What are the best investment options available for NRI’s today?

Plenty of individuals have traveled abroad for various purposes such as earning in a foreign currency, change in job location or even migration purposes. Some individuals also travel abroad to study and end up applying for a job with the same country.

No matter the reason, plenty of these individuals still wish to invest in opportunities, back in their home country of India. Supporting this decision is the government regulations that provide the legal framework along with the value of the falling rupee. Along with this, there are plenty of options to consider when it comes to investing. Here are a few options for NRI investment in India you can consider:

Bank Fixed Deposit:This is one of the most popular choices amongst NRI who wish to invest. Not only does plenty of banks offer this opportunity to NRI’s, but you will also have the option to invest in the local currency or the foreign currency. Normally, banks provide attractively, and high rates on NRI fixed deposits, making in the best option for high returns. With this option, you can opt for NRE deposit, NRO deposit or even the FCNR account.

Mutual funds: Mutual funds is another option that can be taken into consideration for anNRI investment in India. This is extremely beneficial to those who already hold any of the three NRI bank accounts, namely the NRE, NRO or FCNR account.  However, the investment in this option must be made in foreign currency. Additionally, the investment amount can be directly debited from the NRE or NRO account.

Direct Equity: Under the portfolio investment scheme of RBI, NRI’s can invest directly in the stock market. Under this regulation, the maximum investment that cannot go beyond 10% of the paid-up capital of the company. In this case, in addition to the NRI account, a demat account, and brokerage must also be opened. All transactions must be made through the stock broker only. Additionally, NRI’s do not have the permission to trade during the day or short sell within India.

Real estate sector: If NRI fixed deposits have been a popular option for NRI’s, the real estate sector has been a traditional option. Plenty of Indians may leave home and settle abroad, but a property back home will always consider as a prized possession. This NRI investment in India also has an added advantage, as property prices often appreciate, providing the ideal form of emotional security. All in all, the real estate sector is considered as one of the most lucrative investment options for NRI’s.

Apart from these options, there are plenty more to consider. However, you must first check the regulations and conditions of your resident country when it comes to investing these options in your home country.


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