Top PMS & AIF Investment Options for NRIs in India

Explore the best Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs)
tailored for NRIs. Start investing in India's growth today.

Why should NRIs Invest In India

NRI Investment in India: Fastest Growing and Robust Economy

Diversification Benefits for NRIs with Stable Currency

High Return on Equity Investments in India for NRIs

Investor-Friendly Market with Strong Regulatory Framework

Why NRIs Should Invest in India’s Growth Story through PMS and AIFs

India continues to be one of the most attractive investment destinations globally. According to the IMF’s latest projections, India is expected to grow at 6.8% in 2025, retaining its position as the fastest-growing major economy. This robust growth is supported by strong domestic demand, policy reforms, and a demographic dividend that favors long-term wealth creation.

For NRIs looking to invest in India, this presents a compelling opportunity to participate in a high-growth market through professionally managed options like Portfolio Management Services (PMS) and Alternative Investment Funds (AIFs). These investment avenues are ideal for NRIs seeking long-term capital appreciation, diversified exposure, and access to top fund managers across equity, credit, and private markets.

India’s strategic initiatives such as Digital India, Make in India, and Production Linked Incentive (PLI) schemes are accelerating innovation and enterprise growth—creating fertile ground for alternative investments to outperform traditional vehicles.

Adding to India’s attractiveness is the rise of GIFT City (Gujarat International Finance Tec-City)—India’s first operational International Financial Services Centre (IFSC). GIFT City is revolutionizing the way NRIs invest by offering a globally compliant, tax-efficient, and fully repatriable platform to invest in Indian and international opportunities. Several leading PMS and AIF managers have already set up operations within GIFT City, allowing NRIs to invest without facing FEMA restrictions and benefit from zero capital gains tax on certain instruments.

NRI investment in India offers exciting opportunities backed by a strong economy, large consumer market, and a favorable regulatory environment. Here’s why NRIs should consider India as their preferred investment destination:

Fast-Growing Economy

India is the fastest-growing major economy in the world. As per the International Monetary Fund (IMF), India is projected to grow at 5.9% in 2023. Strategic reforms like the Atmanirbhar Bharat Abhiyan and a $270 billion stimulus package have positioned India as a robust investment destination, making it a key focus for Portfolio Management Services for NRIs and Alternative Investment Funds India.

Large Market with Investment Potential

With a population of over 1.4 billion, India offers a vast consumer base and significant economic potential. A stable democratic framework and growing middle class make India one of the best investment options for NRIs, particularly through professionally managed avenues like PMS and AIFs.

Strong and Transparent Financial System

India’s financial markets, regulated by the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), provide a safe and well-governed environment for investments. For NRIs exploring how to invest in PMS as an NRI or seeking diversification through AIF investment process for NRIs, India’s market structure ensures security and transparency.

High Returns Across Asset Classes

The Indian stock markets have delivered strong long-term returns. The NIFTY 50 index, India’s benchmark equity index, recorded an approximate 10% average annual return over the past decade, making it highly attractive for those seeking NRI investment in India for superior growth opportunities.

Tax Benefits for NRIs

One of the major advantages of investing in India is the NRI tax benefits in India. Through Double Taxation Avoidance Agreements (DTAA) with countries like the USA, UK, Canada, France, and others, NRIs can avoid paying taxes twice and enjoy lower tax rates on capital gains, dividends, and interest income.

Ease of Investing and Repatriation

The Indian government has simplified the investment process for NRIs. Investing in Portfolio Management Services for NRIs and Alternative Investment Funds India can now be done digitally with minimal documentation. Additionally, investment proceeds can be freely repatriated, ensuring liquidity and flexibility for NRI investors.

Frequently Asked Questions

Do Know What You Need To Know

For NRI investors exploring NRI investment in India, especially those interested in Portfolio Management Services for NRIs and Alternative Investment Funds India, PMS AIF WORLD answers some of the most frequently asked questions to help you make informed investment decisions.

Why Should an NRI Invest in Portfolio Management Services (PMS) Instead of Mutual Funds (MF)?

Portfolio Management Services (PMS) offer a personalized, actively managed investment solution, ideal for NRIs seeking customized wealth creation strategies. PMS is designed for high-net-worth individuals (HNIs) who prefer direct ownership of a portfolio comprising equities, debt instruments, structured products, and alternative securities, rather than holding units of a pooled mutual fund.

Unlike Mutual Funds (MF), where investors own units of a common fund, PMS provides direct ownership of underlying securities. This approach allows for greater flexibility, customization, and control aligned with individual financial goals.

What are the documentation requirements before you can start investing in India as an NRI?

NRIs must submit KYC documents (PAN card, overseas address proof), immigration documents (if applicable), and open a Portfolio Investment Scheme (PIS) account as per RBI guidelines. Documents must be notarized or banker-attested if outside India. After verification, investments in Portfolio Management Services for NRIs and Alternative Investment Funds India can be activated.

What is a Portfolio Investment Scheme (PIS) account and how many PIS accounts can an NRI hold?

A PIS account allows NRIs to buy and sell listed shares and convertible debentures in India through an NRI savings account with a designated bank. An NRI can hold only one PIS account at a time, and must declare that no other PIS account exists. PIS accounts are offered by major banks like HDFC, ICICI, SBI, and Kotak.

What are the implications of investing from an NRE bank account vs an NRO bank account?

An NRE (Non-Resident External) account is used to park foreign income earned abroad. Money in an NRE account is fully repatriable (principal + interest) and is tax-free in India. It is ideal for NRIs who want to invest their overseas earnings into Portfolio Management Services for NRIs or Alternative Investment Funds India.
An NRO (Non-Resident Ordinary) account is used to manage income earned within India, like rent, dividends, or property sale proceeds. Funds from an NRO account can be repatriated after paying applicable taxes, with a repatriation limit of USD 1 million per financial year. Interest earned in NRO accounts is taxable at 30% (plus surcharge).
To benefit from lower tax rates under the Double Taxation Avoidance Agreement (DTAA), NRIs must submit a valid Tax Residency Certificate (TRC) from their country of residence.

US & Canada

Only a select few Portfolio Management Services (PMSs) and Alternative Investment Funds (AIFs) accept investments of NRIs from the USA and Canada because of the cumbersome compliance requirements under FATCA or Foreign Account Tax Compliance Act.

Over years, some fund houses have consulted each other and experts on this matter, and a few of them have considered taking investments from USA and Canada based investors.

But, Under FATCA, it is compulsory for all financial institutions accepting US & Canada NRI investments, to share the details of transactions with the US Government. FATCA ensures that there is no deliberate tax evasion on income generated overseas.

India has a double taxation avoidance agreement with both the North American countries thus Investors effectively have to pay tax at a concessional rate.

There are very few Portfolio Management Services (PMSs) and Alternative Investment Funds (AIFs) from India that accept US & Canada based NRI investments. Some of the PMSs that accept investment for US & Canada based NRIs are:

Renaissance India Next Portfolio – Dynamic Thematic Portfolio

Samvitti Active Alpha PMS

Invasset Growth Fund PMS

Ambit Global Private Client Alpha Growth

and a few more…

To know more about these and other Portfolio Management Services (PMSs) and Alternative Investment Funds (AIFs) from India that accept US & Canada based NRI investments, click here to book a 1:1 appointment with our Experts

Tax laws for US and Canada-based NRIs (Non-Resident Indians) investing in PMSs and AIFs in India:

The tax laws for US and Canada-based NRIs (Non-Resident Indians) investing in PMS (Portfolio Management Services) and AIFs (Alternative Investment Funds) in India are different and can be complex. Here is a brief overview of the tax laws for each country:

Tax Laws for US-based NRIs investing in PMS and AIFs in India:

Taxation of Capital Gains:The US taxes capital gains on foreign investments, including PMS and AIFs. The gains are taxed at the applicable capital gains tax rate, which can vary depending on the investment holding period.
PFIC Rules:The US has specific tax rules for investments in Passive Foreign Investment Companies (PFICs), which could potentially include certain types of AIFs. The PFIC rules are complex and can result in high taxes and penalties for US taxpayers. NRIs investing in AIFs in India should carefully evaluate the potential impact of PFIC rules on their investments. For more details on PFIC, please click here.
Foreign Account Tax Compliance Act (FATCA):The US has implemented FATCA, which requires foreign financial institutions to report financial information about US taxpayers to the Internal Revenue Service (IRS). NRIs investing in PMS and AIFs in India are required to comply with FATCA regulations.
Double Taxation Avoidance Agreement (DTAA):India and the US have a DTAA, which provides relief from double taxation. NRIs investing in PMS and AIFs in India can claim tax credit for the taxes paid in India against their US tax liability. NRIs who wish to claim benefits under DTAA between India and their country of residence must obtain a TRC. The TRC serves as proof of their tax residency in their country of residence and can help avoid double taxation on their investment income.

 


Tax Laws for Canada-based NRIs investing in PMS and AIFs in India:

Taxation of Capital Gains:Canada taxes capital gains on foreign investments, including PMS and AIFs. The gains are taxed at the applicable capital gains tax rate, which can vary depending on the investment holding period.
Foreign Income Verification Statement (T1135):Canada requires its residents to report foreign assets, including investments in PMS and AIFs, in their annual tax returns. NRIs are required to file T1135 if their foreign investments exceed a certain threshold.
Withholding Tax:India imposes a withholding tax on income earned by NRIs from investments in India, including PMS and AIFs. The withholding tax rate varies depending on the type of investment and the country of residence of the NRI. Canada and India have a tax treaty that reduces the withholding tax rate to 15% for certain types of income.
Foreign Tax Credits (FTCs):Canada allows its residents to claim FTCs for taxes paid in foreign countries, including India. NRIs investing in PMS and AIFs in India can claim FTCs for the taxes paid in India against their Canadian tax liability.
Double Taxation Avoidance Agreement (DTAA):India and Canada have a DTAA, which provides relief from double taxation. NRIs investing in PMS and AIFs in India can claim tax credit for the taxes paid in India against their Canadian tax liability. NRIs who wish to claim benefits under DTAA between India and their country of residence must obtain a TRC. The TRC serves as proof of their tax residency in their country of residence and can help avoid double taxation on their investment income.

UK

A select few Portfolio Management Services (PMSs) and Alternative Investment Funds (AIFs) accept investments from NRIs based out of UK & parts of Europe.

Some of the PMSs that accept investment from NRIs based out of UK & parts of Europe are:

Green Lantern Capital LLP

Buoyant Capital

Rennaisance

and a few more…

To know more about these and other Portfolio Management Services (PMSs) and Alternative Investment Funds (AIFs) from India that accept investment from NRIs based out of UK & parts of Europe, click here to book a 1:1 appointment with our Experts.

Tax laws for NRIs based out of UK investing in PMSs and AIFs in India:

The tax laws for NRIs based out of UK & parts of Europe investing in PMS (Portfolio Management Services) and AIFs (Alternative Investment Funds) in India are different and can be complex. Here is a brief overview of the tax laws:


Tax laws for UK-based NRIs investing in PMS and AIFs in India:

Withholding Tax:India imposes a withholding tax on income earned by NRIs from investments in India, including PMS and AIFs. The withholding tax rate varies depending on the type of investment and the country of residence of the NRI. The UK and India have a tax treaty that reduces the withholding tax rate to 15% for certain types of income.
Double Taxation Avoidance Agreement (DTAA):The UK and India have a DTAA in place that helps to avoid double taxation on investment income earned by NRIs in India. The DTAA provides relief in the form of tax credits, exemptions or deductions for taxes paid in India.
Capital Gains Tax:NRIs investing in PMS and AIFs in India may be subject to capital gains tax on the profits earned from the sale of their investments. The tax rate depends on various factors, including the holding period and the type of investment. The UK has a tax treaty with India that allows NRIs to claim relief on capital gains tax paid in India against their UK tax liability.
Reporting Requirements:NRIs investing in PMS and AIFs in India must comply with various reporting requirements in the UK. For example, UK taxpayers must report their foreign income and assets on their annual tax returns and file a separate tax return if they have income or gains above a certain threshold.

Middle East

A select few Portfolio Management Services (PMSs) and Alternative Investment Funds (AIFs) accept investments from NRIs based out of the Middle East.

Some of the PMSs that accept investment from NRIs based out of the Middle East are:

Abakkus PMS

ICICI Prudential Contra PMS

ICICI Prudential PIPE PMS

Sameeksha Capital Equity PMS

Stallion Asset Core Equity PMS

Buoyant Capital

Carnelian Capital

and a few more…

To know more about these and other Portfolio Management Services (PMSs) and Alternative Investment Funds (AIFs) from India that accept investment from NRIs based out of the Middle East, click here to book a 1:1 appointment with our Experts.

Tax laws for NRIs based out of the Middle East investing in PMSs and AIFs in India:

The tax laws for NRIs based out of the Middle East investing in PMS (Portfolio Management Services) and AIFs (Alternative Investment Funds) in India are different and can be complex.

India has signed DTAA with several Middle Eastern countries, including UAE, Qatar, Saudi Arabia, and Oman, among others. Under the DTAA, NRIs may be able to avoid double taxation on their income earned in India and their home country.

To ascertain more information on taxation for NRIs based out of the Middle East, please book an appointment with our experts.

Singapore

Singapore is Southeast Asia’s largest port and one of the world’s busiest. Its expansion and wealth are due to its strategic location at the southern tip of the Malay Peninsula, where it controls the Strait of Malacca, which links the Indian and South China Seas.

Some of the PMSs that accept investment from NRIs based out of the Singapore are:

Abakkus Emerging Opportunities PMS

Buoyant Capital Opportunities Multi-Cap PMS

Sameeksha Capital Equity PMS

Stallion Asset Core Equity PMS

Green Portfolio

Ampersand AIF

and a few more…

To know more about these and other Portfolio Management Services (PMSs) and Alternative Investment Funds (AIFs) from India that accept investment from NRIs based out of the Middle East, click here to book a 1:1 appointment with our Experts.

The tax laws applicable to them depend on the double taxation avoidance agreement (DTAA) between India and Singapore.

Under the DTAA, NRIs from Singapore are entitled to benefits such as lower tax rates on capital gains, dividends, and interest income earned from their investments in India. The tax rates may vary depending on the type of investment and the holding period of the investment.

For instance, if an NRI from Singapore invests in PMS or AIF in India and earns capital gains, they will be subject to a tax rate of 10% if the gains are long-term (held for more than 24 months) and 15% if the gains are short-term (held for less than 24 months). However, this tax rate may vary based on the provisions of the DTAA.

To ascertain more information on taxation for NRIs based out of Singapore, please book an appointment with our experts.

Disclaimer: It is important for NRIs to stay up-to-date with the latest tax laws and regulations in both India and their country of residence. Please seek professional advice from a qualified tax advisor or financial expert to understand the tax implications of investing in PMS and AIFs in India and to ensure compliance with the relevant tax laws.

Wish to make INFORMED INVESTMENTS for Long Term WEALTH CREATION

DO NOT SIMPLY INVEST, MAKE INFORMED DECISIONS

imageBOOK A CALL WITH OUR PMS AIF SPECIALISTS

At PMS AIF WORLD, we have a simple philosophy for NRIs looking for Investment Options in India. A very important point that needs to be understood is that there are 2 factors that determine Wealth Creation from equity investments. It is simple, but not easy. And, here it is…

Investing in a Quality Portfolio

A quality portfolio is the one that is not too diversified, & still offers the best risk-adjusted returns. Such a quality portfolio provides consistent growth which invigorates the process of compounding.

Holding it for Long Term

Long term horizon means a period of 10 years or more. This helps in reaping the benefits of compounding. It is easy to aspire for a long term horizon when making an investment, but practically very difficult to maintain given the vagaries of markets.

How?

Through HeWePro Capital Pvt. Ltd., which is our Investment Consulting Practice focused on achieving these 2 objectives for and with every client we manage.

With us, Quality Portfolio is identified through unbiased selection based on our proprietary analytics. We analyze PMS AIF investment products across 5 Ps – People, Philosophy, Performance, Portfolio, and Price through Proprietary 10 Factor Model with an endeavor to ascertain the Quality, the Risk, and the Consistency(QRC) attributes before suggesting the same to our clients. We are very selective in our approach.

With us, Long term horizon is achieved through an informed investing approach based on our proprietary content. Holding on to the portfolio requires high conviction in the portfolio at all points of time, else, one tends to exit early owing to the traps of emotions or impatience.  We do not let our clients commit a mistake of under-owning equity in the first place, nor early-exiting equity investments owing to any fear. We also do not let our clients make equity investments, beyond yardsticks of asset allocation & risk appetite.

In short, we are delivering excellent investor experience & reshaping the Wealth Management Industry, sticking to basics.

It’s easy to socialize & sell, which is what drives most wealth management companies, but difficult to maintain insight & integrity which drives us.

Wish to make INFORMED INVESTMENTS for Long Term WEALTH CREATION

DO NOT SIMPLY INVEST, MAKE INFORMED DECISIONS

imageBOOK A CALL WITH OUR PMS AIF SPECIALISTS

NRI Articles

PMS AIF WORLD is a New Age Investment Services Company, providing analytics-backed quality investing service with an endeavor and promise for wealth creation and prosperity. Over 5+ years, we have been managing 500+ UHNI & NRI families, across 1000 CR+ assets.

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