Multiple choice

One of your friends who have invested in a mutual fund is about to get Australian citizenship. What would you advise?

  1. He should transfer the investment to his relative

  2. He should get RBI approval for continuing

  3. He can continue to hold as PIO(s) are allowed to invest in mutual funds in India

  4. He should immediately redeem his investment since foreign citizens are not eligible investors
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

PIOs (Persons of Indian Origin) are permitted to invest in Indian mutual funds. Transferring investments to relatives is unnecessary, RBI approval is not required for PIO investments, and immediate redemption is not mandatory as foreign citizens with PIO status can continue holding existing investments.

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