NRI investment plans allow non-resident indians to grow wealth in India’s fast-expanding economy while managing tax obligations efficiently. By using designated NRE, NRO and FCNR accounts, overseas investors can invest capital across high-growth investment options, including mutual funds, real estate, ULIPs, etc. These options help balance long-term financial goals, currency stability and seamless repatriation, turning global earnings into strong returns.
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Lakshit Mahajan Business Unit Head - NRI Investment
Mr. Lakshit Mahajan is a Business Unit Head of Savings NRI at Policybazaar with 8 years of experience, having graduated from the International Management Institute, New Delhi. Lakshit has vast knowledge and understanding of insurance with his previous stints with Max Life and HDFC Life. He is adept at managing NRI customers from the GCC, USA, UK, UAE, Australia, Singapore, etc. looking to invest in India, providing invaluable advice to individuals and helping them meet their long term financial goals.
Reviewed By:Vivek Jain
Vivek JainChief Business Officer – Life Insurance, Policybazaar
Mr. Vivek Jain, Chief Business Officer – Life Insurance at Policybazaar, is a seasoned business leader with over a decade of experience across strategy, customer experience, and digital transformation in financial services. An alumnus of IIM Calcutta, he leads Policybazaar's life insurance business with a focus on helping Indian families build financial resilience through protection, long-term savings, and wealth creation. A strong advocate of goal-based financial planning and disciplined investing, his expertise spans ULIPs, guaranteed savings and child plans, retirement planning, NRI investments, and tax-efficient wealth creation. His perspectives have featured in The Economic Times, Mint, Financial Express, Zee Business, Gulf News, and Rediff.
NRI Investment Options in India
Below is the list of the best investments for NRIs that one can consider:
Mutual Funds
The mutual funds are investment options in which money from many investors is pooled together and invested in a mix of assets such as stocks, bonds or other securities. A professional fund manager manages these investments on behalf of the investors. The tax liability for mutual funds for NRIs are: TDS is deducted at the source, 20% for short-term equity gains and 12.5% on long-term equity gains which are above ₹1.25 lakhs annual threshold. If excess TDS is deducted, you can claim it back by filling indian return, using the DTAA. Click here to know more about DTAA.
Example: Rohan works in Dubai and runs a ₹50,000 monthly SIP in an equity fund from his NRE account. Over 10 years, he invests ₹60 lakh at an average 12% annual return, the corpus would roughly reach ₹1.16 crore. On redemption, the AMC will deduct 12.5% TDS as long-term gains before crediting the amount in his bank account, and the balance can be remitted to Dubai without any limit because the money originally came in through the NRE account.
Fixed Deposits
Fixed deposits allow investors to deposit a lump sum with a bank for a fixed period at a predetermined interest rate. The tenures for fixed deposits range from 7 days to 10 years. For NRIs, there are 3 types of deposits:
NRE FD: It holds foreign earnings converted into rupees. The interest is exempt from tax in India, and banks deduct no TDS. Both the principal and interest amount can be sent to abroad with any cap
NRO FD: This is for income earned inside India, such as rent, dividends, and pension. Interest is taxable with TDS deducted at over 30%, including surcharge and cess. Remittances are capped at USD 1 million per financial year.
FCNR FD: The deposits under this stay in the original currency, i.e. USD, GBP, EUR, AED, etc., for 1-5 years with tax-free interest and no rupee risk.
Example: Sameer in Sharjah puts ₹20 lakh into an NRE FD for 3 years, which is compounded quarterly at 3%. At maturity, he has about ₹24.6 lakhs; the ₹4.6 lakh interest attracts no indian tax, and nothing is withheld.
ULIPs
A Unit Linked Insurance Plan (ULIP) combines life insurance with investment. One part of the premium provides life coverage, and the remaining amount is invested in funds which are chosen by the policyholder. ULIPs are designed for long-term financial goals; they come with a 5-year lock-in period.
Example: Meera in Singapore pays ₹2 lakh a year for 10 years into a ULIP plan with ₹20 lakh life cover, investing a total of ₹20 lakhs. At about 10% a year after charge, the fund value at maturity will be close to ₹33 lakhs, and since her premium amount stayed under ₹2.5 lakhs, she has to pay no tax in India.
National Pension Scheme (NPS)
The National Pension System (NPS) is a retirement scheme that is run under PFRDA. In NPS, you contribute through your working years, and that money is spread across equity, corporate bonds and government securities, and it stays locked until 60.
NRIs aged between 18 to 70 can open a Tier 1 account. Contribution can be made through NRE or NRO account; the minimum contribution amount is ₹500. At 60 you can take out up to 60% as lumpsum which is tax-free; the other 40% is used to buy annuity, and that pension is taxable every year in India.
Child Plans
A child plan is a life insurance policy built around one goal: making sure a specific amount reaches your child at a specific age, whether or not you're around to fund it. Child Plans include a feature called “waiver of premium”, if something happens to the policyholder, the insurance company waives the future premiums, the policy still continues, and the child gets the maturity amount as specified in the policy.
ELSS & Stock Market (PIS Route)
Trading individual stocks means opening a Portfolio Investment Scheme (PIS) account tied to your NRE or NRO bank account, and FEMA only allows delivery-based trades, no day trading, no short-selling, full stop. There's also a ceiling most people don't know about: a single NRI can't hold more than 5% of a company's paid-up capital through the PIS route. If tax savings matter more than flexibility, ELSS funds lock your money for three years but hand you up to ₹1.5 Lakhs in deductions under Section 80C.
Bonds and Government Securities
Bonds and Government Securities (G-Secs) are low-risk fixed-income instruments issued by corporations or the Government of India to raise capital. As an NRI when you invest in this financial instrument, you lend money to these entities for a fixed time in exchange for regular, reliable interest payments and capital protection. These are one of the safest investment options available for investment because these have strong sovereign backing and strong corporate rating. The funds in these are parked in INR and give predictable returns that are even higher than regular bank fixed deposits.
Gold
Gold holds value when everything else gets shaky. Most NRIs skip physical gold now (locker fees, theft risk) in favor of Gold ETFs or digital gold bought online. One catch: the RBI won't let non-residents buy new Sovereign Gold Bonds. If you already owned some as a resident though, you keep them, plus the 2.5% annual interest on top of gold's price gains.
Real Estate
FEMA lets NRIs buy residential and commercial property in India without approval. Agricultural land, plantations and farmhouses are off limits, you can only inherit them. Payment must come through banking channels: inward remittance, or your NRE, NRO or FCNR balance. Indian banks lend to NRIs, and the EMI can be serviced from an NRE account or from the rent itself. Rental income is taxable in India, and the tenant is required to deduct TDS before paying you. Filing a return recovers the excess.
Portfolio Management Services
PMS is a personalised equity portfolio run by a SEBI-registered manager. The shares sit in your own demat account under your name, not in a pooled fund where you hold units. The entry point is ₹50 lakhs set by SEBI, and the balance for the same has to stay above that level. NRIs can invest through NRE or NRO accounts by opening a Portfolio Investment Scheme (PIS) account. You own these securities directly; every sale the fund managers make is taxable
Capital Guarantee & Guaranteed Return Plans
These are two related products often sold together.
A guaranteed return plan is a non-linked insurance policy where the maturity amount or income stream is written into the contract on day one. Nothing depends on market performance.
A capital guarantee plan combines a guaranteed component with a ULIP. The debt portion is sized to return your full invested capital at maturity; the equity portion depends on whatever returns the market delivers. Your original investment is returned in full, regardless of market performance, with any market-linked gains on top.
Shariah Compliant Funds
Shariah Funds are mutual funds that screens its portfolio against Islamic investment laws before anything else. They avoid companies and financial activities that are not permitted under Sharian principles, such as businesses involving alcohol, tobacco, gambling and other conventional interest-based financial services. Like other funds, Shariah mutual funds invest in market-linked securities. For example, Tata Ethical Fund, Nippon India ETF Nifty 50 Shariah BeES etc.
Global Investment Opportunities for NRIs Through GIFT City
GIFT City is basically an offshore financial hub sitting inside India's borders. Everything runs in foreign currency, so there's no conversion cost, and it operates outside SEBI or IRDAI's usual oversight. A single regulator, the IFSCA, runs the whole zone with lower taxes and a lot less bureaucracy.
Insurers like ICICI Prudential and Max Life now have branches here, so you can buy a ULIP directly in foreign currency without ever touching rupees. The money flows into global assets like US stocks, international ETFs and when the policy matures, the payout lands back in foreign currency with none of the usual repatriation paperwork.
GIFT City funds can also buy straight into the S&P 500, Nasdaq, and other global indices. And because the zone counts as offshore, none of this eats into your annual USD 2.5 lakh Liberalised Remittance Scheme limit.
There's also the currency risk problem that standard Indian life insurance carries. If the rupee drops, so does your policy's real value. GIFT City policies sidestep that by keeping premiums, claims, and maturity payouts all in foreign currency from start to finish.
And the tax setup here is genuinely better than the mainland: zero GST on financial services, no capital gains tax for non-residents on specified IFSC-listed securities, a discounted 10% rate on dividends, and no stamp duty or STT dragging down your costs.
NRI Tax Benefits in India
Under the default New Tax Regime, the basic exemption threshold is ₹3 Lakh (it remains ₹2.5 Lakh under the Old Tax Regime).
India taxes income based on your residential status under the Income Tax Act, not your passport. Foreign-earned income remains non-taxable in India for NRIs.
India only taxes earnings that accrue, arise, or are received within Indian borders, including local salary, property rent, interest, and capital gains from Indian assets.
Interest earned on Non-Resident External (NRE) and Foreign Currency Non-Resident (FCNR) accounts is 100% tax-free in India. Interest on Non-Resident Ordinary (NRO) accounts is fully taxable.
Selling listed equity shares or equity mutual funds within 12 months triggers a flat 20% STCG tax.
Holding listed equity or equity funds for over 12 months reduces the tax to 12.5% LTCG. The first ₹1.25 Lakh of long-term gains per financial year is completely tax-exempt.
Long-term gains on gold and real estate (held over 24 months) are taxed at 12.5% without indexation. For real estate purchased before July 23, 2024, investors can choose between 12.5% without indexation or 20% with indexation.
Tax Deducted at Source (TDS) is deducted upfront by buyers, banks, or brokers on rental income, dividends, and asset sales. If excess tax is deducted, you can claim a refund by filing an Income Tax Return (ITR).
DTAA treaties prevent the same Indian-sourced income from being fully taxed twice in both India and your country of overseas residence.
Filing an ITR is compulsory if your taxable Indian income exceeds the basic exemption limit (₹3 Lakh under the default New Tax Regime, or ₹2.5 Lakh under the Old Tax Regime) or if you are claiming a TDS refund.
Asset Allocation Strategy for NRIs
Asset Class
Primary Risk Level
Repatriation Freedom
Key Structural Benefit
Recommended Timeline
GIFT City USD Plans
Low to Moderate
100% Unrestricted
Complete USD currency shield; tax-free maturity
5 to 15 Years
NRI ULIPs
Moderate to High
Fully Repatriable via NRE
Tax-free fund rebalancing; Section 10(10D) exempt
5+ Years
National Pension Scheme (NPS)
Moderate
Repatriable via NRE funds
Government-backed retirement model with tax breaks
Till age 60
Listed REITs & Real Estate
Moderate
Repatriable based on account
High-grade commercial rental yields; fully liquid
3 to 7 Years
Capital Guarantee Plans
Zero Market Risk
Fully Repatriable via NRE
Principal fully safe; features integrated life cover
10 to 20 Years
NRE Fixed Deposits
Zero Risk
100% Freely Repatriable
100% Tax-exempt interest inside India
1 to 5 Years
Why Should NRIs Invest in India?
Here's why NRI investment in India makes sense right now:
India remains one of the fastest-growing major economies. Higher growth generally means better long-term return potential.
With the economy expanding, new investment opportunities keep emerging, many offering yields that outpace what's available outside.
Life insurance and retirement-focused plans come with tax advantages and steady payouts. This helps in comfortable retirement planning for NRIs back home.
NRE accounts make moving funds back to your country of residence simple, keeping that flexibility available whenever you need it.
FEMA and RBI regulations keep NRI investments in India well-governed, with clear rules on repatriation, taxation, and account usage. This regulatory backing gives NRIs and OCIs confidence that their money is protected.
NRE and FCNR(B) accounts offer tax-free interest, and both allow unrestricted repatriation of funds and interest. It's still worth checking with a financial advisor about tax rules in your country of residence, since those vary.
Several NRI investment plans , including NRE deposits, ULIPs, and NPS, come with meaningful tax exemptions on both interest and maturity proceeds.
Eligibility Criteria to Start NRI Investments in India
To start NRI investment in India, you need to meet the following:
NRI Status: Classified as an NRI under FEMA guidelines, with valid proof of overseas residence.
Age: At least 18 years old to invest through NRI investment options in India.
Legal Capacity: Eligible to sign financial contracts in your country of residence.
Bank & PIS Accounts: An active NRE or NRO account for transactions, plus a PIS account if you plan to trade in the stock market.
Compliance: All investments must follow FEMA and SEBI regulations throughout.
Important Tips for NRIs Investing in India in 2026
Know why you're investing before you pick anything like, retirement, savings, future income, whatever it is. Get an NRE or NRO account sorted first. Remember that NRE money (plus returns) comes back abroad in full, while NRO money caps at USD 1 million a year (April to March). When comparing investment plans for NRI in India, lean toward tax-free options where they make sense, and keep an eye on RBI and FEMA rule changes, because they do shift.
Documents Required for NRIs to Invest in India in 2026
To invest in India (stocks, mutual funds, real estate, or fixed deposits), Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and Persons of Indian Origin (PIOs) must provide the following documents under the Foreign Exchange Management Act (FEMA) and SEBI guidelines:
Identity Proof
Valid Passport (Mandatory): Copy of the first page, last page, and pages showing name, date of birth, photo, issue/expiry dates, and signature.
OCI / PIO Card: Required for foreign passport holders of Indian origin to establish NRI status.
Proof of NRI Status
Visa / Work Permit: Valid employment visa, residence permit, work permit, or student visa.
Seafarer Contract / CDC: Continuous Discharge Certificate and active contract letter (for mariners).
Tax Identification Proof
PAN Card (Mandatory): Required for all financial transactions, demat accounts, and tax deductions in India.
Foreign Tax Identification Number (TIN / SSN / TFN): Proof of tax identification in your country of residence (or Social Security Number / National Insurance Number).
Overseas & Indian Address Proof
Overseas Address Proof: Utility bills (electricity, water, gas, phone), foreign bank statements, or driving license issued abroad (must not be older than 3 months).
Indian Address Proof (Optional/If applicable): Aadhaar card, Indian driving license, or Indian passport copy showing your permanent home address.
Bank Account Details & Proof of Funds
NRE / NRO Bank Account Details: Cancelled cheque leaf displaying your name and account type, or a bank account statement (under 3 months old).
NRE Account: Used for investing funds earned outside India (fully repatriable).
NRO Account: Used for investing income earned within India, like rent or dividends (partially repatriable).
Regulatory & Compliance Declarations
FATCA / CRS Self-Declaration: Mandatory form detailing tax residency, country of birth, and foreign citizenship (compulsory for US, Canada, UK, EU, and Middle East residents).
CKYC / KRA Form: Central Know Your Customer form, along with a recent passport-sized photograph.
In-Person Verification (IPV) / Video KYC: Completed via online video call or in-person verification at an Indian consulate, embassy, or designated broker/bank branch.
Additional Documents (Specific Investment Types)
For Stock Market (Direct Equity): PIS (Portfolio Investment Scheme) approval letter from your designated NRE bank (if trading through the PIS route).
For Power of Attorney (PoA) Investments: PoA agreement document signed by both the NRI and the local Indian resident representative, along with the representative's KYC documents.
For US/Canada Residents: Additional AMC-specific self-declarations for compliance with local SEC/FATCA regulations.
Why Choose Policybazaar for NRI Investment Plans in India?
Policybazaar has built a track record where over 9 lakh customers have put close to ₹12,400 crore through the platform, which says something. There are no hidden charges; costs and benefits are laid out upfront. Dedicated NRI advisors help match you to the right product instead of just pushing whatever pays the highest commission. The platform is IRDAI-compliant, calls get recorded for transparency, and support runs end-to-end.
In Conclusion
NRI investment plans in India try to strike a balance between safety and growth, giving NRIs a real path to building long-term wealth. There's no universal best investment plan in India for NRI, the investment options for NRI in India today cover just about every risk profile and timeline. Pick carefully, and your financial goals will stop feeling far!
FAQs
Can NRIs invest in India?
Yes, across a range of options depending on individual goals.
Yes, residential and commercial, but not agricultural land or farmhouses.
Which is the best investment plan for NRI or OCI in India?
Depends entirely on personal retirement goals and risk tolerance.
Can NRIs and OCIs invest in PPF in India?
No new accounts can be opened, but existing ones can still be maintained.
Can NRIs open a Demat account in India?
Yes.
What are the benefits of NRIs investing in India?
Growth potential, diversification, and access to regulated products.
Do currency rates affect NRI investments in India?
Yes. A weaker rupee cuts into foreign-currency returns.
Can NRIs buy property in India?
Yes, both residential and commercial.
What are the types of NRI investment options in India?
Mutual funds, stocks, real estate, NPS, fixed deposits, and bonds.
Can NRIs invest in government bonds or RBI bonds?
Yes.
Can an NRI invest in India without a PAN card?
No. A PAN is required for nearly every financial transaction, mutual fund allocation, and insurance purchase in India.
Is the maturity amount from an NRI investment plan fully taxable?
Depends on the asset. NRE Fixed Deposits and ULIPs (under the ₹2.5 Lakh annual premium cap) come out tax-free. Equity mutual funds and NRO investments face capital gains tax and TDS.
Can US and Canadian NRIs invest freely in Indian mutual funds?
Not entirely. FATCA disclosure rules mean only a handful of Indian mutual fund houses accept US- or Canada-based NRIs. Life insurance and capital guarantee plans, though, remain fully open to them.
How is NRI status actually defined for tax and investment purposes?
You qualify as an NRI if you spend fewer than 182 days in India in a financial year, or fewer than 60 days in that year while also spending less than 365 days in India across the preceding four years.
Can NRIs invest in AIFs or PMS in India?
Yes. AIFs typically require a minimum commitment of ₹1 crore, while PMS accounts usually start around ₹50 lakh — both need to be funded through NRE, NRO, or FCNR accounts.
What is the best investment plan in India for NRI?
There isn't one single answer. The best investment plan in India for NRI depends on your goals. GIFT City plans and ULIPs suit long-term growth, NRE FDs suit zero-risk parking of funds, and NPS suits retirement planning.
What are some good investment plans for NRI in India right now?
Among the strongest investment plans for NRI in India in 2026 are GIFT City USD portfolios, ULIPs, NPS, REITs, and NRE Fixed Deposits. Each suited to a different risk level and timeline, as shown in the allocation matrix above.;
FCNR deposits are a suitable option for NRIs seeking to protect and grow their foreign currency savings. Interest
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˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in *Past 10 Year annualised returns as on 01-09-2026 *All savings plans are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs. **Returns are based on past 10 years' fund performance data (Fund Data Source: Value Research).
^Returns as on 10th Jan'25. 18% returns for Tata AIA Life Top 200 for the last 10 years.The past performance is not necessarily indicative of future performance. Source: Morningstar
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