As we are stepping into the promising horizon of 2024, it’s a great time for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) to reflect on their financial goals and make resolutions that will pave the way for a secure and prosperous future. Whether you are planning for your children’s education, retirement, or wealth preservation, setting financial resolutions can be a powerful way to achieve your objectives. Here are five financial resolutions for NRIs/OCIs to consider making in the New Year 2024.
Top 5 Financial Resolutions for NRIs/OCIs in 2024
1. Set Clear Financial Goals
One of the primary financial resolutions for NRIs/OCIs should be to define your short-term and long-term financial goals for the New Year. Whether it’s buying a home, funding your child’s education, or building a retirement fund, setting clear and achievable goals provides direction to your financial planning. Break down larger goals into smaller, manageable milestones, making it easier to track your progress. Regularly reassess and adjust your goals as life circumstances change, ensuring your financial plan remains aligned with your aspirations.
Also read: Top 5 Tips for NRIs to Pick a Winning Mutual Fund
2. Invest in India for Growth
Over 53 per cent of NRIs believe that India provides a favorable ROI for investors. By investing in Indian markets, you enhance the potential for returns and wealth building. NRIs can explore various options like mutual funds, bonds, commercial real estate, PMS, and more in India as a means of diversified investment strategy. Consider allocating a portion of your investment portfolio towards opportunities in India. Explore different asset classes such as mutual funds, debt securities, fixed deposits, commercial real estate, micro-VC. This not only supports the country’s development but also provides NRIs with a chance to benefit from India’s economic expansion.
Also read: Best SIP to Invest in 2024 – Top 10 SIP Mutual Fund Plans for NRIs/OCIs
3. Build a Robust Emergency Fund
Life is unpredictable, and having a financial safety net is crucial for navigating unexpected challenges. NRIs should resolve to build or reinforce their emergency fund in 2024. Aim to set aside at least six to twelve months’ worth of living expenses in a liquid and easily accessible account. This fund will act as a financial cushion, providing peace of mind during unforeseen circumstances such as job loss, health emergencies, or economic downturns.
4. Explore Tax Planning Opportunities
Taxation can be a complex and challenging aspect of investing for NRIs. Depending on your country of residence and the source of your income, you may be subject to different tax rules in both your home country and the country where you reside. It’s crucial to understand the tax implications of your investments, including capital gains tax, dividend tax, and estate tax. Consulting with a tax professional or financial advisor who specializes in NRI taxation can help you navigate these complexities and minimize your tax liabilities.
5. Prioritize Retirement Planning
Retirement planning is a critical aspect of financial well-being, and NRIs should prioritize it in 2024. Evaluate your current retirement savings and determine if adjustments are needed to meet your retirement goals. Take advantage of retirement savings options available in both your home country and the country of residence. Consider factors such as inflation, healthcare costs, and the desired lifestyle to estimate the amount needed for a comfortable retirement. The earlier you start planning for retirement, the more time your investments have to grow.
Also read: Top 5 NRI Mutual Funds for Retirement Planning 2024
Wrapping Up
Embracing these financial resolutions for NRIs/OCIs in the New Year can set them on a path to financial success and security. By setting clear financial goals, investing in India’s growth to build wealth, building a robust emergency fund, exploring tax planning opportunities, and prioritizing retirement planning, NRIs can navigate the complexities of their financial landscape and build a solid foundation for a prosperous future. As you embark on this financial journey in 2024, remember that consistency and discipline are key to achieving long-term financial success.
Invest in NRI Mutual Funds with SBNRI
NRIs can now download the SBNRI App and choose to invest in different NRI mutual fund schemes in India with ease. You can also get detailed mutual fund advice from experts at SBNRI. Also, visit our blog and YouTube channel for more details.
SBNRI is an authorized Mutual Fund Distributor platform & registered with the Association of Mutual Funds in India (AMFI). ARN No. 246671. NRIs willing to invest in mutual funds in India can download the SBNRI App to choose from 2,000+ mutual fund schemes or can connect with the SBNRI wealth team to better understand Mutual Fund investments.
FAQs
Can NRI invest in mutual funds in India?
- Yes. NRI can invest in mutual funds in India using their NRE/NRO bank account once they complete their Mutual Fund KYC.
How can NRI buy mutual funds in India?
- NRI investors can purchase or sell mutual funds in India once they complete their Mutual Fund KYC and have an operating NRO/NRE Bank account.
Can NRI invest in property in India?
- Yes. An NRI can invest in property in India but there are exceptions. Though RBI has given general permission to the NRIs to purchase immovable properties in India, the permission does not grant power to acquire any and every property in India. The NRIs are allowed to purchase only residential or commercial property. So NRIs cannot purchase any agricultural land or plantation property.
Can NRIs invest in PPF?
- Yes, NRIs can have a Public Provident Fund (PPF) and invest in it. However, an NRI can open a PPF account when he/she was a resident Indian.
Are there any tax-free investments for NRIs in India?
- Yes, there are a few tax-free options available in India for NRIs like NRE FD Account, FCNR FD Account, ELSS Funds, and Life Insurance.
Are mutual funds a good long-term investment for NRIs?
- Yes, mutual funds are a great long-term investment vehicle to generate returns and build wealth for NRIs. Investing in mutual funds for NRIs helps to utilize their savings and build wealth for the future. It also helps them to beat inflation and fulfill their investment goals.
Can NRI Invest in Retirement Mutual Funds in India?
- Yes, NRIs can invest in mutual funds in India. NRIs can easily invest in different mutual fund schemes and generate higher returns and wealth building. The FEMA Act, RBI rules, and SEBI guidelines govern the rules and regulations regarding NRI investments in mutual funds which is why it has a slightly different procedure than that of resident individuals. However, it is very easy to set up your Mutual Fund KYC and link it to your NRO/NRE bank account to invest in mutual fund schemes in India.
What is a retirement fund, and how does it differ from other investment options?
- A retirement fund is a specialized investment vehicle designed to help individuals save for their post-retirement years. It typically differs from regular investment options by focusing on a mix of assets tailored for long-term growth and income stability.
Can NRI invest in SIP in India?
- Yes, an NRI can invest in India through the SIP route. SIP stands for Systematic Investment Plan.
How to make Rs 1 crore wealth from mutual funds in 10 years?
- You can invest in a monthly SIP of Rs 43,100 for 10 years at an expected return of 12% to generate Rs 1 crore corpus at the end of 10 years. Based on the historical performance as aforementioned, the NIFTY 100 Index has provided 12.3% average annual return for the past 15 years.
How to make Rs 1 crore wealth from mutual funds in 15 years?
- You can use the rule of 15x15x15 to make a wealth of Rs 1 crore from mutual funds in 15 years. With this rule of 15x15x15, you can invest Rs 15,000 a month for 15 years at an expected return of 15% and can generate Rs 1 crore (Rs 1.01 crore approx.) after 15 years.
Can I earn Rs 1 crore from mutual funds in 10 years?
- Yes, you can earn Rs 1 crore from mutual funds in 10 years by investing in SIP on a monthly basis and become a crorepati from mutual funds.
Can NRIs become crorepati from mutual funds in 10 years?
- Yes, NRIs can invest in various mutual fund schemes in India. If an NRI invests in a monthly SIP of Rs 43,100 over 10 years at an expected return of 12%, they will have a corpus of Rs 1 crore at the end of 10 years. Based on the historical performance as aforementioned, the NIFTY 100 Index has provided 12.3% average annual return for the past 15 years.
Can NRIs become crorepati from mutual funds in 15 years?
- Yes, NRIs can become crorepati from mutual funds in 15 years by following the rule of 15x15x15 and investing Rs 15000 a month in SIP for 15 years with an expected rate of return of 15%, then they will become crorepati after 15 years with a wealth corpus of Rs 1 crore.
