NRI
Can NRIs in Canada Invest in Indian Mutual Funds? A 2026 Guide
By Mrs. Manalee Verneker
5 November 2026 · 7 min read
It is one of the most common questions from Indians in Toronto, Vancouver and Calgary: can I still invest in Indian mutual funds now that I live in Canada? The short answer is yes. The longer answer is that the fund house matters, and that most of the confusion online comes from articles written years ago.
This guide covers who can invest, why some fund houses say no, how to set it up from Canada, and what Canadian tax expects of you. Investors in the US face similar limits; the tax side there is different and needs US specialist help.
Who can invest from Canada
- Indian citizens living in Canada, including permanent residents and people on work or study permits. For Indian investment rules you are an NRI.
- Canadian citizens of Indian origin, usually investing as OCI card holders.
- Foreign nationals who are not of Indian origin generally cannot invest in Indian mutual funds directly.
Why some fund houses say no
Investors who live in Canada or the US bring extra compliance and reporting work for a fund house. Many Indian fund houses decided not to take it on, and refuse applications from residents of these two countries.
A smaller group of fund houses accept investors living in Canada, often with conditions. Depending on the fund house, these can include paper application forms, an extra declaration about your residence, or investing only through certain routes. Their policies change from time to time, so check the current position before you apply. We keep an up-to-date list for our clients.
How to invest from Canada, step by step
- Choose fund houses that accept Canadian residents, and funds within them that match your goals.
- Get a PAN if you do not have one. You can apply from abroad.
- Open an NRE account for money you send from Canada, and an NRO account if you have income in India, such as rent.
- Complete KYC as an NRI: PAN, passport, Canadian address proof, a photograph and, for Canadian citizens, your OCI card.
- Sign the FATCA and tax residence declaration, showing Canada as your country of tax residence.
- Invest a lump sum, or register a mandate on your NRE or NRO account and start a SIP.
Most of this can be done from Canada. Some fund houses ask for original signed forms by courier.
Documents checklist
| Document | Indian citizen in Canada | Canadian citizen of Indian origin |
|---|---|---|
| PAN card | Yes | Yes |
| Passport | Indian passport | Canadian passport |
| OCI card | No | Yes |
| Canadian address proof | Yes | Yes |
| NRE or NRO account details | Yes | Yes |
| FATCA and tax residence declaration | Yes | Yes |
Tax in India and in Canada
In India, tax is deducted at source when an NRI redeems mutual fund units, at rates that depend on the type of fund and how long you held it.
Canada taxes its residents on worldwide income, so gains and distributions from Indian funds go on your Canadian return. If the total cost of your foreign property, including Indian mutual funds and bank deposits, is more than C$100,000 at any time in the year, you must also report it on form T1135.
India and Canada have a tax treaty, which generally lets you claim credit in Canada for tax already paid in India on the same income. A Canadian tax professional should look at your holdings each year.
Worked example
A Toronto engineer investing for her parents in Goa
Ankita, 31, is an Indian citizen and a permanent resident in Toronto. She wants to build a fund in India for her parents' care in Margao, and to keep a link with India in case she returns.
She opens an NRE account for transfers from Canada. Her KYC is updated to NRI status with her Toronto address, and she signs the FATCA declaration showing Canada. She invests through two fund houses that accept Canadian residents, with a monthly SIP from her NRE account.
Her Canadian tax preparer adds the funds to her return each year and keeps an eye on the C$100,000 reporting limit for foreign property.
An illustration. Investments carry market risk and returns are not guaranteed.
How we can help
We check which fund houses accept you, complete the KYC and FATCA paperwork with you, set up your SIPs from your NRE or NRO account and review them over video at a time that suits Canada. See our page for NRIs in Canada, or the step-by-step guide to starting a SIP as an NRI.
Frequently asked questions
Yes. Indian citizens living in Canada can invest in Indian mutual funds as NRIs, through fund houses that accept Canadian residents. Not every fund house does, and some apply conditions, so check before you apply.
Canadian citizens of Indian origin usually can, as OCI card holders, with the same fund house limits that apply to NRIs in Canada. Foreign nationals not of Indian origin generally cannot invest directly.
Investors living in Canada and the US bring extra compliance and reporting work, and many fund houses chose not to take it on. A smaller group accept them, often with conditions.
Yes, with a fund house that accepts Canadian residents. The SIP is paid from your NRE or NRO account in India through a registered mandate.
India deducts tax when you redeem, and Canada taxes its residents on worldwide income. The India–Canada tax treaty generally lets you claim credit in Canada for the Indian tax paid on the same income.
A Canadian form for reporting foreign property. Canadian residents whose foreign property costs more than C$100,000 in total at any time in the year must file it, and Indian mutual funds and bank deposits count.
Related solution
NRIs in Canada
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