Are you one of the NRIs living in India who wants to know the plans for investments?

The article is for the NRIs who go out of India for a few years and then come back to India and want to plan their investments in the country.

There is a theory that the NRI’s earn more out of India because they earn in dollars and dirhams.

Even if it is true, then it is hard to deny the fact that the living cost out of India is more than what is in India, so they return and think of making investments in India.

Which bank account should be used by the NRI’s – NRE or NRO?

There are a lot of NRIs who keep using their savings bank account for a long period of time without realizing that it is illegal.

It is essential that the moment someone becomes an NRI, they convert their account to NRE or NRO or open one if needed in the situation.

The NRE bank account means that one will be able to take out full money and use it in the country that they live in.
The NRE account allows you to deposit both foreign and Indian income together.

The NRO bank account only allows a person to deposit Indian currency only.

Whatever the situation and income are, the NRI will need to open that account accordingly.

Here are four reasons why NRIs should have investments in India:

India is a fast and growing economy:

Suppose we compare the other countries where the NRI’s work then India is a fast and growing country in comparison.

It is imperative to make sure that you are investing your money in a country that is stable and keeps on growing.

It also helps in making the foreign exchange of your country grow.

High-interest rates:

The interest rates you get in India is higher than that you get in other countries, so it is one of the benefits that you can gain by having investments in India.

There are many NRIs who make the mistake of keeping their money in some other countries bank account which makes them gain little interest rate as compared to India.

You will understand the investments in India more appropriately:

If you are from India, then there is a possibility that you already know a lot of investment options and financial products that are offered here.

You will never be scared about your money because you will always have a sense of familiarity with the Indian market.

Mostly you will come back to India:

A lot of NRIs return back to India after working for a few years abroad, and it can be the same for you.

Once you come back to India, you will be able to use your investments in your favor.

If you think you will come back to India, then it is a very strong reason to have investments in India.

What are the options that NRIs have for investment in India?

● Bank NRE deposits:

Having an NRE deposit is one of the best investments that an NRI can make in India.

The interest that a person earns on the NRE deposit is tax-free, and it also gives a person risk- free returns.

You can use the NRE deposits for some part of your investment if you are planning on investing for less than five years.

● Real estate:

One of the best investments for NRIs in India is an investment in real estate.

Real estates require the big-ticket investments and a lot of NRI’s already have that which gives them the benefit of investing in real estate.

Investing in real estate should be slow, and a decision was taken with all required information because if this decision is taken in a hurried manner, then it can cause a loss for the NRI’s.

So do your research properly before investing in real estate.

● Insurance policies:

Various insurance policies are beneficial for NRIs.

With good research, the NRIs can find out the best insurance policy option for themselves and invest in it for a better return.

● Bonds and NCD:

The NRIs can also invest in the bonds and NCD available as options for them.

All these instruments have fixed returns which will be credited in your bank every year, and you will get the principal on maturity.

The liquidity needs to be compromised in such situations because getting out of it before maturity can be tough.

● Direct Equity:

If the NRIs know the equity game and facts, then direct equity is a great option for them because it will help in their investments.

It is imperative to do comprehensive research and know about all the stocks before investing in them.

Make sure not over to diversify the portfolio because with too much money spent on a shopping spree it can end you up with bad stocks.

If you still want to take high risks or do equity, then you can also search for PMS.

● Mutual funds:

Mutual funds have become very common for investments for NRIs, and if it is done with proper guidance, then it is one of the best choices for investment.

There are two types of mutual funds which are equity mutual funds and debt mutual funds.

The equity mutual funda is long term and can help in delivering good returns if it is appropriately managed.

The debt mutual funds are a nice choice for people who are looking for alternatives to bonds and bank deposits and also do not want to have the risk of equity mutual funds.

The debt mutual funds are also a good option if you are thinking of investing for more than three years because it gives various taxation benefits.

● PPF:

PPF account is a great choice for investments in India for the NRIs who opened the account while they were living in India because NRI cannot open a new or fresh PPF account.

The PPF account is also a limited-time account because it cannot exceed 15 years.