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Frequently Asked Questions
Investment Questions: Super Funds
Investing your Australian Super Fund in the Indian equity market offers a unique opportunity to tap into one of the world’s fastest-growing economies. Whether you’re looking to diversify your investment portfolio or take advantage of India’s dynamic growth sectors, our platform makes it easy and secure to invest your super into Indian stocks and funds. Below, you’ll find answers to some of the most frequently asked questions to help guide you through the process, risks, and benefits of investing in India through your superannuation.
Here’s a your Investment Questions Answers, focusing on how Australian Superannuation Funds can be invested in the Indian equity market. It aims to address common queries, build trust, and clarify the process for your doubts.
This page answers typical questions while educating visitors on the process and benefits of investing in Indian markets through their Australian Super Fund.
What is the legal framework for an SMSF to invest in India
An SMSF can invest in India through two routes:
- By registering as a Foreign Portfolio Investor (FPI)
- Through GIFT-IFSC
What is the mandatory requirement in SMSF in India
The SMSF trust should have Corporate Trustee. Individual trust cannot invest through the FPI route.
What are the investment options available for SMSF in India
|
SMSF ownership |
Investing in Shares |
Investing in Mutual Funds |
|
51% or more is held by NRI |
No |
Yes |
|
51% or more is held by non-NRI |
Yes |
Yes |
How can I invest ?
The investment management can be self-managed or can be entrusted to us. Mutual funds can be viewed and managed through our investment portal and mobile app. The portal has online execution capabilities including purchase, redemption, scheme transfers and SIPs. The transaction execution will be seamless without any paperwork.
How can I view the investment portfolio ?
The portfolio can be viewed through web or mobile app.
Web-Portal Access
https://www.samarthcapital.in/login/
Mobile App for Android Users
https://play.google.com/store/apps/details?id=com.samarthcapitals.samarthcapital&hl=en_IN
Mobile App for iPhone Users
I need complete comparative Investment details
|
Particulars |
Option 1: Investments through FPI Route |
Option 2: Investments through IFSC Route |
|
Fund Houses with whom you can invest in |
All Fund Houses |
Following fund houses offer investment products:
|
|
Categories of Funds that can be invested-in |
Equity, Debt and Hybrid Funds (Not allowed in Liquid Funds) |
Select Equity and Hybrid Funds |
|
Investment Currency |
Indian Rupees |
US Dollar |
|
Minimum Investment Amount |
INR 500,000 one-time Additional investments can be in tranches of INR 5,000 |
US$ 150,000 one-time Additional investments can be in tranches of US$ 10,000 |
|
Whether Investment structuring is possible via:
|
Yes Yes Yes |
No No No |
How does taxation work ?
|
Particulars |
Option 1: Investments through FPI Route |
Option 2: Investments through IFSC Route |
|
Tax on Capital Gains |
The gains are taxable in India. Equity Mutual Funds Short Term Capital Gains: 20% Long Term Capital Gains: 12.5% Debt & Hybrid Mutual Funds Short Term Capital Gains: 30% Long Term Capital Gains: 10% |
Not Applicable as Capital Gains are not taxable in India |
|
Holding Period for Capital Gains |
Listed Securities: Short Term: 12 months or less Long Term: more than 12 mths Unlisted Securities: Short Term: 24 months or less Long Term: more than 24 mths |
Not Applicable as Capital Gains are not taxable in India |
|
Taxes to be paid in India |
Yes The tax amount will be withheld by the Fund House when the units are redeemed or when the units are switched to other scheme. |
No |
|
Tax on Dividend |
20% The tax amount will be withheld by the Fund House when the dividends are distributed. |
Not Applicable as the investments will be in growth schemes only. |
|
Double Tax treaty benefits allowed in Australia |
Yes |
Not Applicable as taxes are not paid in India |
|
Tax returns to be filed in India |
Yes if there is redemption |
No |
What are the documents required and accounts to be activated ?
|
Particulars |
Option 1: Investments through FPI Route |
Option 2: Investments through IFSC Route |
|
Trust’s PAN required |
Yes |
No |
|
SEBI Registration required |
Yes |
No |
|
Bank Account to be opened in India |
Yes |
No |
|
Custody (Demat) Account to be opened in India |
Yes |
No |
|
Point of Contact for Accounts: PAN Application SEBI Registration Opening Bank Account Opening Demat Account Mutual Fund Account |
Orbis Financial (Custodian) Orbis Financial (Custodian) Orbis Financial (Custodian) Orbis Financial (Custodian) Samarth Capital |
Not Applicable Not Applicable Not Applicable Not Applicable Samarth Capital |
|
KYC Documents Required |
Attested copies of:
|
Attested copies of:
|
What are the charges for opening account and recurring charges
|
Particulars |
Option 1: Investments through FPI Route |
Option 2: Investments through IFSC Route |
|
List of Charges |
Account Set-up Fee: US$ 500 SEBI Reg Chg: US$ 300 Annual Demat Chg: INR 1,000 Annual Custody Chg: 6 bps per annum on Average AUC Inv Management Chg: Nil |
Inv Management Chg: 1.35% per annum |
What is the turnaround time for investing
|
Particulars |
Option 1: Investments through FPI Route |
Option 2: Investments through IFSC Route |
|
Turnaround time for investing |
1 month |
3 days |
let’s get connected
Have a Question?
The investment management can be self-managed or can be entrusted to us. Mutual funds can be viewed and managed through our investment portal and mobile app.