Are there any hedged international funds in India?
No there aren't any such funds. There aren't and for a good reason. The long term trend of INR against USD, GBP, EUR and other harder currencies is down. Given the inflation differential between these economies and India's, fund managers and investors should expect this to continue. Therefore, if you are invested for any reasonable length of time, you would expect the forex movements to add to your returns. Historically, this has been true of international funds run in India.
"According to the FT article mentioned in the Reuters piece:  ""GSAM blamed the large outflows this year on investors pulling out of its money market funds, short-term investment vehicles that provide clients with a liquid alternative to cash. A spokesman added that the company’s mutual fund range, excluding money market funds, had inflows so far this year.""  also this...  ""Traditional asset managers such as Goldman, which has the majority of its assets in actively managed funds, have been hurt by investors dumping stockpickers for cheaper passive funds that track an index  (...)  Last year, bosses at the fund division told GSAM’s 2,000 employees that they must cut spending and banned all travel that was not associated with meeting clients and winning new business (...) Earlier this year, the company shut down the London operations of its internal hedge fund, which sits in investment banking, and told staff to move to the US or find a new job internally (...) The company has been affected by changes in the US money market sector, where new rules to strengthen investor protection and liquidity in the strategies were introduced last year. The prospect of rising interest rates and the potential for better returns are also making investors consider other investment funds.""   Source: That FT article" What taxes will I have to pay to India?  Income earned outside of India when your status is Non-Resident Indian, there is no tax applicable. You can repatriate the funds back to India within 7 years without any tax event. Someone else may put an answer about US taxes. Would I have to pay income tax other then TDS on interest earned on my saving bank account. No being NRI you are not taxed in India on income outside of India. I am sending money from EU to my OWN saving account. Please note this account is not NRI\NRO\FCNR As an NRI you CANNOT by law hold a regular Savings Account. Please convert this account to NRO ASAP. Does the channel I use to transfer money to India would make any difference? Its 3rd party transfer service. Whether you transfer the funds or not is irrelevant. As the income was during the period when your status is NRI, there is no Tax in India. sold some shares from my Indian demat account online and got some STCG. You would need to pay tax on this in India Edit:   Self Assessment Tax can be paid till 30 July 2015 for the Financial Year 1 April 2014 to 31 March 2015. Tax have to be paid in advance, so if your tax obligation is more than Rs 10,000/- there will be an interest at 1% per month and penalty at 1% per month payable The conclusions of this report seem to conflict with some of the long-term trends in asset management. The gradual decline of defined-benefit plans (e.g. pensions) and the growth of defined-contribution (401k) have altered the asset mix.  The biggest investors in hedge funds have traditionally been pension management funds; given the long-standing decline in private sector pensions and the (seemingly) near-future decline in public-employee pensions, the funds that can only be accessed by institutional investors or accredited investors (eg all hedge funds) stand to lose.   Explained another way: right now, only rich people and institutional investors get access to hedge funds. Your 401K money can't go into them, and neither can your IRA. If you're not an accredited investor (income of &gt;$250K, net worth of $1MM+ excl. primary residence) you can't subscribe. You can only get into hedge funds through buying into a 'fund of funds' type of investment, where you buy a fund (and pay that fund) so that they can pay a hedge manager to manage the money. Think of a pass-through entity that skims some off the top and manages portfolio risk. So, as fewer people get pensions (and the pensions that they do get are smaller), these pension funds have fewer assets left to invest in hedge funds.   Most hedge funds return zero alpha after fees and arguably have lower risk-adjusted returns than simpler investments. But 15-20% of all hedge funds do pretty well. Picking which 15-20%....that's difficult.   Bottom line: what is Citi pushing with this report? You can, and people do. More a Japanese thing than a US thing but I guess they've had super low interest rates for longer. Its called 'the carry trade' and is the reason the NZD is artificially high (which as an NZ exporter I find kinda annoying). Particularly popular with the so called 'japanese housewife' investor.  It also causes the NZD to plunge every time the US stock market dips - because the NZD is held mostly as a moderately risky investment, not for trade purposes. Presumably in a down market hedge funds need to cash in their carry trades to cover margins or something?   As another person said the primary risk is currency fluctuations. Unfortunately such currencies are highly volatile and tied to stock market volatility.  tl;dr It'd be nice if you all quit treating my national currency as an investment opportunity - then i could get on with my business as an New Zealand exporter ;-) The Interest rate of 3% and 7.5% is for funds held in regular savings account that are denominated in Rupee. Moving these funds back to US will require compliance with Indian Foreign Exchange Act. If you are not intending to move funds back to US, then this would be good move. However you would still need to pay tax in US on the interest generated as personal tax in US requires one to pay tax on income world wide. As also pointed out by others, there is a risk of FX Conversion. The other option is to hold funds in NRE or USD denominated acounts where funds can be moved back to US without any hassel and are held in USD. However the interest rate on these accounts is similar to what one would get in US, slightly better at best. So you need to figure out if you need the funds back in US, then I guess keeping it in US would be a good move. However if you do not need the funds back in US, then moving it to India would make sense. "My tax preparing agent is suggesting that since the stock brokers in   India does not have any US state ITINS, it becomes complicated to file   that income along with US taxes Why? Nothing to do with each other. You need to have ITIN (or, SSN more likely, since you're on H1b). What brokers have have nothing to do with you. You must report these gains on your US tax return, and beware of the PFIC rules when you do it. He says, I can file those taxes separately in India. You file Indian tax return in India, but it has nothing to do with the US. You'll have to deal with the tax treaty/foreign tax credits to co-ordinate. How complicated is it to include Indian capital gains along with US   taxes? ""How complicated"" is really irrelevant. But in any case - there's no difference between Indian capital gains and American capital gains, unless PFIC/Trusts/Mutual funds are involved. Then it becomes complicated, but being complicated is not enough to not report it. If PIFC/Trusts/Mutual funds aren't involved, you just report this on Schedule D as usual. Did anybody face similar situation More or less every American living abroad. Also the financial years are different in India and US Irrelevant." Here is a list of threads in other subreddits about the same content:   * [India's Banks Need More Than a Bailout](https://www.reddit.com/r/Economics/comments/78stf0/indias_banks_need_more_than_a_bailout/) on /r/Economics with 1 karma (created at 2017-10-26 10:53:41 by /u/DoremusJessup)  ----   ^^I ^^am ^^a ^^bot  ^^[FAQ](https://www.reddit.com/r/DuplicatesBot/wiki/index)-[Code](https://github.com/PokestarFan/DuplicateBot)-[Bugs](https://www.reddit.com/r/DuplicatesBot/comments/6ypgmx/bugs_and_problems/)-[Suggestions](https://www.reddit.com/r/DuplicatesBot/comments/6ypg85/suggestion_for_duplicatesbot/)-[Block](https://www.reddit.com/r/DuplicatesBot/wiki/index#wiki_block_bot_from_tagging_on_your_posts)  ^^Now ^^you ^^can ^^remove ^^the ^^comment ^^by ^^replying ^^delete!