NRIs can carry out investment in Mutual Fund on repatriation basis in which the principal amount, dividend as also capital gains can fully be repatriated / remitted abroad or credited into Non Resident External (NRE) account.

To gain repatriation, initially investment should be made from Non Resident External (NRE) account or Foreign Exchange Remittance from abroad.   

Even though investment is permissible from Foreign Currency Non Resident (FCNR) account,  just about all investment can not be made from FCNR account but for only  when balance is transferred / credited into Non Resident External (NRE) account as mutual fund investments in India is predominantly in Rupees and FCNR accounts being term deposits. 

Such repatriation is subject to payment of tax as applicable in India.