NRIs are looking for the Best NRI investment options in India but the problem is that NRIs tend to succumb to marketing gimmicks by sellers (mostly bankers) and end up buying products that they don’t need.India has rapidly grown and provides the potential of sharing that growth in the form of investment returns. NRIs also has an emotional reason to invest. Having a part of India in their portfolio gives them a reason to attach, keep abreast & visit India. Here is a complete checklist of all the investment options for NRIs to invest in India.
Best Investment Options for NRIs in India
Mutual Funds
NRIs except for the USA and Canada can invest in Indian Mutual Funds. NRIs from the US and Canada have certain restrictions and can buy only a select few Mutual Fund schemes. (even other fund houses request for additional information at the time of purchase & in a few cases even at the time of redemption)Depending on risk profile, an NRI can invest in equity funds, balanced funds, debt funds, liquid funds, and MIPs.
2. Real Estate
Real estate in India is much sought-after by NRIs. This requires a larger investment, and many NRIs have a cash surplus for the same. While this investment form may be tempting for many, it also requires a sound understanding of property rates and expected growth. Many times, NRIs invest in real estate based on very limited information. However, it is important to conduct thorough research on the property and make an informed decision. While considering a real estate investment in India, it makes sense to pay legal fees to a lawyer and get all the documentation verified. Another option is to approach a well-established broker.
3.NPS
NRIs can open National Pension Scheme accounts. Now there is an option of opening an NPS account as well if you have a PAN card or Aadhaar card. NRE or NRO accounts can be used.If you are an NRI between the ages of 18 and 60 years,For an investor below the age of 60 –A minimum of 80% of the total investment will have to be annuitized and withdrawal is limited to a maximum of 20%the total corpus is less than Rs. 1,00,000, the entire sumwithdrawnannuities and the maturity account are taxable.
4.Government Securities
Treasury bills or T-bills are government securities that have maturities ranging between 3 and 12 months. T-bills can be bought at RBI auctions. For long-term investments, NRIs can consider the following government securities:
5.Fixed rate government bonds–The interest rate in these is fixed.
Floating rate government bonds–The interest rate can change according to the market movements.Capital index bonds (CPI bonds)–The coupon payment on these is adjusted as per the ongoing inflation rates in the mark