If you are a Non-Resident Indian(NRI) you are eligible for number of benefits in India. A NRI has various options for investment in India and they can earn excellent returns on it. India is growing economically and has a large pool of consumers. The infrastructure in India is growing by leaps and bounds, making it the ideal time and place to make investment.
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Here are the top 5 investment options for NRIs in India:
Company Debentures and Shares: Through the Portfolio Investment Scheme(PIS), NRIs can make investments in non-convertible debentures and shares of various companies in India.
Once a PIS account is opened, shares and debentures can be sold or bought at stock exchanges in the country. Nowadays, many banks like ICICI Bank offer PIS accounts. However, it is important to remember that investments have to be made as per the guidelines of FEMA.
Mutual Funds
Investing in mutual funds is a great option for any NRI. However, these investments can be made by NRIs only under NRI, NRO or FCNR accounts. The other option is to invest through inward remittances. If you are looking for benefits like repatriation benefits, you will have to invest for at least three years to gain such benefits.
These investments too have to be done under the guidelines provided by FEMA. You can make investments in top mutual funds and reap the benefits.
Real Estate
Investing in real estate is considered to be one of the safest options in the country. It has become one of the most preferred investment options for NRIs. The norms for NRI investment in real estate have become simplified which is the prime reason that more & more NRIs are looking to invest in the industry. Investing in real estate in metropolitan cities like Mumbai, Bangalore, etc. are attractive options if you are looking to make investments in real estate.
Residential properties are not the only real estate investment option. You can also invest in commercial properties anywhere in the country.
Bank Fixed Deposits
Investing in bank fixed deposits is another great option for NRIs. If you are looking to gain repatriation benefits, you will need to invest for a minimum for a minimum of three years. You should note that banks do permit these deposits to be opened through Foreign Currency Non-Resident Bank accounts (FCNRB). Your account can be maintained in any currency of any country. Your funds in this type of account can be repatriated.
Bonds and Government Securities
If you are looking to make an investment in India, you can opt for investments in government bonds and securities. This investment can be made freely by any NRI. Again, this type of investment needs to be done for at least three years. If you have bought your investment from NRE or FCNR account, you can get repatriation benefits for your maturity proceeds.
If you make your purchase from an NRO account, the maturity proceeds will be credited only to the NRO account and thus, cannot be repatriated.
As mentioned earlier, there are a vast number of investment options for NRIs. However, not every type of investment may be suitable for you. You should go through each and every detail before you make a decision. You need to make sure that your returns are maximized or there would not be no point to making the investment.
The point of investing is to gain profit and if you are not wise about the options you choose, you will be left losing money rather than gaining profit.
Since investments made by NRIs are subject to the rules and regulations of foreign exchange, you will need to seek the help of a professional to help you make the right investment. Some investments are required to be made as per the guidelines of FEMA. This is why it is so important to make sure that a professional who is well-versed in the guidelines takes care of your investments.
Although the options for investments may not change, it is important that you make sure that all the formalities are taken care of before you make any investment in India.
References : Investment Ideas, Common Floor
