Best NRI Investment Options in India | Nifty Trading Academy

NRI Investment Options in India

What are the Investment Options for NRI in India

Well, are you an NRI (Non-Resident Indian) and finding the “Best Investment Options in India for NRI”?

Then, this source or the article will be best for you as in this you will be seen the various instruments that are available for the NRI to invest their money in. India has seen tremendous growth in its economy in the past many years. Because of this, NRI’s treat this as an investment opportunity to allocate their money and to get the best return on it.

Do you the reason why NRI wants to invest in India?

NO, then we will answer this question also in this article.

Most of the NRI’s family resides in India and for them also they find the investment opportunities that will make them earn the passive income for their family. So, now let’s move straight into the article to know about the various “Best NRI Investment Options in India”.

Top 5 Saving Schemes for NRI in India

  1. Mutual Funds
  2. Real Estate
  3. Fixed Deposits
  4. Equity
  5. Government Securities

#1 Mutual Funds

  • Mutual Funds are the large pools of different investment type of assets which are actively managed by the fund managers.
  • All the Asset Under Management (AUM) follows the strict rules and regulations by the Securities and Exchange Board of India (SEBI).
  • It possesses moderate risk because it isn’t the safest instrument to speculate within the bank and additionally not the riskiest investment available in the stock markets.  
  • Mutual funds can give additional returns than a bank.
  • NRI’s will invest in Indian mutual funds through Non-Resident External Account (NRE), Non-Resident Ordinary Account (NRO) or Foreign Currency Non-Resident (FCNR) accounts.
  • They accustomed to invest in INR (rupees) solely and not in foreign currencies. 
  • The rate of interest depends upon on the categories of funds like debt, equity or hybrid.
  • There are no further limitations for NRI’s to speculate in funds.

Also Read: How to invest money in share market in India?

#2 Real Estate

  • Making an investment in the property or in real estate has been the topmost favorite thing for the NRI to make their investment in India.
  • For the NRI’s they can choose both the ways to make the investment either in residential or in the commercial.
  • This investment opportunity provides them with a long term growth plan.
  • As India being the developing nation and it had already improved their economy far better than before.
  • The prices of the properties near the metro cities have been skyrocketed and it made the NRI more attracted towards this.
  • There are rules applicable for different account types and there are limits of the money also.
  • They try to invest in the best property that will provide them with the best returns with the long term period.
  • Investing in India results out to be a good investment option as it is a developing nation and that also provides opportunities in future.

#3 Fixed Deposits

  • This is the most common investment available for both the residents and non-residents of India.
  • This does not require the lock-in period for the withdrawal of the amount.
  • In this, the amount that is deposited and the tenure that is selected decides the rate of interest.
  • If the tenure is longer then the interest rate will also be higher.
  • Fixed deposit is considered as the safest form of investment.
  • NRI can start their fixed deposit with their NRE, NRO or FCNR accounts.
  • NRE (Non-Resident External) account is that account in which the investment is done in INR (rupees).
  • NRO (Non-Resident Ordinary) account is that account that is generally used for the Indian income like rent, dividend or the pension funds.
  • FCNR (Foreign Currency Non-Resident) account is used for the foreign currencies, to eliminate the currency fluctuations risk.

#4 Equity

  • Equity is stated as the riskiest investment instruments and that one individual can only take the risk that can invest in equity.
  • For making the investment in the equity, the NRI’s can invest through their Demat account after getting the permission from the SEBI registered broker.
  • But the NRI’S cannot invest more than 10% of the paid-up capital in any of the particular company.
  • After the 2019 elections, the stock market has set the new highs in the market which in the future can attract more numbers of NRI or the FDI’s investments in India.
  • Further, they also need the trading account that should be linked up with the NRE or NRO account with the Banks.

#5 Government Securities

  • The government also gives the benefits to the NRI’s to make the investment in the government securities.
  • In which one of them are Treasury Bills or T-bills that have the maturity ranges between the 3 months to the 12 months.
  • These bills are bought at the RBI auction.
  • These bills do not earn the interest for the investors but are redeemed at a discount.
  • There are also different types of government securities:
  1. Floating Rate Government Bonds
  2. Fixed Rate Government Bonds
  3. Capital Index Bonds

Reasons for Why the NRI interested to Invest in India?

  1. To get the returns
  2. For building the financial assets
  3. To prepare for the retirement
  4. To provide the funds to their family

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