As per the regulations specified under the FEMA guidelines, NRIs are allowed to invest in mutual funds in India. The process is largely simple however you can be asked to comply with few other regulations in your country of residence. But for NRIs from the US and Canada, the compliance requirements are a bit stringent.
1. Passport copy: Passport copy submission is necessary with all the relevant pages in it that carry all such details including name, photo, address and date of birth of the investor.
2. Overseas address is also a must to provide to begin with mutual fund investment in India: Correspondence address or permanent address should be given as the overseas address.
Also, it is to be noted that asset management companies in India are not allowed to receive investments in foreign currency. So, an NRI willing to invest in mutual funds in India need to open any of the following account at a bank in India; NRO or non-resident ordinary account, FCNR or foreign currency non-resident account, NRE or non-resident external rupee account.
Other KYC requirements include a recent photograph, PAN and a bank statement. Also, an in-person verification is done which can be completed by visiting the Indian embassy in your country of residence.