HDFC NRI Investment Plans

Why Should NRI Invest in HDFC Bank? 

The RBI regulates NRI investments in India, requiring strict compliance with statutory regulations and reporting. HDFC Bank has been among the premier private sector banks in India operating since 1994. The bank provides a customized environment suiting your NRI status.

The first step is to evaluate NRI investment opportunities in India. You must open an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account with HDFC Bank. You are ensured banking ease to redirect your NRI funds to the identified investment opportunity. For example, your investment in the capital market must be routed through the RBI-sponsored Portfolio Investment Scheme (PIS). 

HDFC NRI Investment Through PIS

NRI equity investment in India is governed by Schedule 3 of the FEMA 2000 mandating NRI share trading operations through the Portfolio Investment Scheme. It enables you to purchase/ sell Indian company shares and convertible debentures through registered stock exchanges and stockbrokers. HDFC Bank is a foreign exchange authorized dealer to provide a PIS-enabled NRE account. The PIS service is extended through designated branches of AD banks only as per RBI guidelines. 

What is an HDFC PIS-Enabled NRE Account?

An NRE and NRO account are both savings bank accounts exclusively for NRI customers. The NRE account hosts your funds earned abroad as an NRI, while the NRO account holds your earnings within India. Accordingly, you can repatriate NRE funds freely, while you must pay appropriate taxes on NRO funds before repatriating. The same principle applies to the PIS. 

RBI has stipulated share trading transaction reports and other statutory regulations compliance only for PIS-enabled NRE account for its repatriation facility.  

What are the Features of PIS-Enabled NRI Account?

The following is only an indicative list of the facilities available to you as an investor choosing HDFC investment plans for NRI through the PIS:

• Invest in shares and bonds listed in the stock exchange

• Your investment is ranked for repatriation or non-repatriation, depending on the source account - NRE or NRO based on RBI regulations

• You must allocate only one designated bank for channelling transactions under the PIS 

How to Open HDFC 3-in-1 Investment Account?

You have seen that you need a PIS-enabled NRE account to channel your investments in India. How about exploring the HDFC 3-in-1 Investment account tailored for your NRI investments?  It combines a Demat and a Trading account, enabling you to embark on your journey into the Indian capital market. 

Check what you get:

• Your convenience is organized through multiple trading platforms.

• A few clicks lead you to recommended IPO investments.

• Hassle-free statutory compliance and reporting of your share trading transactions to the RBI on your behalf.

• Sell and purchase stock even after the market hours.

• Seamless trading in Futures and Options derivatives.

• Get the benefit of expert guidance to make informed choices.

What are the Documents Required for HDFC PIS-Enabled Account?

The pre-requisite for NRI investment is obtaining PIS permission. Apply to your NRI account holding HDFC Branch with the following documents:

• PIS account opening form

• RPI form duly filled and signed

• PIS application form

• PIS tariff sheet

• Demat holding statement

HDFC Investment Plans for NRI

Now that you are fully equipped with the HDFC 3-in-1 Securities account with the RBI devised PIS permission, you are on track to identify investment windows. Next, you must align the investments with your risk profile and skills to navigate in various scenarios focused on returns.  

The following investment options are worth exploring:

1. Direct Equity

   Equity investment offers the best capital appreciation opportunities if your NRI status has not diluted your high-risk profile. As per the PIS guidelines, you must only route all your transactions through the registered stock exchanges, secondary markets, and registered brokers. 

2. Mutual Funds

   If you are not confident of your stock picking skills but have a thirst for high returns, Mutual Funds are tailor-made for you. The professionally managed fund houses nurse a mixed portfolio of stocks to ensure sustained returns. In addition, the ability of Mutual Funds to explore more complicated financial markets makes it a popular instrument for NRI investments. 

3. Government Securities

   If you are an NRI boasting of a low-risk appetite, investment in Government Securities aligns with it. The debt instrument assures returns in the long or short term, depending on its tenor. Moreover, it is a safe investment window repaid on maturity. 

4. Initial Public Offering (IPO)

   A private company or a corporation goes public by selling a part of its stake to increase equity capital through the IPO process. Therefore, it has the potential for quick returns on investment provided the choice is informed. HDFC Securities provides the necessary inputs based on their unbiased research to guide you to a rewarding investment. 

5. Convertible Bonds  

   Prudent investment in selected convertible bonds is an excellent way to own company stocks after the maturity period. These are comparatively safe investment windows for your NRI funds that guarantee returns till maturity. The value is then converted into stocks at a discounted market price. 

6. Offshore Investments 

   An NRI is a global investor for HDFC Bank providing multiple investment options aligned to individual needs. Choose wisely between Mutual Funds, Offshore Bonds, Life Settlement Funds, and Structured Products, to name a few. Furthermore, the instruments are in various currencies across different countries. 

   The advantage with HDFC Bank is their global partnership with best-in-class platform providers or Asset Management Companies like the All Funds International operating globally.  Thus, you get access to Equity, Fixed Income Bonds, and Commodities through their Bahrain Branch.

In Conclusion

HDFC Bank rolls out the red carpet for meeting NRI investment needs. An extremely convenient banking ecosystem makes exploring NRI invest in HDFC Bank a rewarding experience.  

Being an Authorized Dealer in Foreign Exchange, HDFC Bank combines a rich legacy and global partnerships to provide you with the right investment windows. It helps your money grow regardless of where you operate in deference to your global investor status.

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