Best SIP Options for NRI

Best SIP Plans for NRIs

For Non-Resident Indians (NRIs) who want to invest in India, there are two main options — 

• Investing a large amount all at once 
• Using a Systematic Investment Plan (SIP) 

Unlike a lump sum investment, which requires a large one-time payment, SIPs let you invest a fixed amount regularly — weekly, monthly, or quarterly — into mutual fund(s) of your choice. 

SIPs are especially good for NRIs who want to steadily grow their money. This regular investment approach makes it easier for you to start with smaller amounts and gradually build your investment portfolio over time. 

By exploring the best SIP plans for NRIs, you'll see how they can help you achieve your financial goals with minimal hassle.

Can NRIs Invest in SIP in India?

Yes, NRIs as well as PIOs and OCIs can invest in SIPs just like resident Indians. They can benefit from the same investment opportunities and advantages in India's growing market.

• You are eligible to invest in Indian mutual fund SIPs using your Non-Resident External (NRE) and Non-Resident Ordinary (NRO) accounts.
• If you started SIPs while residing in India, you can continue these investments by updating your NRO account details with your Asset Management Company (AMC) or broker.
• You don’t require any special permission from the Reserve Bank of India (RBI) or other banking authorities. 

NRI vs PIO vs OCI — What’s the Difference?
NRI — Non-Resident Indian PIO — Person of Indian Origin  OCI — Overseas Citizen of India Note: PIO has been discontinued since 2015. It has now been merged with OCI.

Why are NRIs Turning to SIP Investment?

• Stable Growth Potential 
• Rupee Cost Averaging
• Compounding Benefits 
• Ease of Investment 
• Cost Effective 
• Diversification

SIP investment for NRIs is increasing in popularity due to the attractive growth prospects of the Indian market and the unique benefits of SIPs. A key advantage of SIPs is rupee cost averaging — this lets you get more units for low prices and less units at high prices, which can bring better returns over the long term.

You can also take advantage of compounding, where both the initial investment and the earned interest grow together, boosting overall returns. The top SIPs for NRIs are easy to set up and manage online, making them a convenient option for NRIs investing from abroad. 

Additionally, SIPs offer diversification across various mutual funds, helping spread risk and enhance potential returns.

10 Best SIP Plans for NRI to Invest 

Here are the best SIP plans for NRIs to help you compare and make an informed decision —

1. Aditya Birla Sun Life - Individual Pure Equity Fund

The Aditya Birla Sun Life fund is a joint venture between Sun Life Financial and the Aditya Birla Group. Considered one of the best SIPs for NRI in India, it’s great for those looking for substantial long-term gains and are okay with the risks of the stock market.

This fund delivered a high annualised return of 24.56% over 5 years, showing impressive performance in the stock market. It invests in a variety of major companies’ stocks — Hindustan Unilever Ltd., Nestle India Ltd., Infosys Ltd, and more.

1. TATA Large & Mid-cap Fund

The Tata Large and Mid Cap Fund is designed to take advantage of growth opportunities in both large and mid-sized companies. 

A great option regarding SIP investment for NRIs, this fund invests in stocks of established companies as well as those with potential for significant capital appreciation. This includes companies getting noticed more by the market such as HDFC Bank Ltd., Varun Beverages Ltd., Reliance Industries Ltd, and more.

Additionally, it has delivered a solid annualised return of 22.14% in the past 5 years. Its expense ratio, meanwhile, stands at 1.76%.

1. Quant Small Cap Fund Growth for NRI

The Quant Small Cap Fund Growth scheme is a good SIP for NRIs who want to grow their money over the long term. This fund focuses on investing in small-cap stocks, which are shares of smaller companies with high growth potential. 

Over the past 5 years, the fund delivered a strong annualised return of 49.14%, with an expense ratio of 1.61%. Also, its top holdings include high-growth companies like Reliance Industries Ltd., Jio Financial Services Ltd., and Aegis Logistics Ltd., showing its focus on small-cap opportunities.

1. Tata AIA Life – Super Select Equity Fund

The Tata AIA Life's Super Select Flexi Equity Fund is a flexible investment plan that primarily invests in stocks and stock-related assets. One of the top SIP plans for NRIs, you can invest in large, mid-sized, and small companies through it and balance the risks and potential rewards. 

This fund achieved an annualised return of 23.3% in the past 5 years. Its holdings include a range of equity investments such as Ultratech Cement Ltd., Bikaji Foods International Ltd., and more.

1. Kotak Blue Chip Fund

Started in December 1998, the Kotak Bluechip Fund is managed by Kotak Mahindra Asset Management Company. It is suitable for investors looking for long-term growth and relatively less risk through investments.

This fund has provided an annualised return of 20.63% in 5 years with an expense ratio of 1.74%. Its investments are centred around top blue-chip stocks like HDFC Bank Ltd., ICICI Bank Ltd., Reliance Industries Ltd., and more, providing stability and growth through major industry leaders.

1. ICICI Prudential Bluechip Fund - Direct Plan - Growth

Launched in January 2013, the ICICI Prudential Bluechip Fund aims to grow investors’ money through top-quality blue chip stocks that offer steady returns.

This fund has achieved an impressive annualised return of 22.88% over the past 5 years, reflecting its strong market performance. With an expense ratio of just 0.87%, it offers a cost-effective option for SIP investment for NRIs. 

The fund’s holdings include major companies such as ICICI Bank Ltd., Reliance Industries Ltd., Larsen & Toubro Ltd., and more, highlighting its focus on investing in well-established, large-cap stocks. 

1. Canara Robeco Small Cap Fund Growth for NRI

Managed by Canara Robeco Mutual Fund, this fund was launched in February 2019. It is an open-ended fund, offering flexibility for investors looking to grow their investments in the small-cap sector.

In 5 years, this fund has delivered exceptional annualised returns of around 36%, paired with an expense ratio of 1.7%. Its major holdings in promising small-cap stocks such as Kei Industries Ltd., Bharat Electronics Ltd., and Kaynes Technology Ltd. reflect its high-growth investment strategy.

1. HDFC Small Cap Fund — Growth 

The HDFC Small Cap Fund aims to help investors make money by focusing on small-cap stocks. The fund manager selects stocks based on several criteria —

• Companies with strong financial health
• A good return on equity (ROE)
• Attractive valuations
• Sustainable business models with a competitive edge
• Businesses run by skilled managers

The average annualised return of this fund over 5 years is 30.47% with an expense ratio of 1.57%. The fund’s investments in stocks like Firstsource Solutions Ltd., Bank of Baroda, and Sonata Software Ltd. show its focus on small-cap growth opportunities.

1. Nippon India Growth Fund – Growth 

With the Nippon India Growth Fund scheme, you can primarily invest in stocks of medium-sized companies. The primary aim of this fund is to achieve long-term capital growth by investing in stocks and related securities. 

In 5 years, this fund has provided an expected annualised return of 31.62%, with an expense ratio of 1.59%. The fund’s portfolio includes high-potential stocks such as Power Finance Corporation Ltd., Cholamandalam Financial Holdings Ltd., and Persistent Systems Ltd., highlighting its growth-oriented approach.

1. SBI Magnum Midcap Fund Growth

Launched in March 2005, this fund aims to offer long-term capital growth by investing mainly in a diverse range of midcap stocks. It has delivered a competitive annualised return of 29.66% (in 5 years) with an expense ratio of 1.66%. 

The fund’s holdings feature a diverse array of mid-cap stocks including Torrent Power Ltd., CRISIL Ltd., and Carborundum Universal Ltd.

How Can NRIs Maximise Returns with Minimum Investments?

Here are several simple steps you can take to maximise returns while keeping your investments manageable —

• Assess your financial goals and how much you’ll need to save to meet them.
• Once you have a clear idea of your goals, create a list of the savings required. This helps you stay focused and ensures you’re putting away the right amount to reach your targets.
• Use online SIP calculators to estimate potential returns and help you decide which plan works best for you.
• Make sure you’re familiar with the features and benefits of the SIP plans for NRI.
• Complete all necessary documentation and KYC processes to ensure your investments go smoothly without any interruptions.
• Instead of investing a large amount in just one share, spread your investments across different shares. This way, you can reduce risk and potentially increase returns.

Things to Remember While Investing in SIP

When investing in SIPs (Systematic Investment Plans), there are a few key things you should keep in mind to make the most of your investments —

• Make sure to diversify your investments. Don't put all your money into one type of fund. Instead, spread it across different funds to balance potential risks and returns.
• Regularly review your portfolio to ensure it still aligns with your financial goals and risk tolerance. This helps you stay on track and make adjustments if needed.
• Stay updated on market trends in India. This will help you make informed decisions and adapt your investments as the market changes.
• Be aware of a few specific rules. For instance, if you provide details of a foreign bank account, your SIP application might be rejected. Hence, share your NRE or NRO account details for investments in India.
• Remember that when you redeem your mutual fund units, taxes will be deducted from your gains.
• You have the right to transfer both your invested amount and any earnings as long as you remain an NRI. However, compliance can be stricter if you're from the USA or Canada due to FATCA regulations, which require financial institutions to report your financial transactions.
• Additionally, check if you're a resident of any of the 90 countries participating in the Common Reporting Standard (CRS), as this global system aims to prevent tax evasion.

Frequently Asked Questions