In recent years, the Indian economy has witnessed significant growth, attracting a considerable number of Non-Resident Indians (NRIs) to explore investment opportunities in their home country. With the rise of global tech giants like Amazon, many Indian professionals have found lucrative opportunities abroad, working for companies that have a strong presence in the international market. Amazon, being one of the largest e-commerce and technology companies globally, boasts a substantial number of NRI and Indian employees, upwards of 1,00,000, roughly 7% of their total workforce. This blog will look into the top 5 investment choices for Amazon NRI employees in India and why is it important to invest in India for NRIs.
Did you know: A Quick Fun Fact
Amazon is part of the MAANG (Formely FAANG) companies, an acronym provided to the biggest tech giant companies, i.e. Meta, Amazon, Apple, Netflix, and Google (Alphabet). It was coined by Jim Cramer in the popular CNBC show Mad Money as FANG, which included Facebook, Amazon, Netflix, and Google at the time. Apple was added to the list to make it FAANG in 2017. Since Facebook shifted to the name Meta, the term has become MAANG.
Also read: 10 Mutual Funds That Doubled Wealth In 5 Years
Top 5 Best Investment Options in India for Amazon NRI Employees
Given the diverse investment landscape in India, Amazon NRI employees have several options to consider. Here are the top 5 investment choices tailored for them:
1. Mutual Funds
Mutual funds aggregate investments from diverse sources and utilize the funds to invest across various avenues such as equity, government securities, bonds, and more. An ideal choice for Microsoft NRI Employees with limited knowledge of the Indian market, mutual funds enable fund managers to make investment decisions on behalf of investors, facilitating the achievement of their financial goals.
Mutual funds can offer much higher returns than bank FDs and can be a good option to start your investment in India. There are several NRI mutual fund schemes in India for NRI investors. However, for Microsoft NRI Employees from the US and Canada, there are a few compliance requirements under FACTA to be completed. Thus, only a select few AMCs offer mutual funds for NRIs based in the USA and Canada.
Also read: Best SIP to Invest in 2024 – Top 10 SIP Mutual Fund Plans for NRIs/OCIs
2. Commercial Real Estate
Real estate has been a traditional long-term investment option with the Indian diaspora. With new investment options like Commercial real estate becoming a prominent option, the investment options for NRIs have increased multifold. Over 52 percent of NRIs looking to invest in commercial real estate properties as a means of portfolio diversification and long-term wealth generation. NRIs can invest in various commercial real estate properties and earn stable, high-yield, and risk-free returns.
Also read: Bhive Investment Review: Bhive Workspace & Bhive Alts Review
3. Portfolio Management Services (PMS)
Portfolio Management Services (PMS) allows Microsoft NRI employees with a high disposable investment to invest in the Indian equity market and generate returns. Fund managers make the decisions on behalf of the investors and invest in the desired portfolio of stocks as per the investment goals and risk tolerance of the investor. NRI investors can invest in PMS with Rs 50 lacs and curate a tailored portfolio for themselves.
4. Fixed Deposits
Fixed Deposits are the most common investment options for NRIs living or working abroad. FDs are one of the safe investment options for NRI in India to invest and earn fixed income over a predefined period. There are three types NRI Fixed Deposit Accounts:
- Non-Resident External (NRE) Account
- Non-Resident Ordinary (NRO) Account
- Foreign Currency Non-Resident (Bank) [FCNR(B)] Account
Let’s understand these NRI fixed deposit accounts:
- Non-Resident External (NRE) Fixed Deposit: NRE FD accounts are opened by NRIs to deposit their foreign earnings in Indian rupees. NRE FD account interest rate ranges from 2.75% to 7% p.a. The interest earned in an NRE account is tax-free in India but may be taxed in your country of residence. Both the principal as well as the interest earned can be fully repatriated.
- Non-Resident Ordinary (NRO) Fixed Deposit: NRIs can open an NRO Fixed Deposit account to maintain and save their income generated in India, such as dividends, rental income, pension, etc. You can earn up to a 7.30%* interest rate on these accounts. Interest earned on the funds is taxable in India at 30% along with surcharge and cess.
- Foreign Currency Non-Resident (Bank) [FCNR(B)] Fixed Deposit: An FCNR (B) fixed deposit account allows NRIs to deposit funds in a foreign currency in India, such as USD, GBP, EUR, JPY, AUD, CAD, SGD, HKD, and others. You can deposit money for different terms, like 12 months, 24 months, 36 months, 48 months, or 60 months. An FCNR account helps NRIs avoid currency fluctuation. FCNR FD interest rates vary based on the currency. The interest income is not taxable in India and both the principal amount as well as the interest are completely repatriable.
Also read: NRE Fixed Deposit Rates 2024: Top Banks for NRE FDs
5. National Pension Scheme
National Pension Scheme or NPS can be one more reliable source of investment for NRIs from Canada in India. NPS scheme is fully backed by the government and allows NRIs to invest in equity funds, debts, or a combination of both.
Individuals between the ages of 18 years and 60 years can invest in NPS with minimal documents like a PAN card and an Aadhaar card. You need a Non-Resident External (NRE) account or a Non-Resident Ordinary (NRO) account when investing in NPS.
Importance of Investing for NRIs
Investing is a crucial aspect of financial planning for NRIs, providing them with the means to grow their wealth, achieve financial goals, and create a safety net for the future. Here are some key reasons why investing is essential for NRIs, especially those working for global corporations like Amazon:
- Wealth Growth: Investing allows NRIs to grow their wealth beyond conventional savings methods. With a diverse range of investment options available, NRIs can benefit from the potential for higher returns, helping them build a robust financial portfolio.
- Currency Diversification: NRIs often receive their income in foreign currencies. Investing in India provides an opportunity for currency diversification, reducing dependency on a single currency and potentially mitigating risks associated with currency fluctuations.
- Future Planning: Investments play a crucial role in long-term financial planning. NRIs can use their investment returns to fund education, buy property, or ensure a comfortable retirement for themselves and their families.
- Contributing to India’s Growth: By investing in India, NRIs contribute to the country’s economic development. This not only aligns with the broader goal of nation-building but also allows NRIs to be a part of India’s growth story.
Wrapping Up
Investing is a powerful tool for NRIs, and NRIs working at Amazon have a unique advantage to invest and build a sizeable corpus for them based on their financial goals. By strategically choosing from the diverse investment options available, Amazon NRI employees can secure their financial future while actively participating in India’s economic development.
How to Invest in India as NRI Amazon Employee
NRIs working in Amazon and other MAANG companies can now download the SBNRI App and choose to invest in different investment options in India with ease. You can also get detailed investment 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 Indian NRI employees from Amazon invest in the Indian stock market?
- Yes. NRIs working in Amazon can invest in the Indian Stock Market by buying stocks listed on the National Stock Exchange of India Ltd. (NSE) under the Portfolio Management Service (PMS).
Can Amazon NRI Employee invest in India with just a PAN Card?
- Yes, NRIs working in Amazon can use a PAN card and NRE/NRO account to invest in a mutual fund. To invest in shares, NRIs need an NRE account under PIS bank or NRO account, a bank account, and a Demat account.
Can NRIs working in Amazon have 2 demat accounts?
- Yes. A non-resident Indian working in Amazon and other MAANG companies can have multiple demat accounts. The usage of these multiple demat accounts can be understood under the concepts of:
1. Repatriation: NRIs must have separate demat accounts for repatriable (NRE) and non-repatriable (NRO) shares which means if you invest through your NRE account, the money you receive after selling the shares/stocks is completely and freely repatriable whereas investments through NRO accounts will have to be initially settled by paying applicable taxes and then they can be repatriated. NRE accounts are used to buy shares (equity) on a repatriable basis and NRO accounts are used to invest in shares (equity and derivatives) on a non-repatriable basis. The NRE/NRO Accounts can be used to invest in the primary market without PIS (Portfolio Investment Scheme) (eg: IPOs, Mutual Funds)
2. Market Variation: To invest in the secondary market, you need a separate bank account to hold your investment funds linked to the Portfolio Investment Scheme (PIS). This account can not be your regular NRE/NRO account and this account will be linked to a demat account to hold your shares as directed by RBI.
Can Amazon NRI Employees invest in property in India?
- Yes, Amazon NRI Employees 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 is a resident Indian.
Are there any tax-free investments for NRIs in India?
- Yes, there are a few tax-free investment options for NRIs from abroad working in Amazon and other MAANG Companies available in India like NRE FD Account, FCNR FD Account, ELSS Funds, and Life Insurance.
How can NRIs invest in India?
- Here are the steps an NRI can follow to invest in India:
1. Open an NRE or NRO (Non-Resident Ordinary) bank account: NRIs need to open an NRE or NRO bank account with an Indian bank to invest in India. An NRE account is used for investing foreign earnings that can be repatriated, while an NRO account is used for investments made from earnings in India that cannot be repatriated.
2. Obtain a Permanent Account Number (PAN): NRIs need to obtain a PAN card to invest in India. This card is required for opening a bank account, investing in the stock market, and purchasing property in India.
3. Complete KYC norms: NRIs need to complete the KYC (Know Your Customer) norms by submitting the necessary documentation such as a copy of their passport, address proof, and PAN card.
4. Choose an investment option: NRIs can choose to invest in various options such as stocks, bonds, mutual funds, real estate, and more. NRIs can also invest in the Indian stock market through the Portfolio Investment Scheme (PIS).
5. Ensure compliance with regulations: NRIs must comply with all applicable regulations and laws when investing in India. However, it’s recommended that NRIs consult with a professional financial advisor or tax consultant to ensure compliance.
How can Amazon Employee NRIs invest in Indian Mutual Funds?
- An Amazon Employee NRI can invest in Indian Mutual Funds using his/her NRE/NRO Account. The NRE Account is used to invest on a repatriable basis and the NRO Account is used to invest on a non-repatriable basis.
Can I invest from US in India?
- Yes an NRI can invest from US in India in various asset classes such as FDs, Mutual Funds, Stocks, etc.
Can NRIs from the US invest in SIP in India?
- Yes, an NRI from US can invest in India through the SIP route. SIP stands for Systematic Investment Plan.
