India's alternative investment industry has expanded in recent years, with total AIF commitments crossing Rs 15.74 lakh crore as of December 2025. For the nearly 32 million Non-Resident Indians (NRIs) living across the world, participating in India's growth story is no longer limited by geography. Thanks to digital onboarding, video KYC, and remote documentation, it is now possible to NRI invest PMS AIF abroad without travelling to India. This NRI guide investing PMS AIF India 2026 explains every practical step - from opening the right accounts and completing documentation to understanding taxation, repatriation, and choosing the right investment structure.

Can NRIs Invest in PMS and AIF from Abroad?

Yes. NRIs are permitted to invest in Portfolio Management Services (PMS), Alternative Investment Funds (AIFs), Specialised Investment Funds (SIFs), and GIFT City funds while living overseas, provided they comply with FEMA regulations and complete the required documentation. Investments are typically made through NRE or NRO bank accounts, with PMS investments requiring an NRE or NRO Demat account. NRIs have access to the same investment opportunities available to resident HNIs.

Product	NRI Access	Min. Investment	Route	Repatriation
PMS	Yes	Rs 50 lakh	NRE or NRO Demat	NRE: Freely repatriable. NRO: USD 1 million per financial year limit.
AIF Category I & II	Yes	Rs 1 crore	NRE or NRO	Same as PMS
AIF Category III	Yes	Rs 1 crore	NRE or NRO	Same as PMS
GIFT City AIF	Yes	USD 75,000	Foreign currency	Freely repatriable with no FEMA repatriation cap
Specialised Investment Fund (SIF)	Yes	Rs 10 lakh	NRE or NRO	Same as PMS

Step 1 - Documents You Need Before You Start

Before investing, it helps to keep all documentation ready. Fortunately, most of these documents can now be obtained or submitted remotely, making the onboarding process much simpler than it was a few years ago. If you're applying for an NRI PAN card India from abroad or completing NRI KYC India online, you generally won't need to visit India, as most financial institutions now support digital verification and overseas document submission.

Document	Required For	How to Get It from Abroad
PAN Card	Mandatory for most investments and required for all investments above Rs 50,000	Apply online using Form 49AA. Upload your passport and overseas address proof. The PAN card can be delivered to an Indian or overseas address.
Passport Copy	Identity proof for KYC	Use a self-attested copy of your valid passport. Some institutions may request notarisation depending on jurisdiction.
Overseas Address Proof	Address verification during KYC	Submit a recent utility bill, overseas bank statement, government-issued ID, or driving licence showing your current residential address.
NRE or NRO Bank Account	Funding investments and receiving redemption proceeds	Open an account with an authorised Indian bank such as SBI, HDFC Bank, or ICICI Bank. Most banks now support online applications with video KYC for eligible applicants.
NRE or NRO Demat Account	Required for PMS investments. Not required for AIFs, where units are recorded in the fund's register.	Open an NRI Demat account with a SEBI-registered Depository Participant. Leading providers such as SBI, HDFC, and Zerodha offer dedicated NRI account-opening services.
Tax Residency Certificate (TRC)	Required to claim DTAA benefits on eligible investment income	Obtain the certificate from the tax authority in your country of residence. For example, US residents can apply for IRS Form 6166, UK residents through HMRC, and UAE residents through the Federal Tax Authority (FTA).

Step 2 - Complete Your KYC from Abroad

One of the biggest concerns for NRIs is whether they need to travel to India to complete KYC. Fortunately, that's no longer necessary. Today, most KYC Registration Agencies (KRAs) support NRI KYC India online through a Video KYC (V-KYC) process, allowing investors to complete identity verification entirely from overseas.

The process is straightforward. You begin by initiating your KYC application through the KRA or the investment platform facilitating your investment. After uploading the required documents, you schedule a video verification at a convenient time. During the call, a KRA official verifies your identity by asking you to display your original passport and overseas address proof on camera. Once the documents are verified and the information matches your application, your KYC is approved.

The entire process is digital and generally does not require any physical paperwork or travel to India.

Typical V-KYC Process

Submit your KYC application online.
Upload your passport, PAN card, photograph, and overseas address proof.
Schedule a Video KYC appointment.
Present the original documents during the video verification.
The KRA verifies your identity and documents.
KYC is approved and activated.

Under normal circumstances, NRI KYC India online is completed within 3 to 5 working days, depending on document verification timelines. ALTPORT assists clients throughout the process by coordinating document submission, scheduling Video KYC, and following up until the KYC is successfully registered.

Step 3 - Setting Up Your NRE Account and Demat

Once your KYC is complete, the next step is opening the banking and investment accounts required for investing in India. Thanks to digital onboarding, the NRI Demat account India process is considerably simpler than it was a few years ago.

Start by opening an NRE or NRO bank account with an authorised Indian bank. Most leading banks, including SBI, HDFC Bank, ICICI Bank, and Kotak Mahindra Bank, now allow NRIs to complete the application online using Video KYC and digitally submitted documents. In most cases, there is no need to visit a branch in India.

For investors planning to invest in Portfolio Management Services (PMS), an NRI-designated Demat account is also mandatory because the securities purchased by the portfolio manager are held directly in your name. Leading Depository Participants and brokerage firms offer remote account opening for NRIs, making the process convenient regardless of where you live.

While both NRE and NRO accounts can be used for investing, an NRE account is generally the preferred route for fresh investment capital because the principal and eligible gains are freely repatriable, subject to applicable regulations. An NRO account is commonly used for managing income earned within India.

Typical Timeline

NRE/NRO account opening: 5 to 10 working days
NRI Demat account activation: 7 to 14 working days
Investment-ready status: Usually within two weeks, provided all documents are in order

Once your bank account and Demat account are active, you're ready to begin investing in PMS or AIF products.

Step 4 - Signing the PMS Agreement and POA from Abroad

For many NRIs, this is the most important step in the investment journey. Unlike AIFs, Portfolio Management Services (PMS) require investors to execute a Power of Attorney (POA), authorising the portfolio manager to buy and sell securities on their behalf in the designated Demat account. Fortunately, NRI power of attorney India investment can be completed entirely from overseas.

The process is well established. After receiving the PMS agreement and POA documents, you sign them in the presence of a Notary Public in your country of residence. The documents are then either apostilled (for countries that are part of The Hague Apostille Convention) or attested by the Indian Embassy or Consulate in your jurisdiction, depending on local requirements.

Most countries with large Indian diaspora populations, including the United States, United Kingdom, UAE, Singapore, Canada, and Australia, recognise the apostille process, making document authentication relatively straightforward.

After attestation or apostille, the signed originals are couriered to India, where the PMS provider completes the final account activation and onboarding formalities.

Rather than navigating varying documentation requirements yourself, ALTPORT coordinates this process with investors and provides the PMS manager-specific POA format, ensuring that documents are executed correctly the first time. This significantly reduces delays and makes the onboarding process smoother for NRIs investing from abroad.

Step 5 - Transferring Funds to India

With your accounts and documentation in place, the next step is funding your investment. For most NRIs, this involves making an international wire transfer from an overseas bank account to an NRE account in India. The process is straightforward and fully permitted under FEMA, with no prior approval required for inward remittances.

Once the funds reach your NRE account, they are automatically converted from the remitted foreign currency into Indian Rupees (INR) at the bank's prevailing exchange rate. You can then transfer the funds to your PMS manager or AIF for investment.

International wire transfers are typically processed within 1 to 3 working days, depending on the sending and receiving banks. Most banks also levy SWIFT charges ranging from USD 15 to USD 40, along with any applicable intermediary bank fees.

For investors choosing GIFT City AIFs, the process is slightly different. Since these funds are generally USD-denominated, your investment can be remitted directly to the fund's IFSC bank account in foreign currency. This removes the need for INR conversion and reduces foreign exchange exposure during the investment process.

Practical Tips for Funding Your Investment

Transfer investment capital directly from your overseas bank account to your NRE account for easier repatriation later.
Verify the beneficiary details carefully before initiating the wire transfer.
Keep copies of the SWIFT message, bank advice, and inward remittance certificate, as these documents may be required when repatriating funds or responding to future compliance queries.
If you're investing through GIFT City, confirm the fund's foreign currency remittance instructions before transferring funds.

Under current FEMA regulations, inward remittances to an NRE account for investment purposes are freely permitted, making this one of the simplest parts of the investment journey when the documentation is in place.

Taxation for NRIs on PMS and AIF

Understanding NRI taxation India 2026 is essential before investing, particularly because the tax treatment differs across PMS, AIFs, and GIFT City structures. While the overview below covers the key principles, taxation for NRIs can become complex due to the interaction between Indian tax laws, Double Taxation Avoidance Agreements (DTAAs), and the tax rules of your country of residence. Investors should refer to ALTPORT's dedicated DTAA guide and consult a qualified international tax advisor before making investment decisions.

PMS Taxation

In a PMS, securities are held directly in the investor's Demat account, so taxation applies at the investor level. The PMS provider deducts applicable Tax Deducted at Source (TDS) on eligible transactions.

Under the current tax regime:

Short-Term Capital Gains (STCG): 20%
Long-Term Capital Gains (LTCG): 12.5%, subject to prevailing tax provisions

If your country has a Double Taxation Avoidance Agreement (DTAA) with India, the effective tax liability may be reduced. To claim treaty benefits, investors should submit a valid Tax Residency Certificate (TRC) and Form 10F to the PMS provider before relevant transactions take place.

AIF Category I and Category II

Category I and II AIFs operate under a pass-through taxation framework for most income. For NRIs, TDS is generally deducted at 10% under Section 194LBB before distributions are made. Where applicable, DTAA benefits may help reduce the final tax burden, subject to submission of the required documentation.

AIF Category III

Category III AIFs follow a different tax structure. These funds are generally taxed at the Maximum Marginal Rate (MMR) at the fund level. As a result, investors typically receive post-tax distributions and, in many cases, do not have any additional Indian tax liability on those earnings. Individual circumstances may vary depending on the nature of the income and applicable regulations.

GIFT City Funds

GIFT City offers a distinct tax framework for eligible non-resident investors. Under current regulations, transactions in eligible funds through the IFSC may qualify for zero Indian capital gains tax on specified IFSC exchange transactions. This, combined with USD-denominated investing and free repatriation, makes GIFT City an attractive structure for many globally mobile investors.

Because cross-border taxation depends on multiple factors, including your country of residence, treaty eligibility, and reporting obligations, it is important to seek professional advice. In addition to reviewing ALTPORT's detailed DTAA guide, consult an experienced international tax Chartered Accountant to ensure full compliance in both India and your country of residence.

Country-Specific Considerations

While the investment process is largely similar for all NRIs, taxation and reporting obligations vary depending on your country of residence. Before investing, it's important to understand both Indian regulations and your local tax laws to avoid compliance issues and double taxation.

Country	Key Consideration	DTAA with India	Recommended Route
UAE	No personal income tax in the UAE. Home to the largest Indian diaspora. FEMA compliance is generally straightforward.	Yes - favourable for many capital gains scenarios	NRE route for most investors. GIFT City for larger portfolios.
USA	Indian accounts exceeding USD 10,000 may trigger FBAR reporting. Indian financial institutions also follow FATCA requirements.	Yes - tax credit method	Consult a US-India dual-tax specialist before investing. NRE route is commonly used.
UK	UK tax residents may be liable for UK capital gains tax on Indian investments. DTAA helps prevent double taxation through tax credits.	Yes - capital gains treatment can be complex	Seek coordinated UK and India tax advice. NRE account or GIFT City depending on investment objectives.
Singapore	Singapore does not levy capital gains tax, making it an attractive jurisdiction for long-term investors. DTAA benefits are available where applicable.	Yes - favourable	NRE route or GIFT City for a tax-efficient structure.
Canada	Capital gains on Indian investments may be taxable in Canada. Foreign Tax Credit (FTC) can generally be claimed for eligible Indian taxes paid.	Yes - FTC method	NRE route. Claim available foreign tax credits in Canada.
Australia	Australian tax residents are generally taxed on worldwide capital gains. DTAA relief is available through foreign tax credits.	Yes - FTC method	NRE route. Report Indian investments in the Australian tax return.

GIFT City - The Most NRI-Friendly Investment Structure

For many NRIs investing in India for the first time, GIFT City offers one of the simplest and most efficient entry points into alternative investments. Investors can fund eligible AIFs directly in USD, eliminating the need for currency conversion and allowing investments to remain freely repatriable without the typical Form 15CA and 15CB requirements.

Following the reduction in the minimum investment to USD 75,000 in February 2025, GIFT City has become even more accessible. Eligible non-resident investors in certain Category III AIFs may also benefit from zero Indian capital gains tax on specified IFSC exchange transactions, while eligible fund units can avail of the Section 80LA tax framework.

ALTPORT offers access to leading GIFT City strategies, including products from ABSL and ASK, along with dedicated resources to help investors understand the structure in greater detail.

How ALTPORT Makes This Process Easier

Investing from overseas involves more than selecting the right fund—it also requires careful coordination of documentation, compliance, and onboarding. As an APMI-registered distributor (Registration No. APRN00074),

ALTPORT assists NRI investors with V-KYC coordination, overseas Power of Attorney documentation, apostille and attestation guidance, and access to curated PMS, AIF, and GIFT City investment opportunities.

To get started, explore ALTPORT's dedicated NRI Corner or speak with an investment specialist for personalised guidance.

Frequently Asked Questions

Can NRIs invest in PMS in India from abroad?

Yes. NRIs can invest in Portfolio Management Services (PMS) while residing overseas, provided they meet the Rs 50 lakh minimum investment requirement. A designated NRE or NRO Demat account is mandatory because the securities are held directly in the investor's name. The required Power of Attorney (POA) can be executed abroad by signing it before a Notary Public and completing the necessary apostille or Indian embassy/consulate attestation, eliminating the need to travel to India.

Do NRIs need to visit India to invest in PMS or AIF?

No. Most of the investment process can now be completed remotely. Video KYC (V-KYC), online opening of NRE/NRO bank accounts, remote Demat account setup, and overseas execution of POA documents allow NRIs to invest in PMS and AIFs without visiting India. With the required documents in place and guidance from an investment platform, the entire onboarding process can be completed from abroad.

Which is the most NRI-friendly investment structure?

For many overseas investors, GIFT City AIFs are among the most NRI-friendly investment structures available. These funds are USD-denominated, allow investments and withdrawals in foreign currency, and are freely repatriable. Eligible non-resident investors in certain Category III AIFs may also benefit from zero Indian capital gains tax on specified IFSC exchange transactions. The current minimum investment for eligible GIFT City AIFs is USD 75,000.

How long does it take for an NRI to start investing?

In most cases, an NRI can complete the investment process within three to four weeks. Video KYC generally takes around one week, while opening NRE/NRO and Demat accounts typically requires another week. Completing POA documentation, notarisation, and apostille or embassy attestation may take one to two weeks, followed by two to five working days for the international fund transfer and investment execution.

What is the tax on PMS gains for NRIs?

For PMS investments, Short-Term Capital Gains (STCG) are currently taxed at 20%, while Long-Term Capital Gains (LTCG) are taxed at 12.5%, subject to the prevailing tax laws. Applicable Tax Deducted at Source (TDS) is deducted before payouts where required. NRIs may also be able to claim benefits under the applicable Double Taxation Avoidance Agreement (DTAA) by submitting a valid Tax Residency Certificate (TRC) and Form 10F.

Conclusion

Investing in Indian PMS and AIFs from abroad has become significantly more accessible than it was just a few years ago. With Video KYC, online account opening, digital documentation, and remote Power of Attorney execution, NRIs can complete the entire investment journey without travelling to India. While cross-border investing involves documentation, taxation, and FEMA compliance, the process is straightforward when handled systematically.

ALTPORT helps NRI investors at every stage—from KYC and account setup to fund selection, documentation, and ongoing portfolio support across PMS, AIFs, SIFs, and GIFT City funds. If you're ready to participate in India's growing alternative investment market from anywhere in the world, connect with ALTPORT's NRI investment specialists for end-to-end assistance.

Disclaimer: Investments in PMS, AIFs, SIFs, and GIFT City funds are subject to market risk, regulatory provisions, FEMA guidelines, and applicable tax laws. Tax treatment may vary based on your country of residence and individual circumstances. Investors should read all scheme-related documents carefully and consult qualified legal, tax, and financial advisors before investing.