NRI investment plans allow non-resident indians to grow wealth in India’s fast-expanding economy while managing tax obligations efficiently. As of FY 2025-26, India recorded $94.53 billion in gross FDI, with global remittance inflows reaching an all-time high of $110.47 billion. By using designated NRE, NRO and FCNR accounts, overseas investors can invest capital across high-growth investment options, including mutual funds, ULIP plans and in India’s $438 billion residential real estate sector, etc. These options help balance long-term financial goals, currency stability and seamless repatriation, turning global earnings into strong returns.
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Written By:Lakshit MahajanLast Modified 29th September 2026
Lakshit MahajanBusiness 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.
Directly from Experts
Over my years working with global NRIs, one priority stands out above all else: building wealth back home without leaving their family's financial security to chance across borders.
The numbers speak for themselves: over 3,550 claims have been processed totaling ₹396 Crore in settled claims, with families receiving an average claim benefit of ₹53.3 Lakhs.
What makes these investment plans reliable is the Waiver of Premium (WOP) benefit. In any unforeseen event, all future premiums are waived while the policy remains fully active, ensuring the full targeted sum is secured for your loved ones. What I tell every NRI investor: a true investment strategy must protect while it grows. Selecting an NRI plan with Waiver of Premium guarantees that your family's future in India stays on track, no matter what uncertainties arise.
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Lakshit Mahajan
Business Head - NRI Investment
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.
Why Should NRIs Invest in Mutual Funds?
Allows NRIs to invest in Indian companies and debt instruments while living abroad.
NRIs can start with either lump sum investments or through systematic investment plans (SIPs).
NRIs can build a corpus for their retirement, property purchase or family expenses in India.
Fixed Deposits
NRI Fixed deposits allows overseas Indian 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 eligible overseas 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 without 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.
Why Should NRIs Invest in Fixed Deposits?
NRIs earn interest at a rate which is agreed upon when booking the deposit, subject to its terms.
NRIs can save for planned expenses in India, including education, property or family commitments.
It is easy for NRIs to manage eligible deposits through Indian bank accounts while living abroad.
NRIs can choose a deposit duration that matches their cash flow.
ULIP Plan
A Unit Linked Insurance Plan (ULIP) combines life insurance with investment. One part of the premium provides life coverage in a ULIP plan, 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 which can help NRIs to plan for goals such as retirement, children’s education or wealth creation in India.
Why Should NRIs Invest in a ULIP Plan?
India continues to be one of the world’s fastest growing economies, which offers NRIs the opportunity to participate in its long term economic growth through market linked investments.
NRIs can choose from various funds like equity, debt and balanced funds based on their financial goals and risk appetite.
ULIP premiums qualify for deductions of up to ₹1.5 lakh under Section 123 of the Income Tax Act, 2025 subject to certain conditions and the tax regime chosen. Eligible maturity proceeds will be exempt under Schedule II. Death benefits are exempt, under Section 10(10D) of the Income Tax.
ULIP plans can help NRIs build a fund in Indian rupees for their future expenses 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 a lump sum which is tax-free; the other 40% is used to buy annuity, and that pension is taxable every year in India.
Why Should NRIs Invest in National Pension Scheme/System (NPS)?
NRIs can contribute to an eligible NPS Tier I account while living abroad and can build a corpus for their retirement.
NPS can choose from equity, corporate bonds and government securities based on your risk appetite.
NRIs can use the accumulated corpus for lump sum withdrawals and annuity purchases, subject to NPS rules.
Contributions and withdrawals qualify for tax benefits under applicable Indian tax rules.
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.
Why Should NRIs Invest in Child Plans?
NRIs can build a dedicated fund for their children's school fees, higher education or overseas studies.
Child education plans come with a waiver-of-premium benefit that can continue under the policy terms if the insured parent dies.
Policy terms can be aligned with important milestones for NRIs, such as college admission or postgraduate education.
NRIs can plan financially for children who live in India even when the parent earns overseas.
Eligible premiums and policy proceeds qualify for tax benefits under applicable Indian provisions, subject to policy conditions and statutory requirements.
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 NRIs 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.
Why Should NRIs Invest in ELSS & Stock Market?
NRIs can invest in eligible Indian companies and equity-oriented funds while earning overseas.
Eligible ELSS investments may qualify for deductions under Section 123 of the Income-tax Act, 2025, corresponding to Section 80C of the 1961 Act, subject to eligibility and the applicable tax regime.
ELSS funds have a three-year lock-in for each investment, which may encourage NRIs to invest for a longer investment horizon.
NRIs can choose between eligible individual shares, ETFs and equity funds based on their investment knowledge, goals and risk appetite.
NRIs can invest through eligible demat, trading and banking arrangements in accordance with applicable FEMA and securities-market rules.
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.
Why Should NRIs Invest in Bonds and Government Securities?
Certain bonds provide periodic interest payments, helping NRIs plan cash flows for future expenses in India.
Government of India securities provide exposure to sovereign debt, with repayment obligations backed by the government, subject to the instrument's terms.
Different securities have different maturity dates, allowing NRI investors to select options that match their financial goals.
NRIs can explore government securities, treasury bills, PSU bonds and corporate bonds, subject to applicable rules and availability.
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.
Why Should NRIs Invest in Gold?
NRIs can include gold along with other investments to diversify their investment portfolio.
Gold can help NRIs preserve purchasing power during certain economic conditions and can act as a hedge against inflation.
NRIs can explore gold ETFs and physical gold, depending on their investment preferences and applicable regulations.
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.
Why Should NRIs Invest in Real Estate?
NRIs can purchase eligible residential and commercial properties while living overseas, subject to applicable FEMA rules.
Property can generate rental income to support expenses in India, although vacancy and maintenance costs may affect returns.
Property ownership can provide a home for retirement, family visits or a possible relocation.
NRIs can explore home loans from Indian banks and housing finance companies, subject to their lending criteria.
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
Why Should NRIs Invest in PMS?
PMS providers can manage portfolios according to an NRI's investment objectives, risk tolerance and financial circumstances.
SEBI-registered portfolio managers make investment decisions according to the agreed investment mandate.
Investors can explore strategies focused on growth, value or other investment approaches, depending on the provider's offerings.
PMS providers offer reporting arrangements that help clients monitor holdings and performance while living abroad.
A professionally managed equity portfolio may help NRIs pursue wealth creation in Indian markets, although losses are possible and returns are not guaranteed.
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.
Why Should NRIs Invest in Capital Guarantee & Guaranteed Return Plans?
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.
Capital guarantee products can help NRIs plan for expenses such as children's education, retirement or future commitments in India.
Certain capital guarantee products offer a defined capital-protection benefit at maturity, subject to the specific policy terms.
Policies qualify for tax exemptions or other benefits under applicable Indian tax provisions, subject to the prescribed conditions.
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.
Why Should NRIs Invest in Shariah Compliant Funds?
NRIs can invest in screened Indian securities through suitable Shariah-compliant mutual funds or ETFs.
Mutual funds apply a defined investment strategy and screening methodology to select eligible securities.
These funds can help NRIs pursue long-term investment goals while following their preferred investment principles, although returns are not guaranteed.
NRIs can compare eligible Shariah-compliant funds and ETFs based on their investment objectives, portfolio composition and costs.
Equity Instruments
NRIs can participate in India’s growth story by investing directly in listed stocks, exchange-traded funds (ETFs), and equity mutual funds. Direct equity trading requires setting up an NRI demat and trading account via the Portfolio Investment Scheme (PIS) path for repatriable investment, or using a standard NRO account for non-repatriable investments.
NRIs are also allowed to subscribe to Initial Public Offerings (IPOs) using funds from their NRE or NRO account without needing a PIS approval. All stock market trading by NRIs on Indian exchanges is strictly based under the Foreign Exchange Management Act (FEMA).
You can link either an NRE or NRO account to your NRI Demat account based on your repatriation needs. Note that separate NRO (PIS) accounts are no longer required for non-repatriable investments, as trades can be executed directly through a standard designated NRO account.
Why Should NRIs Invest in Equity Instruments?
Indian stocks and ETFs allow NRIs to participate in the performance of listed Indian businesses.
NRIs can select individual shares, ETFs and eligible equity mutual funds according to their investment goals and risk appetite.
Equity investments may generate capital gains over time, although market fluctuations can also lead to losses.
NRIs can apply for qualifying initial public offerings through permitted channels, subject to the issue's terms and applicable regulations.
NRIs can adjust their exposure across eligible sectors, companies and equity-related instruments.
Fractional Ownership of CRE
Fractional ownership of commercial real estate (CRE) allows multiple investors to invest in commercial property such as office buildings, retail space or warehouse, by contributing a portion of the required capital. NRIs can explore opportunities in Indian commercial real estate through allowed investment routes, as per FEMA requirements and the investing structure . Returns may come from rental income and property appreciation but the returns are not guaranteed.
Why Should NRIs Invest in Fractional Ownership of CRE?
NRI investors can participate in property investments with a smaller contribution than would be required for direct ownership.
Rental income from leased commercial properties provide a potential income stream, subject to occupancy, expenses and the investment structure.
Fractional ownership can help NRIs diversify their portfolios beyond traditional investments such as mutual funds, shares and fixed deposits.
NRIs should check the ownership structure, exit options, fees and regulatory status of the platform, particularly whether the investment is offered through a SEBI-regulated SM REIT
INVITs
Infrastructure Investment Trusts (InvITs) are investment products that allows investors to invest in infrastructure assets such as roads, power transmission lines and other infrastructure projects. InvITs are regulated by the Securities and Exchange Board of India (SEBI).
Why Should NRIs Invest in InvITs?
NRIs can invest in India's infrastructure sector without directly purchasing or managing physical infrastructure assets.
InvITs provide exposure to infrastructure projects such as highways, energy transmission networks and other eligible assets.
NRIs may receive periodic income distributions from the trust, depending on its cash flows and applicable requirements.
Listed InvIT units can be bought and sold on stock exchanges, subject to market liquidity and trading conditions.
InvITs can help NRIs diversify their portfolios beyond traditional equity, debt and property investments.
NRIs can compare eligible InvITs based on their underlying assets, distribution history, fees, debt levels and risk factors before investing.
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 Life 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.
DID YOU KNOW?
Money in your NRE and FCNR accounts can go back abroad in full, principal and interest, with no upper limit. An NRO account works differently. You can remit up to USD 1 million per financial year (April to March) from it, after tax. (Source:RBI — Accounts in India by Non-residents)
You can move money from your NRO account into your NRE account, but it counts against the same USD 1 million yearly limit. Once the transfer is done, the money becomes freely repatriable. (Source:RBI — Accounts in India by Non-residents)
Since December 2025, NRIs in NPS can take up to 80% of their corpus as a lump sum at exit, with just 20% going into an annuity. It used to be 60:40. One catch: only 60% of the lump sum is currently tax-free, so the extra 20% is taxable unless the rules change. (Source:NPS Trust (PFRDA))
Since 22 September 2025, there's no GST on individual life insurance premiums. That covers term plans, ULIPs and endowment policies alike. Group policies still carry 18% GST. (Source:Department of Financial Services, Ministry of Finance)
A ULIP's maturity payout is tax-free only if your total annual premium across all ULIPs bought on or after 1 February 2021 stays within ₹2.5 lakh. Go above that, and from 1 April 2026 the gains are taxed as capital gains, the same way as equity mutual funds. (Source:Income Tax Department — Capital Gains)
If tax deducted on your Indian income is higher than the rate in your country's tax treaty with India, you can claim the difference back by filing an Indian return. You'll usually need a Tax Residency Certificate and Form 10F to do it. (Source:Income Tax Department — DTAA)
The new tax regime's basic exemption went up to ₹4 lakh from FY 2025-26. But the rebate that makes income up to ₹12 lakh tax-free is available only to residents. As an NRI, you pay tax on Indian income above ₹4 lakh even if your total stays under ₹12 lakh. (Source: Income Tax Department)
NRI Investment Plan Buying Checklist
Investment Goal: Select a plan that matches your financial goals in India or abroad
Investment Tenure: Select investment duration based on your global life goals and stay plans
Fees & Charges: Check charges involved, including any applicable currency conversion or transaction charges
Liquidity: Know withdrawal rules, lock-in periods, NRE/NRO account rules, and fund repatriability
Tax Benefits: Check Indian tax-free maturity benefits alongside DTAA terms in your resident country
Flexibility: Go for options that allow you to adjust your investment as your needs change
Provider Reliability: Check the provider's track record, regulatory status, NRI servicing capabilities, and overall credibility
NRI Tax Benefits in India
Residential Status
Taxation Basis: India taxes income strictly based on your residential status determined under the Income Tax Act, not by passport or citizenship.
Foreign Income Exemption: Income earned outside India remains completely non-taxable in India for NRIs.
Taxable Income for NRIs
Sourced Income: India only taxes income that accrues, arises, or is received within Indian borders. This includes local salary, house property rent, interest on Indian bank accounts, and capital gains from Indian assets.
Exemption Limits: Under the default New Tax Regime, the basic exemption threshold is ₹3 Lakh (and ₹2.5 Lakh under the Old Tax Regime).
ITR Filing Mandate: Filing an Income Tax Return (ITR) is compulsory if taxable Indian income exceeds the basic exemption limit (₹3 Lakh in New Regime / ₹2.5 Lakh in Old Regime) or if you are claiming a Tax Deducted at Source (TDS) refund.
Tax Deducted at Source (TDS): TDS is deducted upfront by buyers, banks, or brokers on rental income, dividends, and asset sales. If excess tax is withheld, it can be claimed back by filing an ITR.
Tax on Investments
Asset / Account Type
Tax Rates & Rules
NRE & FCNR Accounts
100% tax-free interest earned in India.
NRO Accounts
Interest is fully taxable at applicable slab rates.
Listed Equities & Mutual Funds (STCG)
Flat 20% tax on holdings sold within 12 months.
Listed Equities & Mutual Funds (LTCG)
12.5% tax on holdings held over 12 months (first ₹1.25 Lakh of gains per FY is exempt).
Real Estate & Gold (LTCG)
12.5% tax without indexation (held over 24 months). Note: For real estate bought before July 23, 2024, investors can opt for 20% with indexation or 12.5% without indexation.
Maturity Benefit
Life Insurance & ULIPs: Maturity payouts along with bonuses are fully tax-exempt under Section 10(10D) if:
Annual ULIP premiums do not exceed ₹2.5 Lakh across all policies issued on or after Feb 1, 2021.
Annual non-linked insurance premiums do not exceed ₹5 Lakh for policies issued on or after April 1, 2023.
Annual premium stays within 10% of the sum assured.
Taxable Payouts: If premiums exceed these statutory limits, maturity proceeds are taxed as capital gains based on underlying asset allocations.
Death Benefit
Complete Tax Immunity: The death benefit sum paid to a nominee or beneficiary under a life insurance policy or ULIP is 100% tax-free in India under Section 10(10D).
No Caps: Death benefit payouts remain entirely tax-exempt regardless of the annual premium amount, total policy value, or whether the policy exceeds standard investment thresholds.
Double Taxation Avoidance Agreement (DTAA)
Tax Relief: DTAA treaties signed between India and foreign countries prevent Indian-sourced income from being taxed twice.
Credit Mechanism: NRIs can utilize DTAA provisions to claim a credit for taxes paid or withheld in India (TDS) against tax liabilities in their country of residence.
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.
How Can NRIs and OCIs Invest in India?
If you are planning to invest in India as an NRI or OCI, you need to follow a structured process governed by RBI and FEMA.
Obtain Your PAN (Permanent Account Number)
A PAN is a legal document required for performing any financial transaction in India.
NRIs with an Indian passport can apply for a PAN card with Form 49A. OCIs and foreign passport holders can apply with Form 49AA.
It is important to keep the PAN details and residential status updated on the Income Tax portal. An inactive PAN can lead to higher TDS.
Open an NRE or NRO Bank Account
NRE (Non-Resident External) Account: You can put your foreign income earned in foreign currency. Both principal and interest earned are fully repatriable, and the interest earned is tax-free in India.
NRO (Non-Resident Ordinary) Account: This account is for managing Indian-sourced income like rents, dividends, pensions, or domestic assets. Interest is taxable subject to TDS. Repatriation is capped at USD 1 million per financial year.
Switch Your Account: If you have a regular resident savings account, ask your bank to switch it to an NRO account once you become an NRI.
Complete Your KYC (Know Your Customer)
CKYC (Central KYC) Registration: Complete your one-time CKYC compliance through a bank, or mutual fund AMC, or SEBI-registered intermediary to generate a 14-digit CKYC registration number.
Documents: Keep your documents like passport, visa, PAN, foreign address proof, photograph, etc. ready. For OCIs, the OCI card is also compulsory.
Declarations: Self-declarations under the Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) are mandatory
Verification: Video in-person verification is or KYC needs to be completed.
Choose Investment Plan
Plan your Goal: whether it is for retirement, child education, or building a house, your goal should be clear before making any investment.
Match Account to Product: Opt for an NRE account for repatriable investments. NRO account should be chosen if there are Indian-sourced funds. For stock trading, a PIS account is required
Check Lock-ins: In ULIPS, there is a 5-year lock-in; ELSS is a 3-year lock-in, and if opting for NPS, it is till 60 years of age. Choose an investment option as per your suitability and requirements.
Ensure Compliance with Regulations
Follow FEMA Guidelines: Adhere to the investment restrictions and guidelines. All inward remittances should originate from legitimate banking channels. No agricultural land purchases are allowed.
Tax Filing: File ITR to claim TDS refunds in India. Use DTAA with Tax Residency Certificate along with Form 10F.
Status Update: If shifting anywhere or moving back to India, it is important to update your bank account details.
Eligibility Criteria to Start NRI Investments in India
To start NRI investment in India, you need to meet the following:
Factor
Details
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
Define Clear Goals First: Identify the specific purpose of your investment such as retirement planning, wealth accumulation, or future cash flow, before selecting an asset class.
Set Up the Right Bank Account: Open and activate your designated non-resident accounts (NRE or NRO) prior to initiating any investments in India.
Understand Repatriation Limits: Keep in mind that funds and returns in an NRE account are 100% freely repatriable, whereas funds in an NRO account are capped at USD 1 million per financial year (April to March).
Prioritize Tax Efficiency: Evaluate NRI investment plans carefully and lean toward tax-exempt or tax-friendly options (such as NRE FDs or qualifying ULIPs) where aligned with your risk profile.
Track Regulatory Changes: Stay updated on evolving RBI and FEMA regulations, as guidelines governing overseas investments, taxation, and repatriation shift over time.
Common Mistakes NRIs Make While Investing
Some common mistaktes include using wrong account, mixing of funds, overlooking FEMA rules, etc. Lets take a look:
Using a Resident Status Account:
As per the FEMA rules, it is mandatory to surrender your resident account
NRIs should convert their account in NRO status and open a designated NRE account for foreign income
Lack of Account Understanding:
Every account comes with different rules and regulations on fund sources and repatriation
Open NRE account for foreign income and NRO account for depositing income earned in India by NRIs
Not Diversifying Portfolio:
The more your investments are in a single asset class, the greater your financial risks will be in the future.
It is important to have a diversified portfolio across equity, real estate, fixed deposit, market, etc. to overcome risk and financial stability.
Overlooking FEMA Rules and Repatriability Limits:
Agricultural purchases, short selling and intraday trading are not allowed for NRIs under FEMA rules
NRO funds are capped at USD 1 million per year
DTAA benefits can be claimed upon filing the ITR
Outdated Personal Information
All the important documents should be updated regularly
KYC and PAN should have your latest details to avoid triggering higher TDS
Bank accounts, demat account, and insurance policies should have nominees along with updated details to avoid legal challenges
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) must provide the following documents under the Foreign Exchange Management Act (FEMA) and SEBI guidelines:
Identity Proof: Valid passport copy (mandatory) and OCI card for foreign passport holders.
Proof of NRI Status: Valid visa/work permit or seafarer contract/CDC.
Tax Identification Proof: PAN card (mandatory) and foreign TIN/SSN/TFN from your residence country.
Address Proof: Foreign address proof (under 3 months old) and optional Indian address proof.
Bank Account Details: Cancelled cheque or bank statement for NRE (repatriable) or NRO (partially repatriable) accounts.
Regulatory Declarations: Mandatory FATCA/CRS declaration, CKYC form with photo, and Video KYC/IPV.
Additional Documents: PIS approval letter for direct equity, PoA agreement for managed accounts, and AMC self-declarations for US/Canada residents.
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.;
The State Bank of India (SBI) NRE Account is a secure and convenient banking solution designed for Non-Resident
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Nri Articles Insurance Reviews & Ratings
4.7 / 5
(Based on 35 Reviews)
(Showing Newest 10 reviews)
Nishant
New Zealand, November 05, 2026
★★★★★
Overall Service Experience
Good experience with pb. Process was little slow but i am happy with my plan
Devang
Australia, November 05, 2026
★★★★★
Support for First-Time NRI Investor
This was my first time buying investment plan from abroad and policybazaar helped me. Good policy they gave me
Ayesha
Canada, November 02, 2026
★★★★★
Reviewing Policy Terms
Kotak einvest plus is what i picked after almost a week of comparing plans policybazaars comparison tool actually helped a lot saved me time no regrets so far
Tarun
UK, November 02, 2026
★★★★★
NRI Investment Enquiry
Policybazaar is a good place to compare different plans.
Kunal
USA, November 02, 2026
★★★★★
Good Communication
I got clear answers to my doubts. It was helpful to get guidance without visiting India. kudos
Prateek
Chennai, November 02, 2026
★★★★★
Savings While Working Abroad
I wanted to keep investing in India while working overseas. The online assistance was useful and helped me understand the process.
Akash
Russia, October 28, 2026
★★★★★
Understanding Risk and Returns
I wanted to understand the risks as well as the potential returns before investing. Policybazar team helped me review the key details.
Shweta
Spain, October 28, 2026
★★★★★
Building Savings in India
I wanted to continue building savings in India while working outside the country. Policybazaar gave me information on the options I was considering.
Nitin
Switzerland, October 28, 2026
★★★★★
Support During Purchase
Very good team. Helped me buy Tata shubh sip wealth plan from canada. Planning to buy more
Simran
Brazil, October 28, 2026
★★★★★
Good Guidance for NRIs
As an NRI I wanted to know which plans I could consider. The team discussed the options and advised me to check the eligibility and terms.
˜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 Insurance Brokers Private Limited 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 01-11-2026 *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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