The New Age of Investing in India and How Indus works!
Introduction to Indus
Indus helps you invest in Indian mutual funds from New Zealand without the usual hassles.
With Indus, you can now invest in India, just like you invest in US equities via Hatch or Sharesies, without an Indian bank account, Indian phone number, or long waits.
Forget about Indian bank accounts or complicated paperwork! Here’s a simple breakdown of how it works:
1. Getting Started: Quick and Easy
1.1 What do I need to sign up with Indus?
You just need:
A NZ Drivers license OR NZ passport
NZ Bank account
NZ Residential Address
That’s it! No Indian documents needed. You don’t need an NRE account or a DEMAT account.
1.2 How long does it take to sign up?
It’s super quick – about 3 minutes! We use Cloudcheck to run all AML/CFT checks to ensure you are fully compliant to invest in India's markets.
2. Putting Money into Your Indus Account
2.1 How do I send money to Indus?
In order to invest in India, you need to top up your Indus wallet. Send your money into a secure bank account at ASB Bank in NZ.
Indus then converts the NZD you have sent into INR which will reflect in your wallet within the app.
2.2 Where does my money go when I send it?
Your money lands in a secure bank account at ASB Bank in New Zealand which is where you send it. This account is specifically for Indus customers and holds your money safely on your behalf. Indus immediately sends the funds to our trust account with our banking partner DBS which is then converted into INR.
It’s kept separate from Indus’s operational money.
3. Turning Your NZ Dollars into Indian Rupees
3.1 Why does my money need to be in Indian Rupees (INR)?
Indian mutual funds only work with INR. So, we need to change your New Zealand Dollars (NZD) into INR.
3.2 How does Indus do the currency exchange?
When your NZD arrives in Indus's ASB account, we automatically convert into INR at the best available rate. This is done quickly and follows all the rules. No fuss.
3.3 Do you charge any fees for this currency conversion?
We charge a flat 1% fee on top of the available spot (closure to Google) rate. This is significantly cheaper than bank transfer and as good as any other money transfer app.
We charge $0 transfer fees. That’s our give.
3.4 How long does the transfer take? The money reflects in your wallet to deploy into Indian mutual funds on the same day if transferred before 2PM or the next working day. Working day is any non-banking holiday.
4. Choosing and Buying Mutual Funds
4.1 What kind of investments can I make?
You can choose from over 500 different mutual funds from well-known Indian companies (essentially Nippon, Motilal Oswal, Axis and more). These funds invest in various things like company shares or bonds.
4.2 How do I pick a mutual fund?
The Indus app lets you easily browse and filter funds based on how they’ve performed, what they invest in, how risky they are, and more.
4.3 How do I actually buy a mutual fund?
Once you find a fund you like, you can choose to invest a one-time amount or set up a regular plan like a weekly or monthly contribution like SIPs (Systematic Investment Plan).
4.4 What happens after I place an order?
Your order is sent straight to the company that manages the mutual fund. Your order is executed at the same-day NAV (Net Asset Value) if placed before the market cut-off. Otherwise, it’s priced on the next market open day.
Do note that the execution price is almost immediate but reflection in your Indus portfolio can take 3-4 days.
This is a normal procedure for all mutual funds in India.
5. Keeping Your Investments Safe
5.1 Where are my investments held?
Your Indian Rupees and the mutual fund units you buy are held securely in Indus’s account at DBS Bank India. Importantly, these are held under your complete ownership.
5.2 Are my investments safe?
Yes. Your investments are always safe. DBS India is a well-respected bank that is regulated by the Indian government (SEBI) and has a strong international credit rating.
5.3 What if something happens to Indus?
Your money and investments are kept separate and are protected by rules in India. They are also covered by insurance from major global companies like that of AIG, Zurich, and New India Assurance. So, even in an unlikely event, your assets will be safe.
6. Getting Your Money Back
6.1 How do I sell my investments and get my money back?
In the Indus app, you just tap a "Withdraw" button. We made it that easy for you!
6.2 What happens when I withdraw?
Withdrawal doesn't mean selling mutual fund units. Withdrawal happens after mutual funds are sold and you withdraw money from your wallet.
So, you have to
a) Sell your mutual funds and money will reflect in your wallet. (Exact reverse of the buying process)
b) The money reflects in your wallet - You can withdraw directly to your bank account on the same day or next day if requested after 2PM.
6.3 Is there any paperwork or extra fees for withdrawing?
No, it’s all done through the app. There are no long forms or hidden withdrawal fees eroding your pockets.
7. Understanding Taxes
7.1 Will I have to pay taxes in India?
If you make a profit on your investments (called capital gains), the Indian fund company will automatically deduct any taxes required by Indian law.
7.2 Does Indus help with taxes for Kiwi residents?
Yes! Indus works behind the scenes to handle some tax-related paperwork, which is managing the remittance certificate and applying India’s Double Taxation Avoidance Agreement (DTAA) with New Zealand.
Kiwi residents pay 0% tax on Indian mutual funds. We take care of this by applying the said DTAA, so you don’t get taxed twice.
Importantly, you’ll also receive a complete transaction statement along with your tax summaries.
We provide all of this at zero cost. We ultimately eliminate the need for accountants or tax agents in India.
In Simple Terms
You sign up quickly with your NZ details
Send money from your NZ bank (NZD)
We handle the currency exchange (NZD → INR)
You choose from many investment options, and
Your investments are kept safe in India.
When you want to cash out, we convert the money back and send it to your NZ bank (INR → NZD)
We even help with the tricky part of Indian taxes with transaction statements and tax summaries.
Standard Disclaimer
Investing involves risk, and returns are not guaranteed. Please conduct your own research before making any investment decisions. This information is provided for general purposes only and does not constitute financial advice.
Indus does not provide investment, financial, legal, or tax advice. While we facilitate access to Indian mutual funds, any decision to invest is solely your responsibility. You should consult a qualified financial adviser or tax specialist before making any investment or tax-related decisions, especially if you are uncertain about how these investments apply.
