Being an NRI, investments in India can help grow your finance, multiply your assets, and plan for early retirement. Higher interest rates and diversification makes India a suitable place for NRI investments.
This article will help you to learn about the different investment options available in India.
Different options for NRI Investments in India
1)Direct Equity Investments
2)Mutual Fund Investments
3)Real Estate Investments
4)Fixed Deposit Bank Accounts
1) Direct Equity Investment
Direct Equity Investments enable you to invest directly in the shares of the companies in the stock market. To begin investing in direct equity investments, all you need is a Demat account, a trading account, and the assistance of a stockbroker. Direct Equity investments are one of the best options of investment for NRI.
Benefits of Investing in Direct Equity for NRI
1) There are no limits confined for NRI investment
2)You have complete control over your investment.
3)You can liquidate your investments anytime.
2) Mutual Fund Investment
Mutual fund investments are one of the most secure investment options for NRIs. In this type of investment, funds from various investors are pooled and then invested according to the investment objective. The funds in this type of investment are managed by the fund manager.
Benefits of Mutual Fund Investment for NRI
- More security and Transparency
- High Return on Investments
- Highly Liquid
3)Real Estate Investment
NRI property investment is one of the popular methods of NRI investment in India. It appears that NRI real estate investment in India will surge to $14.9 billion in FY22. Investing in the property in India when you are living abroad will give you additional income sources and also the secure feeling of having a property.
Benefits of Property Investment for NRI
- Passive income
- Steady cash flow
- Tax Benefits
4)Fixed Deposit Bank Accounts
Fixed Deposit Bank Accounts are another safest investment option available for NRI. The fixed deposit allows you to deposit a certain sum of money for a certain period, Your funds will be kept safe during the entire period after which you can withdraw the amount with the interest.
There are three types of Fixed Deposit Bank Accounts available for NRI - Non-Resident External Account (NRE), Non-Resident Ordinary Account (NRO), Foreign Currency Non-Resident (FCNR).
Benefits of Fixed Deposit Bank Accounts for NRI
- Simple and secure Investment
- Fixed Returns
- The benefit of Compound Interest
Bonds are one of the investment instruments which facilitates the investor to give debt to the bond issuer. Depending upon the type of bond, the bond issuer is obliged to repay the investor the interest and/or the principal within a certain period as mentioned in the bond. There are different types of bonds -PSU Bonds, Non-Convertible Debentures (NCD), Perpetual Bonds.
Benefits of Bonds for NRI
- Low risks when compared to stocks
- legal protection
- Predictable source of income
There are multiple options for NRI investments in India. It is best to consider your financial plan So you can choose the best investment option.,NRI investment services will support you with your investment plan.