skip this check and face delays later when trying to invest.

Step 3: Choose Your Investment Platform

You have three routes to start a SIP. Each has trade-offs.

Route 1: Directly Through the AMC Website

You go to the website of the mutual fund company (like SBI MF, HDFC MF, or ICICI Prudential MF) and invest directly.

You get Direct plans, which have lower expense ratios than Regular plans. But you'll need to manage separate logins for each AMC if you invest across multiple fund houses.

Route 2: Through an Online Mutual Fund Platform

Platforms like MFCentral, Kuvera, Groww, or INDmoney aggregate multiple AMCs in one place.

You invest in Direct plans, manage all your SIPs from a single dashboard, and get consolidated reporting.

Not all platforms support NRI accounts equally. Some restrict NRE-linked transactions. Test before committing.

Route 3: Through a Distributor or Advisor

If you prefer guidance, you can invest through a SEBI-registered advisor or a mutual fund distributor.

You'll get Regular plans (slightly higher expense ratio because it includes the distributor's commission). The trade-off is hand-holding: someone manages your KYC, mandate setup, and fund selection.

For NRIs unfamiliar with Indian mutual fund regulations, this can be worth the extra cost.

Explore Belong's mutual fund tools to compare funds and track your investments.

The US/Canada NRI Restriction

This is the biggest roadblock that most guides gloss over.

Due to FATCA (Foreign Account Tax Compliance Act), many Indian AMCs don't accept investments from NRIs based in the US or Canada.

As of 2025, approximately 10-15 AMCs accept US/Canada NRIs, including Aditya Birla Sun Life, SBI MF, UTI MF, ICICI Prudential, Nippon India, PPFAS, Tata MF, and Sundaram MF (Source: Zerodha Varsity, Sep 2025).

Some require offline applications only. Others accept online transactions with additional FATCA declarations.

If you're in the US, also be aware that Indian mutual funds are classified as PFICs (Passive Foreign Investment Companies) under US tax law.

This creates punitive tax treatment unless you make specific elections. Consult a cross-border tax advisor before investing.

NRIs in the UAE, UK, Singapore, Australia, and most other countries face no such restrictions. All AMCs accept investments from these jurisdictions.

👉 Tip: If you're a UAE-based NRI, you're in the easiest position globally to start SIPs in India. No FATCA complications, no income tax in your resident country, and DTAA benefits that protect you from double taxation. Take advantage of this.

Step 4: Select the Right Mutual Funds

This is where many NRIs freeze. There are 1,500+ mutual fund schemes in India. Picking the right ones doesn't need to be overwhelming if you follow a framework.

Match the Fund to Your Goal

For long-term wealth building (7+ years): Equity funds. Specifically, start with a diversified flexi-cap or large-cap fund.

These give broad market exposure without concentrating risk in one sector.

Indian equity markets have delivered 12-15% annualised returns over 10+ year periods historically, though past performance doesn't guarantee future returns (Source: NSE Nifty 50 historical data).

For medium-term goals (3-5 years):Hybrid or balanced advantage funds. These automatically adjust between equity and debt, reducing volatility while maintaining reasonable growth.

For conservative allocation:Debt mutual funds or liquid funds for short-term parking. These are lower risk but also lower return.

Direct vs Regular Plans

Direct plans have lower expense ratios (typically 0.5-1% less than Regular plans) because there's no distributor commission.

Over 10-15 years, this difference compounds significantly. A 0.75% expense difference on a ₹10,000 monthly SIP over 15 years at 12% returns means roughly ₹4-5 lakh more in your pocket with Direct plans.

If you're comfortable selecting funds yourself, always choose Direct. If you need advisory support, the Regular plan cost is the price of that guidance.

How Many Funds?

Don't over-diversify. Three to four funds covering different categories is enough for most NRIs. A common allocation:

40% in a flexi-cap or large-cap equity fund (core holding). 30% in a mid-cap fund (growth kicker). 20% in a balanced advantage fund (stability buffer). 10% in an international fund (geographic diversification).

Read our complete guide on how to build a mutual fund portfolio for detailed allocation strategies.

👉 Tip: Always choose the "Growth" option, not IDCW (Income Distribution cum Capital Withdrawal). Growth reinvests your gains, allowing compounding to work. IDCW pays out periodically and triggers TDS each time. For NRIs focused on long-term wealth, Growth is almost always the better choice.

Step 5: Set Up the Auto-Debit Mandate

This is the most overlooked and most frustrating step. A SIP without a working auto-debit mandate is just a one-time investment with extra steps.

What Is a Mandate?

A mandate is an authorization you give your bank to auto-debit a specified amount on a specified date each month.

It's registered through NACH (National Automated Clearing House), managed by NPCI (Source: NPCI).

How to Set It Up

When you start a SIP on any platform, you'll be asked to register a mandate. The process differs by platform.

E-mandate via net banking: Log into your NRE/NRO bank's net banking, approve the mandate request, and it's registered. This is the fastest route. Processing takes 1-3 working days.

Physical mandate: Some banks and platforms require a signed physical mandate form. You fill it out, sign it exactly as per your bank records, and courier it to the platform or AMC.

This takes 10-15 working days to process.

UPI mandate: Available for some NRO accounts but generally not supported for NRE accounts as of 2025. NRIs with NRE accounts should use net banking or physical mandates.

Common Mandate Problems NRIs Face

Problem 1: Mandate rejection due to name mismatch. Your name on the bank account must exactly match your name on the PAN card and KYC records.

Even a middle name discrepancy ("Ravi Kumar" vs "Ravi K.") causes rejection. Fix this before starting.

Problem 2: Bank doesn't support NACH mandate on NRE accounts. A few smaller banks don't process NACH mandates on NRE accounts. Confirm with your bank before setting up SIPs.

The major NRI-friendly banks (ICICI, HDFC, Axis, SBI) support this.

Problem 3: Mandate amount too low. Set your mandate ceiling higher than your current SIP amount. If you plan to SIP ₹10,000/month now but might increase to ₹25,000 later, register the mandate for ₹50,000.

You can always debit less than the mandate limit, but you can't debit more without registering a new one.

Timeline: 1-15 working days depending on whether you use e-mandate or physical mandate.

👉 Tip: After your mandate is approved, do a test SIP of ₹500 in a liquid fund. If the auto-debit works and units are allocated, your pipeline is clean. Then cancel that SIP and start your real ones. This one test saves weeks of debugging later.

Step 6: Fund Your NRE Account and Start the SIP

Your SIP debits from your NRE/NRO account. That account needs to have enough balance on the SIP date each month.

How to Fund Your NRE Account From the UAE

Transfer money from your UAE bank to your NRE account via SWIFT/wire transfer. Use a reliable money transfer service for better exchange rates than your bank's default.

For regular SIP funding, set up a recurring transfer from your UAE bank to your NRE account. Time it so the money arrives 3-5 days before your SIP debit date. Banks typically take 1-2 working days for SWIFT transfers to credit.

Compare the best exchange rates across transfer services. A 0.5% better rate on a monthly transfer of AED 5,000 saves you roughly AED 300 per year.

Setting the SIP Date

Most AMCs offer SIP dates on the 1st, 5th, 10th, 15th, 20th, or 25th of each month. Pick a date that gives you a buffer after your UAE salary arrives and after the transfer hits your NRE account.

If your salary comes on the 25th and the SWIFT transfer takes 2-3 days, set your SIP date for the 5th or 10th of the following month.

How Much to Start With?

Most funds allow SIPs starting at ₹500 per month. But for NRIs, we recommend at least ₹5,000-10,000 per month to justify the effort and transfer costs.

If you're new to mutual funds and cautious, start with ₹5,000. Run it for 6 months. See how the process works. Then increase. The step-up SIP option lets you automatically increase your SIP amount by a fixed percentage each year.

What Happens Once the SIP Starts

On your selected date each month, the platform or AMC sends a debit request to your bank via NACH.

The amount is debited from your NRE/NRO account. Mutual fund units are allocated at that day's NAV (Net Asset Value). You receive an email confirmation and the units reflect in your Consolidated Account Statement (CAS), which CAMS and KFintech email you monthly.

That's it. Once set up, it runs on autopilot. That's the beauty of SIP. You commit once, and the system does the rest.

The Tax Picture: What NRIs Need to Know

This is the part most SIP guides skip or oversimplify. And it's the part NRIs care about most.

TDS on Mutual Fund Redemption

When you redeem (sell) your mutual fund units, the AMC deducts TDS (Tax Deducted at Source) before crediting your account.

This only happens at the time of redemption, not during the SIP accumulation phase.

(Source: Finance Act 2024, Income Tax Act Sections 111A, 112A, 112)

The TDS rates for NRIs are higher than what residents face. This is the biggest practical difference. The AMC deducts TDS at the time of redemption. You can claim a refund of excess TDS by filing an income tax return (ITR) in India.

Do You Need to File ITR in India?

Yes, if your total Indian income (including capital gains from mutual fund redemptions, rental income, and interest income from NRO accounts) exceeds ₹4 lakh under the new tax regime for FY 2025-26 (Source: Income Tax Act).

Even if your income is below this threshold, filing ITR is the only way to claim TDS refunds. Since AMCs deduct TDS on every redemption regardless of the amount, most NRIs who actively invest will benefit from filing. Our NRI tax filing guide covers the process.

The DTAA Advantage for UAE NRIs

India and the UAE have a Double Taxation Avoidance Agreement (DTAA). Since the UAE has no income tax, you won't face double taxation on your mutual fund gains.

The TDS deducted in India is your final tax liability. You can claim refunds on excess TDS by filing ITR.

For NRIs in countries with income tax (UK, US, Canada, Australia), DTAA provisions allow you to claim credit for taxes paid in India against your home country tax liability.

This prevents paying tax twice on the same income. Read our guide on avoiding double taxation on mutual funds.

👉 Tip: Keep records of every SIP transaction, including the date, amount, NAV, and units allotted. You'll need these for ITR filing and for calculating capital gains when you redeem. Most platforms provide this in downloadable statements, so save them annually.

The GIFT City Alternative: SIP Without TDS

Here's something most SIP guides don't mention at all.

If you invest through GIFT City mutual funds, the tax treatment is fundamentally different. Capital gains on qualifying GIFT City fund units are exempt under Section 10(4D) of the Income Tax Act for non-residents (Source: Income Tax Act).

No TDS. No ITR filing (if this is your only India income). No refund claims.

GIFT City mutual funds are denominated in USD, so you also avoid currency conversion risk. The minimum investment for some funds starts at $500 since the retail mutual fund launch in September 2025.

This doesn't replace regular Indian mutual fund SIPs. Indian equity funds give you direct rupee-denominated exposure to India's domestic growth story.

But for the portion of your portfolio where you want tax-free, dollar-denominated India exposure, GIFT City funds are worth exploring.

Compare GIFT City options on the GIFT City mutual fund explorer and track markets via the GIFT Nifty tracker.

You can also explore GIFT City AIFs for alternative investment exposure and compare NRI FD rates for your fixed-income allocation.

Your 7-Day SIP Launch Plan

Here's a realistic timeline for a UAE-based NRI who has PAN and passport ready:

Day 1-2: Apply for NRE account online with a bank that supports video KYC (ICICI, HDFC, or Axis). Complete video verification.

Day 3-5: While the bank account processes, start the mutual fund KYC process on your chosen platform. Submit documents, complete FATCA declaration, do video IPV.

Day 5-7: Once the NRE account is active, link it to your investment platform. Register the e-mandate via net banking. Transfer funds from your UAE bank to the NRE account.

Day 7-8: Once the mandate is approved and funds have arrived, start your first SIP. Even ₹5,000 is a start.

Day 10: Do a test run. Verify that the first auto-debit processes correctly and units are allocated.

This is the best case. If your bank needs physical documents, or KYC gets rejected, add 1-2 weeks. The key is to run multiple steps in parallel rather than sequentially.

What Happens If Your SIP Bounces?

SIP auto-debits can fail for several reasons: insufficient balance in the NRE account on the debit date, mandate expired, technical glitch, or bank holiday on the debit date.

If a SIP misses one month, nothing catastrophic happens. The AMC skips that installment and retries the next month.

Most AMCs allow up to 3 consecutive SIP failures before automatically cancelling the SIP.

To prevent bounces, keep a buffer of at least 2 months' SIP amount in your NRE account at all times. And set a calendar reminder 5 days before each SIP date to check the balance.

If your SIP gets cancelled due to repeated failures, you'll need to register a fresh SIP. The mandate may still be active, so the new setup is usually faster.

When You Return to India: What Happens to Your SIP?

This is the planning step most NRIs postpone until it becomes urgent.

When you return to India and your residential status changes from NRI to Resident:

Your NRE account must be converted to a resident savings account.

The auto-debit mandate linked to the NRE account will need to be re-registered against the new resident account.

Inform every AMC about your status change.

This is mandatory under SEBI and FEMA regulations. Your KYC must be updated with an Indian address.

Your SIPs continue, but future redemptions will be taxed as per resident tax rules.

If you qualify as RNOR (Resident but Not Ordinarily Resident) for the first 2-3 years after return, your foreign income remains exempt from Indian tax. But domestic mutual fund gains are taxed normally.

Existing investments are not affected. Units you've accumulated as an NRI don't need to be redeemed.

They simply continue growing. The tax treatment changes only when you redeem after becoming a resident.

Read our detailed guide on what happens to mutual funds when returning to India.

👉 Tip: If you know you're returning within 2 years, avoid starting new SIPs in funds with lock-in periods (like ELSS, which has a 3-year lock-in). You don't want to be locked into an NRI-tagged investment when your status has already changed.

Five Mistakes That Cost NRIs Money

Mistake 1: Using an NRO account when NRE was the right choice.

NRO limits repatriation to $1 million per year and involves CA certificates for outward remittance.

If your money is coming from abroad and you might want it back, always use NRE. Read our guide on which account to use for mutual funds.

Mistake 2: Not checking fund house restrictions before starting.

If you're in the US or Canada, verify that the specific AMC and scheme accept your investment before completing KYC and mandate setup. Save yourself the wasted effort.

Mistake 3: Setting the SIP amount too low.

A ₹500/month SIP with a ₹200 SWIFT transfer fee means you're paying 40% in transaction costs.

Either batch your transfers quarterly and invest a lump sum, or increase the SIP to a level where transfer costs are under 1-2% of the investment.

Mistake 4: Ignoring TDS implications.

Unlike resident Indians who can have lower TDS or nil TDS below certain thresholds, NRIs face mandatory TDS on every redemption.

Factor this into your planning. Filing ITR to claim refunds is not optional. It's necessary.

Mistake 5: Not reviewing the SIP annually.

Starting a SIP and forgetting it for 10 years sounds disciplined. But fund performance, your goals, and market conditions change.

Review your portfolio every 12 months. Read our guide on timing the market vs staying invested for perspective.

Your SIP Is the Starting Line, Not the Finish

Starting a SIP from abroad isn't complicated. It's just multi-step. The process is unfamiliar, the platforms aren't always NRI-friendly, and the tax rules add a layer of caution.

But once it's set up, it runs quietly in the background. Month after month, your money flows into India's growth story while you focus on your career and life abroad.

That's the real power of SIP: disciplined wealth building without requiring constant attention.

If you've been putting this off because it felt too complex, use this guide as your checklist. Do one step at a time.

And if you get stuck, you're not alone. Many NRIs in our WhatsApp community have walked this exact path and are happy to share what worked (and what didn't) in their SIP journey.

Download the Belong app to compare mutual fund options, track NRI FD rates, and explore tax-free GIFT City investments that complement your SIP strategy. Your future self will thank you for starting today.