NYSE Arca · ETF
Invest in MFSX ETF from India
Indian and foreign residents can buy MFS Active Short Muni Bond ETF (MFSX) units directly through Paasa.
By Paasa · Updated
MFSX at a glance
- Price
- $24.62+$0.04 (0.16%)
- Expense ratio
- 0.25%
- Day range
- $24.54 – $24.62
- Assets
- $17.2M
- Domicile
- the US
- Holdings
- —
- Launched
- 2026
- Dividends
- —
Top 10 holdings
- 1Cash & Cash Equivalents12.4%
- 2ILLINOIS ST3.1%
- 3PORT AUTHOF NEW YORK NEW JE2.9%
- 4NEW YORK CITY NY TRANSITIONAL2.7%
- 5KING CNTYWA SWR REVENUE2.7%
- 6NEW YORK CITY NY MUNI WTR FIN2.7%
- 7MET WASHINGTON DC ARPTS AUTH A2.7%
- 8CALIFORNIAST MUNI FIN AUTH SO2.7%
- 9PENNSYLVANIA ST ECON DEV FING2.7%
- 10PORT OF PORTLAND OR ARPT REVEN2.6%
These 10 are 37.4% of the fund.
How to invest in MFSX from India
Step 1
Open your Paasa account
KYC takes a few minutes: PAN, Aadhaar and address proof. Your brokerage account is opened in your own name with Interactive Brokers.
Step 2
Add funds from your Indian bank account
Remit up to $250,000 a year under the RBI's Liberalised Remittance Scheme. Your bank converts the rupees to US dollars at its rate on the day you remit.
Step 3
Search MFSX and buy
Find the fund by its ticker, MFSX, on NYSE Arca, and place your order. Fractional units are available and there is no minimum trade size, so you can buy by amount.
Why invest in MFSX from India
What MFSX holds
This fund seeks to provide a high level of current income that is exempt from federal income tax. It is an actively managed exchange-traded fund that invests primarily in a portfolio of short-term, investment-grade municipal bonds.
Hold a dollar asset
MFSX is priced in US dollars, so a weaker rupee adds to what it's worth in rupees. The rupee depreciated over 85% against the dollar between 2010 and 2025.
Buy a fraction of a unit
Buy by amount, not by unit, and get the matching fraction of one MFSX unit. There is no minimum trade size.
Paasa handles the paperwork
Investing abroad brings paperwork with it: remittance filings, capital gains reporting, foreign asset disclosure. Paasa prepares all of it for you. Your India-ready tax reports arrive at year end, ready to file.
Planning to hold more than $60,000 in US ETFs? Here's what US estate tax means for you.
US-domiciled ETFs held in your own name fall under US estate tax rules. If your US holdings cross $60,000, the amount above that can be taxed at up to 40% when the account passes to your family.
A UCITS ETF tracking a similar market sits outside US estate tax.
Frequently asked questions
Can I buy MFSX from India?
Yes. Indian residents can buy MFS Active Short Muni Bond ETF (MFSX) through Paasa. It is listed on NYSE Arca and trades in US dollars. Your money leaves India under the RBI's Liberalised Remittance Scheme, and the units are held in your own name at Interactive Brokers.
What does MFSX invest in?
Its largest holdings are Cash & Cash Equivalents (12.4%), ILLINOIS ST (3.1%) and PORT AUTHOF NEW YORK NEW JE (2.9%). The fund is domiciled in the US.
What is the expense ratio of MFSX?
MFS Active Short Muni Bond ETF has an expense ratio of 0.25% a year, taken from the fund's assets rather than billed to you. The fund manages about $17.2M.
What tax do I pay in India when I sell MFSX?
The US does not levy capital gains tax on shares for Indian residents. Gains are taxable in India. Debt-oriented funds can be taxed differently from equity funds, so confirm your rate before selling. The gain is worked out in rupees at the USD/INR rate on the day you bought and the day you sold, so the currency move is part of the gain. Paasa's capital-gains statement gives you the figures for your return.
Can I buy a fraction of one MFSX unit?
Yes. You can buy by amount rather than by unit and add to your position over time. One unit is $24.62, and there is no minimum trade size.
What happens to my MFSX units if I pass away?
US-domiciled ETFs held in your own name fall under US estate tax rules. If your US holdings cross $60,000, the amount above that can be taxed at up to 40% when the account passes to your family. A UCITS ETF tracking a similar market sits outside US estate tax. Paasa's US estate tax calculator shows the exposure for a given portfolio value.