One of the most common impediments to a successful investment journey for NRIs is usually the confusion about your residential status. Especially if you keep traveling to and from India or have just recently moved abroad. To clear your confusion and get you all the information you need, here are some of the best investment options:
Fixed Deposit Accounts:
A fixed deposit is known for its guaranteed returns and is ideal for NRIs who are risk-averse. Investment in fixed deposits gives NRIs an option to diversify their portfolio and increase their savings. Unlike other investment options, NRI Fixed Deposit helps them to earn guaranteed returns that are not affected by market fluctuations.
Here is all the information you need to know about fixed deposit schemes for NRIs:
There are two types of fixed NRI deposits in India:
- NRO: Non-Resident Ordinary Accounts
- NRE: Non-Resident External Accounts
NRE: NRE FDs are beneficial for those who want to get their earnings which are in a foreign currency converted to the value of Indian currency. Some of the major highlights of an NRE FD account are that the interest earned is tax-free and both the principal and the interest amount are completely repatriable. Do consider that the money deposited is subject to currency rate fluctuations, and also that NRE joint accounts can only be opened with another NRI.
NRO: NRO FDs are primarily for income earned by NRIs in India. However, unlike NRE FDs, the interest earned through NRO FDs is taxable at a 30% rate, as per the Income Tax Act 1961. Also, only the interest earned can be completely repatriated, but the principal amount that can be repatriated is capped. The plus point is that in case of NRO fixed deposits, there are no exchange rate fluctuation risks. So, if you are staying abroad and your total income also includes earnings from India, NRI account in India can be an effective gateway to manage your funds within India.
Real estate in India is an ever-growing industry and holds significant prospects in sectors like hospitality, commercial, housing, manufacturing, and retail. They are also moderately-liquid investments and are quite popular because the risk involved is low while the return received is very high as real estate property prices keep increasing.
You can also investment in property as ROI of property is high in comparison to other options, you can check here- Dream Design Property
Mutual funds possess moderate risk. They are neither as risky as investing in stock markets nor as safe as investing in bank FDs. Mutual funds offer much higher returns than bank FDs. There are various fund houses offering various funds to invest in. You can pick as per your risk profile and financial goals.
You can consider investing in equity if you are an aggressive investor and are ready to take some risk. NRIs can invest in the Indian stock market directly under the Portfolio Investment Scheme of RBI.
India offers diverse investments options and you can easily multiply your savings by investing in either one of these options.