NRI Investment Plans in India

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Written by PolicyBazaar  -  

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Updated date : 25 November 2019

There are a number of investment plans available for Non-Resident Indians (NRIs) in this country. Financial planning for NRIs is more or less similar to that of resident Indians albeit with some points of difference. Knowing about these can lead to making a right choice, and money well invested back home for those who are not living here, presently. Those who want to make the most of money invested in the country need to find appropriate financial advisors for managing it and helping it to grow. There has been a spurt in the NRI investment in recent times owing to the global economic downturns. Indians working abroad are suddenly feeling insecure about their jobs and investment options available on foreign shores. 

In this scenario, an ideal option is to go for selection of an ideal investment plan that provides a complete financial security and big returns. Some of the plans ideal for NRI include secondary market equity shares, public new issues or shares, mutual fund through inward remittance or via CNR/NRE/NRO accounts, bank deposits, and NRO domestic funds, through partnership concerns and bonds, as well as immovable property. Simply taking decisions regarding investment in India is not enough. One needs to find that perfect investment option for getting the maximum possible returns. The points to consider include investment point, account for investment, amount for investment, and related applicable taxes.

Here are some of the NRI investment options in India to choose.

Direct Equity:

Equity markets are an ideal place for investment in an NRI situation. The thing to get into account is the investment time horizon, return, and risk expected along with long-term goals. One of the benefits of investing in direct equities is that there are no limits set concerning NRI investment.

Mutual Fund Investment:

When compared to direct equity, mutual fund is a far safer bet. This is especially true for a foreign investor having a limited expertise. When investing in mutual funds, it is necessary to determine whether they are open for NRIs based in Canada or USA. Checking of rules for house parties is another important criterion. The flip side, the investment which is expected to grow, remains locked for a few days, before reaching back to investors, without any growth prospects in sight.

 Investment in Real Estate:

Those who are interested can also consider real estate investments, since it can lead to big returns for an NRI. This is clearly a favorite option, as it includes benefits not have a level normally. Even when a person is residing abroad, it is possible to let out an apartment, home, or commercial property for rent purposes and get an additional income source by every standard. In order to make it easy for the foreign residents, there are a number of home loan options available that one can utilize in order to secure a property, which is bound to provide big returns in the future.

It is wrong to consider that there are no investment plans present for NRI; however, it is necessary to have an understanding of the same to make the most of such investment options in India.