With the Indian market growing rapidly, NRIs are keen on putting their money in the Indian market. There are several NRI investment options in India, such as mutual funds, equity stocks, IPOs, ETF, bonds, etc. However, investment instruments like equity, bonds, mutual funds and more have their restrictions. For example, some mutual fund companies don’t accept applications from NRIs in the USA and Canada. Here we will discuss common problems faced by NRIs when investing in India.
Investments in India for an NRI holds immense potential. NRI Investment encompasses a plethora of investment vehicles that most of the people are unaware of. There is this huge range of opportunities where NRIs can invest and generate lucrative returns.
Let’s glance through the basic segregation here:
- NRI Bank Accounts: Open an NRE, NRO or FCNR Bank Account and earn tax-free interest on your deposits (for NRE & FCNR)
- Investment in various Asset Classes: Most of the asset classes like Mutual Funds, Stocks, Portfolio Management Services, National Pension Scheme, etc. are available for NRIs to invest money in and earn maximum profits
- Real Estate: Real Estate is another investment tool for NRIs in India with a great return on investment (ROI)
- Gold Investments: Gold is another investment tool in India. It is an excellent choice given the rate of growth in the prices over the years. You can choose from a variety of options such as physical gold, Gold Exchange Traded Funds (ETFs), Gold Bonds etc.
- Insurance: Insurance is another investment tool in India, especially for NRIs. Everyone must get insurance as a part of Financial Planning
Financial Planning in India: An Approach
Mrs. Shruti Agarwal (CFA, Co-Founder of CAGRFunds) iterates: There are 3 fundamentals of Financial Planning:
- Emergency Fund
- Health Insurance
She stresses on the importance of managing these three pillars of financial planning. NRI Investment in India must be targeted at either or all of these approaches. There is a need to have an emergency fund to tackle emergencies which should generally be three times of your salary. A Health Insurance to battle the risks of accidents one might encounter and Investments to multiply funds by generating better returns.
NRI Investment in India: An Outlook
Investments in India by an NRI can be looked upon as a gesture to secure the future and aim at a happy life after retirement. Most NRIs go ahead with investments with a vision to create a corpus. This fund can be for any reason suited to the NRI such as their children’s marriage, education, etc. or maybe to take a world tour.
Investments are also done in kinds, such as real estate, gold etc. Objectives can fluctuate between liquidity or greater returns on investments. The diversification that investments in India provide ranges widely in all major financial sectors. With time, NRIs have gained easy and convenient access to these opportunities and with the help of market experts, tremendous returns can be garnered.
In this category, you will find questions and articles spanning all the way around investments in India for an NRI. With the incessant growth of NRI Investment in India, it is necessary that an NRI knows about every option there is to experiment and extract benefits from.
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