Beware of profit/commission driven advice
A lot of the advice that is offered to investors, including NRIs, is driven by commissions. A significant majority of investment consultants recommend schemes which offer them higher commissions as against schemes that suit the client’s needs and objectives. Sometimes, distributors of mutual funds either lack accurate information on taxation or do not pass on the correct information to their NRI clients.
Godmind mutual fund advisory service is set up by a team of Certified and Registered Mutual Fund advisors by Association Of Mutual Funds In India (AMFI). Our main aim is to provide guidance and impart knowledge for a disciplined approach towards investment in mutual funds. Investment is an on going process and proper care should be taken while investing.
Cumbersome paperwork/documentation
Another issue pertaining to NRIs is the cumbersome paperwork and documentation. For instance, while mutual fund forms are common for both resident Indians as well as for NRIs, refilling them on account of errors made can become a cumbersome proposition in the case of NRIs on account of the distances involved.
Godmind advisors ensure that his NRI client is guided properly through the form-filling process and that the form is error-free. Failure to follow simple guidelines may sometimes result in money and opportunities being lost. We exercise greater caution while filing forms and ensure that any overwriting/modifications/cancellations never takes place-its as simple as inspecting the form ,signing it and attaching the draft/cheque to the Godmind (we also provide envelope with return address).
Another case in point pertaining to documentation - our experience tells us that sometimes, the account statements do not reach the NRI. We are a virtual advisory firm and we send your account statement via E-mail. That way, the need for physical delivery would be eliminated. We do have a option to courier it to you, if you have mentioned in our form.
Investing Hurdles and How to overcome them?
Incorrect/incomplete information on country-specific guidelines
Many NRIs are not informed by their distributors about some country-specific guidelines for the purpose of making investments. For example, the SEC guidelines prohibit Indian funds not registered in the US from mobilising monies from US based NRIs. Mutual funds in India (not registered in the US), whose parent companies are registered in the US (and therefore governed by the SEC), do not accept monies from US based NRIs.
This fact has to be conveyed to the NRI by Godmind advisors,who are registered with AMFI, so that the NRI is able to plan his investments properly.
Unnecessary
duplication of efforts
At times, fund houses ask for a certificate authenticating the NRI’s status; the same has to be procured from the bank through which the NRI has invested his money. This is so even when the NRE/NRO account cheques have a clear mention on the cheque itself of the status of the cheque (i.e. the cheque being an NRE/NRO account cheque). We feel that the very mention of the cheque being an NRE/NRO account cheque should act as sufficient proof of the individual’s or the account’s status and that the NRI should not be put through any further hassles before investing. At Godmind we make sure that you are updated on real time basis with whats happening in the investment world.
Having come this far in our note, one may be wondering as to how NRIs can overcome all the obstacles mentioned above. Given below are some guidelines, which NRIs can follow to ensure that they have a trouble free investment experience. In Two word- “Go Godmind”- Intelligent investing.
Ensure that the documentation is in order
Ensure that all the documentation is in order. NRIs should preserve all the statements of accounts and such other documents that concern their investments. Such documents should also be photocopied. Ensuring that all cheques have NRE/NRO printed on them also helps. We take you step by step in your process of building a fortune with your hard earned money-We invest precisely so that you can profit.
Select the investment advisor/consultant for Investment.
The first and foremost thing for NRIs to do is to ensure that they choose their investment advisor/distributor wisely. NRIs must ensure that the advisor they transact with has successfully cleared the Association of Mutual Funds of India (AMFI) accredited examination. Make sure that he has sound knowledge of the financial markets and instruments and manages portfolios soundly keeping the investor’s asset allocation in mind. This becomes an important criterion, as NRIs, like most investors, do not have the time or skill sets to conduct their own investment exercise.
At Godmind this parameters are the backbone of our services, and they guide us through the rest of the investment planning and management process.
Select the investment
advisor.
The first and foremost thing for NRIs to do is to ensure that they choose
their investment advisor/distributor wisely. NRIs must ensure that the
advisor they transact with has successfully cleared the Association of
Mutual Funds of India (AMFI) accredited examination. Make sure that he has
sound knowledge of the financial markets and instruments and manages
portfolios soundly keeping the investor’s asset allocation in mind. This
becomes an important criterion, as NRIs, like most investors, do not have
the time or skill sets to conduct their own investment exercise.
At Godmind this parameters are the backbone of our services, and they guide
us through the rest of the investment planning and management process.
Godmind
Knowledge House
