https://v2.webnotes.in/tags/us/Recent content in US on WebNotesHugoen-INTue, 19 May 2026 00:00:00 +0000https://v2.webnotes.in/us-canada-fatca-restricted-mutual-fund/Tue, 19 May 2026 00:00:00 +0000https://v2.webnotes.in/us-canada-fatca-restricted-mutual-fund/<p><strong>US and Canada-resident Non-Resident Indians (NRIs)</strong> face significant restrictions on Indian mutual fund investing due to <strong>FATCA (Foreign Account Tax Compliance Act)</strong> and related compliance burdens. The vast majority of Indian AMCs do not accept investments from US-tax-resident or Canada-tax-resident investors, requiring this diaspora to pursue alternative routes for Indian exposure.</p> <p>For US and Canadian NRIs, this restriction creates a paradoxical situation: large, financially-secure Indian-origin populations are effectively shut out of the formal Indian mutual fund market and must pursue indirect routes (ADRs of Indian firms, India-focused ETFs listed abroad, Indian-listed Indian-ETFs through approved channels, real estate, etc.).</p>