Planning Your Future as an NRI with Growth Oriented Mutual Funds

Introduction

Let's be real, the way medical expenses are climbing in India, we're talking a good 10-15% jump every year for the last decade, it can feel like a real punch to the gut. Growth oriented mutual funds offer a solid way out of this chaos.

They present a proactive approach to a financial challenge that seems to loom larger with each passing year. Inflation just keeps making things pricier, and that includes treatments too.

So, what can we do about it? Well, one smart way to tackle this head-on is by thinking ahead and planning our finances. Consequently, growth oriented mutual funds come into the picture as a compelling option. 

Furthermore, experts believe that allocating a portion of your investments to growth-oriented mutual funds creates a financial buffer that might help you navigate the uncertainties of expenses down the line.

Explore the how to invest in Indus and see how investing with Indus can significantly ease your burden. 

What Exactly Are Growth Oriented Mutual Funds?

Alright, so you've heard the term, but what's the lowdown on growth oriented mutual funds? 

Simply put, these are like investment pots where a bunch of people pool their money, and then smart folks (fund managers) invest it mainly in the shares of companies. 

The main aim here isn't to get regular income, but rather to see your investment grow over time – that's the "growth" part. 

They're looking for companies that they think will do well and whose share prices will go up, so your investment grows too. Think of it as planting a seed and hoping it grows into a big tree.

Now, there are different flavors of these growth oriented mutual funds India, depending on where they put their money:

• Large-Cap Funds: These invest in really big, well-known companies. They might not grow as fast as smaller ones, but they're generally seen as a bit more stable for Growth oriented mutual funds.

• Mid-Cap Funds: These focus on companies that are not the biggest but aren't tiny either. Furthermore, they often have a good potential to grow, maybe even faster than the big boys, but can be a bit more up and down.

• Small-Cap Funds: These go for the smaller companies, which have the potential for really high growth but can also be riskier.

• Sector-Specific Funds: These focus on particular industries that are expected to boom, like healthcare or tech. If the sector does well, these funds can really take off, but if it stumbles, so might your investment. Moreover, for NRIs thinking about healthcare costs, growth oriented mutual funds focused on healthcare might sound interesting.

• Flexi-Cap Funds: These are cool because the fund manager can invest in companies of any size – big, medium, or small – depending on where they see the best growth opportunities.

Why Should NRIs Even Consider These?

Several NRIs invest in growth oriented mutual funds over stocks. Why? Let’s get into it and dot the i’s and cross the t’s to understand better.

• Chasing Good Mutual Fund Returns: Over the long haul, the stock market has often given returns that beat inflation. And since growth oriented mutual funds are all about growth, they have the potential to give us those higher returns we need to keep up with rising healthcare costs.

Note: While considering mutual funds, ensure to check their exit load and expense ratios. These are some of the most commonly overlooked parameters.

• Putting Eggs in Different Baskets: Instead of just picking a few stocks ourselves (which can be risky if we don't know what we're doing), mutual funds, growth oriented mutual funds invest in a whole bunch of different companies. Additionally, this spreads out the risk, so if one company doesn't do so well, it doesn't sink your whole investment.

• Letting the Pros Handle It: Let's face it, we're busy with our lives overseas. We might not have the time to constantly research companies and keep up with the market for growth oriented mutual funds. That's where professional fund managers come in. They do all that hard work for us.

• Easy to Get In and Out (Relatively): While we're thinking about growth oriented mutual funds for the long-term here, if we ever need the money, we can usually sell our mutual fund units without too much hassle (though there might be some charges depending on how long we've held them).

• Small Steps to Big Savings (SIPs): You don't need to have a huge chunk of money to start. With something called a Systematic Investment Plan, you can invest a small amount regularly – like every month. This can make it easier on the wallet and also helps with something called rupee cost averaging, which can be pretty neat. Check out how SIPs work in India. Also, read some of the common SIP myths which you need to know before investing.

When Healthcare Inflation Meets Investment Plans

The rising costs of healthcare, often referred to as healthcare inflation, pose a significant financial challenge, especially for NRIs supporting families back home. To counter this escalating expense, strategic investment planning becomes crucial. 

Moreover, growth oriented mutual funds offer a potential avenue to build a dedicated corpus that can outpace inflation over the long term, thereby providing financial security for future medical needs.

The Ever-Rising Costs

We've already touched on it, but it's worth digging a bit deeper into  Growth oriented mutual funds and see just how much healthcare costs are going up in India. 

Moreover, various sources confirm that medical inflation has been consistently outpacing general inflation. 

Think about it – new technologies, specialized treatments, and even just the increasing demand for quality healthcare all contribute to this. And it's not just the treatments themselves; even health insurance premiums seem to be on a never-ending climb. 

If we don't plan for this, we could find ourselves in a tight spot down the line.

Investing: Your Shield Against Rising Costs

Here's the cool part: investing in growth oriented mutual funds can act like a shield against this healthcare inflation monster. 

Furthermore, while the cost of getting medical help keeps going up, the returns we could potentially get from these funds over the long term might just outpace that inflation.

Now, if you had invested that ₹50,000 in growth oriented mutual funds that gives you an average return of, say, 12% per year, after five years, your investment could potentially grow to about ₹88,117. See how that works? 

Thus, your investment has grown faster than the cost of healthcare, giving you a better chance of covering those future expenses.

Popular Growth Oriented Mutual Funds for NRIs in 2025

Okay, so you're thinking, "But which growth oriented mutual funds should I consider?" 

Now, remember, past performance isn't a guarantee of the future, and it's always a good idea to do your own research and maybe even talk to a financial advisor. 

You can use Nifty Alpha and Momentum Index Funds as benchmark to track the performance of your funds.

But, as of mid-2025, here are a few funds that have been catching the attention of the investors:

Popular Funds on the Indus App

• HDFC Flexi Cap Fund: This one's a popular choice because it can invest in companies of all sizes. The fund managers have a good track record, and it's known for adapting to different market conditions.

• SBI Healthcare Opportunities Fund: This fund invests in companies involved in pharmaceuticals, hospitals, diagnostics, and all that jazz. Remember, sector-specific funds can be a bit more volatile.

• ICICI Prudential Technology Fund: While not directly healthcare-focused, the tech sector in India is booming, and this fund invests is considered by many investors.

What to Check

When you're checking out these or any other growth oriented mutual funds, here are a few things to keep in mind:

• How Have They Done Before? Investors usually look at the growth oriented mutual funds returns over the past few years. How have they compared to similar funds and the overall market?

• What Do the Ratings Say? Agencies like CRISIL or Morningstar give ratings to mutual funds based on their performance and risk. These can be helpful.

• What Are the Fees? Every mutual fund charges a bit to manage your money. This is called the expense ratio. Lower fees may mean more of your returns stay with you.

• Who's Calling the Shots? Get to know the fund manager and their experience. What's their investment strategy? Do they have a good track record?

Investors usually read the Scheme Information Document to get a better understanding.

Why These Might Be Preferred for NRIs

These kinds of growth oriented mutual funds can be a consideration for NRIs because:

• Thinking Long-Term: We're usually planning for the future healthcare needs of our families, which is a long-term goal. Moreover, equity funds, like these, hold the potential to give better returns over longer periods.

• Riding the India Growth Wave: There are growing sectors like healthcare and technology that are expected to expand significantly.

• Rupee Power: Over time, the Indian Rupee might appreciate against other currencies, which could further boost the returns when you eventually need to use the money.

How NRIs Can Actually Start Investing in Growth Oriented Mutual Funds

For NRIs looking to invest in the Indian equity market, growth oriented mutual funds present a viable investment option. 

Moreover, the process typically involves completing KYC (Know Your Customer) procedures, opening a demat and trading account or directly investing through mutual fund platforms, and then setting up SIPs or making lump-sum investments in the chosen funds. 

The Legalities

Okay, before we jump in, there are a few rules we NRIs need to know when investing in growth oriented mutual funds or just investing in India. 

Additionally, the Foreign Exchange Management Act (FEMA) lays down the guidelines. We can generally invest through two types of bank accounts:

• NRE Account (Non-Resident External) : Money in this account is usually earned overseas, and it's pretty easy to take it back out of India later (though any returns we make in India might be taxed there).

• NRO (Non-Resident Ordinary) Account: This is for income we earn in India, like rent. We can invest through this account too, but taking the principal and returns back might have some limits.

It's super important to understand these rules and pick a suitable account for your investing in India journey. 

But, you know what is easier? Not needing either of this. Indus swooped in with a solution to this. 

Getting Your Ducks in a Row

To start investing in growth oriented mutual funds India, here's what you'll generally need to do: 

1. Open an NRE or NRO Bank Account: You can usually do this online or by visiting a branch of a bank authorized for NRI services.

2. Get Your KYC Sorted: KYC stands for "Know Your Customer." It's a one-time process to verify your identity and address. You'll likely need to provide copies of your passport, overseas address proof, and other documents. Luckily, online KYC processes are making this much quicker these days.

However thank Indus for making all this simplified. You don’t need to do all this, because we solved it. 

The Investing Steps

Once you're all set with your account and KYC, here's how you can start investing in those growth oriented mutual funds:

1. Pick Your Funds: Based on what we talked about earlier (your risk tolerance, how long you want to invest, etc.), choose the growth oriented mutual funds that seem like a good fit. Platforms like Indus can show you a wide range of options.

2. Lump Sum or Regular Sips? In addition, you can either invest a big amount all at once (lump sum) or invest a fixed amount regularly (SIP). For long-term goals like healthcare, SIPs are often a smart way to go.

3. Fill Out the Forms: You'll need to fill out an application form for the mutual fund. This can usually be done online these days.

4. Pay Up: You'll need to transfer the money from your NRE or NRO account to the mutual fund.

5. Keep an Eye On Things: Once you've invested, don't just forget about it. Regularly check how your growth oriented mutual funds are performing and make sure they're still on track to meet your goals.

While considering mutual funds, ensure to check out mutual fund overlap. You should also be watchful of certain mutual fund mistakes.

The Tax Part

Just a heads-up, any money you make from your growth oriented mutual funds or just mutual fund investments in India might be taxed in India. 

Furthermore, the rules depend on whether you're selling your investment within a year (short-term capital gains) or after a year (long-term capital gains), and also on the type of fund (equity-oriented or not). 

There might also be something called Tax Deducted at Source (TDS) on some of your earnings. Lastly, it's always a good idea to chat with a tax advisor who knows the rules for both India and the country you live in to make sure you're doing everything right.

Making it Easy with Indus

Indus is a platform that's specifically designed to make investing in India super smooth for us NRIs. We get that investing needs  to be easy and efficient.

We work through the Double Taxation Avoidance Agreement for you, paving way for easy tax compliance.

Cool Things About Indus

• Tons of Choices: They've got access to over 500 different mutual funds, including a whole bunch of growth oriented mutual funds. This means you can compare different options without having to hop around to a million different websites.

• Good Exchange Rates: When we send money from overseas, the exchange rate matters a lot. Indus offers a competitive FX rate of around 1%, which can save us money in the long run and boost our returns.

• Quick KYC: Remember that KYC thing? Indus has made it lightning fast – they often get it done in about 3 minutes. That means you can start investing much sooner.

What's Coming Up?

Indus however is currently not offering any growth-oriented mutual funds. But we are always looking to get better. 

We’re planning to add even more features, like direct investment options and other ways for us NRIs to invest in India.

Let’s Talk Real with a Case Study

An individual wants to build a healthcare fund of ₹15 lakh over the next 8 years for their parents. They plan to invest ₹12,000 per month through Systematic Investment Plans in growth oriented mutual funds. 

The allocation is ₹6,000 per month in each of two different funds. Assuming these investments yield an average annual return of 11%, let's look at how the investment might grow over the 8-year period.

Here's a simplified projection:

1. Monthly Investment: ₹12,000

2. Investment Horizon: 8 years (96 months)

3. Assumed Average Annual Return: 11%

While it's impossible to predict exact returns from mutual funds, which are subject to market fluctuations, we can get an estimated idea of the potential growth using the power of compounding.

If their investments in these growth oriented mutual funds give an average annual return of around 11%, here's a rough idea of how their money might grow over 8 years:

It's important to remember that this is a simplified illustration. Actual returns can vary significantly based on market conditions and the performance of the specific mutual funds chosen. 

Moreover, factors like expense ratios of the funds and taxation on the gains of growth oriented mutual funds would also influence the final outcome. 

Strategy Breakdown

• Mixing It Up: Investors usually choose a broad flexi-cap fund and a healthcare-specific fund to get both overall growth and a targeted exposure.

• Regular Contributions: For a lot of people, using SIPs is a popular option because SIPs makes it easier to invest consistently without needing a huge sum upfront. SIPs create a disciplined form of investment. 

• Thinking Long-Term: An average 8-year timeframe gives investments time to potentially grow.

• Keep an Eye Out: Investors usually check in on their investments every now and then to make sure they're still on track.

Lastly, this shows how a smart plan with growth oriented mutual funds can help NRIs work towards those important financial goals.

Risks and Considerations in Growth Oriented Mutual Fund Investments

While offering the potential for maximized returns, growth oriented mutual funds are inherently linked to market volatility and carry certain risks. 

Factors such as market fluctuations, economic downturns, and the specific investment strategy of the fund can impact the returns. 

Therefore, a thorough understanding of these risks and aligning investments with individual risk tolerance and financial goals is essential before investing.

The Market Can Be Bumpy

Since growth oriented mutual funds invest in stocks, their value can go up and down with the market. This is called volatility. There will be times when your investments might not grow as much as you hoped, or even lose some value.

How to Handle the Bumps

It's wise to understand your own risk tolerance before diving into growth oriented mutual funds. 

Investors opt for a conservation approach because of the apparent market fluctuations. A popular investment strategy is allocating a smaller portion of investments to pure growth oriented mutual funds and balancing it with more stable options.

Moreover, don't forget the power of knowledge. Before you decide on any growth oriented mutual funds India, take the time to understand their investment strategy, the fund manager's experience, and the underlying risks involved. 

By doing so, you'll be better equipped to make informed decisions and stay calm during market ups and downs.

Additionally, remember that investing in India, especially in equity-linked instruments like growth oriented mutual funds, is generally a long-term game. Therefore, try to avoid making impulsive decisions based on short-term market movements. 

Instead, focus on your long-term financial goals, such as building that healthcare corpus for your family.

Finally, don't hesitate to seek professional advice. If you're feeling unsure about which best growth oriented mutual funds to choose or how to manage your portfolio, consider consulting a qualified financial advisor who understands the specific needs of NRIs. 

They can provide personalized guidance based on your financial situation and goals.

Conclusion

So, there you have it. Planning for the future, especially when it comes to the ever-increasing healthcare costs in India, is a crucial responsibility for us NRIs. 

Growth oriented mutual funds stand out as a powerful tool in our arsenal to tackle this challenge. Investing in mutual funds offers the potential to outpace inflation and build a substantial financial cushion for our loved ones back home.

To recap, by understanding what growth oriented mutual funds India are all about, navigating the process of investing in India as an NRI, and carefully selecting some of the best growth oriented mutual funds that align with our goals. 

Platforms like Indus are making this journey smoother and more accessible than ever before.

Ultimately, while there are inherent risks involved in equity investments, adopting a long-term perspective, diversifying our portfolio, and staying informed can help us navigate the market's ups and downs. 

Therefore, take that first step today. Explore the potential of growth oriented mutual funds and start building a more secure future for your family in India.

FAQs on Growth Oriented Mutual Funds

1. What exactly are Growth Oriented Mutual Funds? 

Growth oriented mutual funds primarily invest in equity and equity-related instruments with the aim of achieving capital appreciation over the long term. Additionally, these funds typically have a higher risk-return profile compared to debt or balanced funds.

2. Are Growth Oriented Mutual Funds suitable for all investors? 

Growth oriented mutual funds are generally considered suitable for investors with a higher risk appetite and a long-term investment horizon. Furthermore, investors seeking stable returns and having a shorter time frame might find other investment options more appropriate.

3. What are the potential benefits of investing in Growth Oriented Mutual Funds? 

The main benefit of growth oriented mutual funds is the potential for generating higher returns compared to traditional investment avenues, potentially outpacing inflation and helping to build a significant corpus over time. However, these returns are not guaranteed.

4. What are the key risks associated with Growth Oriented Mutual Funds? 

The primary risks associated with growth oriented mutual funds include market volatility, where the value of investments can fluctuate significantly based on market conditions and economic factors. Moreover, there's also the risk of underperforming the benchmark index.

5. How can I invest in Growth Oriented Mutual Funds?

You can invest in growth oriented mutual funds through various channels, including online platforms of mutual fund houses, brokerage accounts, and financial advisors. Typically, you'll need to complete KYC and choose between a lump-sum investment or a Systematic Investment Plan (SIP).

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.