DCA for Expats: A Complete Guide

If you live abroad but want to participate in the global market, setting up an DCA in global mutual funds is highly lucrative. Here is what you need to know.

1. Can Expats Invest abroad?

Yes. Non-Resident Indians (Expats) can legally invest in global mutual funds. However, due to FATCA regulations, Expats based in the US and Canada have a slightly restricted list of AMCs they can invest with (e.g., L&T, UTI, SBI).

2. Repatriable vs Non-Repatriable Accounts

Repatriable Account (Repatriable): If you invest using foreign currency converted to local currency, the principal and profits can be freely transferred back to your country of residence without central bank permission.
Non-Repatriable Account (Non-Repatriable): If you invest using income generated within India (like rent), the funds are deposited here. There are strict limits on taking this money out of India.