Most Mutual Funds, Portfolio Management Services and Alternative Investment Funds ( MFs, PMS, and AIFs ) do not accept investments of NRIs from the USA and Canada because of the cumbersome compliance requirements under FATCA or Foreign Account Tax Compliance Act. But, over years, some fund houses have consulted each other and experts on this matter, and a few of them have considered taking investments from USA and Canada based investors. But, Under FATCA, it is compulsory for all financial institutions accepting US & Canada NRI investments, to share the details of transactions the US Government. FATCA ensures that there is no deliberate tax evasion on income generated overseas. India has a double taxation avoidance agreement with both the North American countries thus Investors effectively have to pay tax at a concessional rate