For the NRIs who stay and work in a foreign country, the major trouble is to find the best investment plans for NRIs in India. You principally have two choices – should you spend it overseas where you and your family is settled at present, or should you invest it in India, which is home for the complete family. This puzzlement arises from the fact that a Non-Resident Indian cannot stay out of the country forever. Moreover, the tax policies in a foreign country could very well put you in a detrimental state of affairs if you choose to endow in the markets there.
Therefore, you should explore the second alternative, i.e. investing in India. The main question that comes to one’s brains is – Is a Non-Resident Indian permitted to invest in India? The answer is why not? The Indian government has simplified the system and made sure that it is tremendously easy for NRI investors to play in the Indian markets. That does not mean there are no regulations concerning the same. But this has certainly been made a lot uncomplicated and effortless now.
So here are the best investment plans for NRIs in India. Check them out!.
Fixed Deposit
Investing in Fixed Deposit is not just accepted among the inhabitants of India but is also one of the best investment options for NRIs. Being a Non-Resident Indian, you can open your FD through your NRE, NRO, or FCNR Account.
More often than not, banks offer striking and high-interest rates on NRI Fixed Deposits. By and large, you can look forward to receiving interest amid 6 to 7% on your account balance. Besides, if you are a senior citizen, you may get the benefit of earning an additional interest of one percent. Likewise, this investment option is appropriate for risk-averse investors as FD is a reasonably safer form of investment.
Equity
In case you are a persistent investor, you can think about investing in the equities listed in the Indian market. If you are a Non-Resident Indian, you can straightforwardly endow in the Indian stock market under RBI’s Portfolio Investment Scheme (PINS).
As a Non-Resident Indian, to invest in the stock market in India, it is necessary to have a bank account (NRE or NRO Account) as well as a trading Account with a registered broker by receiving a consent letter from the RBI, in addition to a demat account. Nevertheless, the highest amount of your investment in the stocks of an Indian company cannot go beyond 10% of the paid-up capital.
Furthermore, note down that, as a Non-Resident Indian, you are not at all allowed to execute intraday trading along with short selling in India. It means that you must own the stocks before you can put them up on the market for sale.
Mutual Fund
At the moment, AMFI is working hard to prop up Mutual Funds among the Indian population. Mutual Fund organizations collect money from their financiers and after that invest the same in the diverse economic assets. Mutual Funds have restrained risks as they are neither as chancy as direct trading in stocks, nor they are as risky-candid as Fixed Deposits. Moreover, mutual Fund investments can be extremely lucrative. There is an overabundance of schemes obtainable for Mutual Fund that you can pick depending on your risk hunger and financial goals.
However, if you are a Non-Resident Indian, you would, sorry to say, face some restrictions in mutual fund investing in India for the reason of some inflexible FATCA policy. You need to have an NRE or NRO Account for endowing in the Indian Mutual Fund industry. What’s more, you have to invest in Indian rupees as well. You cannot invest in any foreign currency.
National Pension Scheme (NPS)
If you are on the lookout for one of the most tax-efficient investment options in India, you can think about investing in NPS (National Pension Scheme). It is a lucrative, easily available, and tax-efficient way to endow your money.
NPS is an Indian Government sponsored pension system and is the best investment plan in India. If you endow in this instrument, your whole wealth during maturity is treated as tax-free. Above and beyond, you don’t have to pay a penny to the government as income tax on the amount that you take out as the pension. If you are a Non-Resident Indian aged between 18 and 60 years, you can open an NPS Account to begin endowing in this scheme.
Investment in National Pension Scheme can be made by:
- Citizen of India living in India
- NRI with Indian citizenship
- Keep in mind that PIO and OCI are not entitled to opening the NPS account.
Real Estate
Endowing money in the real estate sector has been a conventional and an all-time favorite way of investing for most of the Non-Resident Indians. Having a house or property back in your motherland is measured as a precious possession together with the best investment plan in India. In addition to monetary gratitude, it gives you a sense of emotional refuge. The real estate sector is considered as a profitable, worthwhile and one of the investment plans in India for NRIs.
As a Non-Resident Indian, you can endow in the blossoming real estate market by investing in commercial or residential properties. Investments in farming and agricultural lands are constrained for NRIs, but you can still possess it if ancestors traditionally inherit them. However, commit to memory that you can make any real estate purchase only in Indian rupee.
Here’s to happy investing!
As a final point, the world and distance are only getting smaller. And we have folks cutting across boundaries and wiping out indistinguishable lines between countries. So, as a balanced and sane investor, it makes sense to endow your money in the best investment options in India for NRI without being expelled by market policy, government interference or atypical inflation for that matter. Happy investing!
Read more from Housewise