The Pathway

• An SMSF member with OCI represents the SMSF in India.
• Funds move directly between the SMSF’s Australian bank and the OCI rep’s NRE/NRO account.
• Investments are in direct shares or mutual funds in India, always at arm’s length and in the OCI rep’s name.
• Indian tax returns are lodged under the OCI rep’s name.
• Australian SMSF returns declare Indian income and capital gains, claiming foreign tax credits for Indian taxes paid.
• On asset sale in India, obtain tax clearance and remit proceeds directly to the SMSF’s Australian account.

The Advantage

• Growth: Access high-growth Indian markets with returns of 15–25% p.a.
• Familiarity: Invest where you understand the market.
• Costs: Benefit from lower advice and implementation costs.

The Risk

• Market Risk: High-growth opportunities come with greater market volatility.
• Currency Risk: Strong Indian returns can be offset by adverse currency movements.
• Costs: Overseas investments may mean higher accounting and audit fees.

The Quirks

• Invest in other countries? Yes—SIS law allows SMSF investments in listed securities across 180+ countries.
• Real estate overseas? Technically yes, but SMSF trustees must prove each year:
  • Asset ownership for the SMSF
  • Asset value as at 30 June
  • All income and capital returns to the SMSF Australian auditors lack access to foreign registries, so you’ll need a licensed valuer each year—adding cost and complexity.