Real estate does permit NRIs to invest in brick as well as mortar. The asset is indeed tangible, and they have indeed completed control over the selection and due diligence. Besides, trading in stocks does happen on a day-to-day basis, and people can rather lose a significant chunk of their investments within minutes in volatile stock markets.
NRI can also invest by applying for NCDs. They can also buy existing bonds by purchasing via an exchange. The government of India has introduced a separate route viz. Fully Accessible Route (FAR) for investment by non-residents in securities issued by the Government of India.
NRI can also invest by applying for NCDs (if allowed by the issuer). They can also buy existing bonds by buying via exchange.
Investment in NPS can rather be done and also be managed online. If a person is filing and paying tax in India, NPS can also be made use of to save tax under section 80 CCD (1B). Acquiring a piece of land, even a portion in a locality or a shop in India is indeed cherished by NRIs.
Opening a PIS account is indeed mandatory for this. Mutual Funds have several scheme categories and NRIs can rather invest in Large Cap Funds, Large & Midcap Fund, Mid Cap Funds, Small Cap Funds, ELSS Funds, Index Funds, Sectoral funds as per their respective choice. One does need to complete KYC & documentation before investing. NRIs can indeed choose to invest via SIP or lump sum mode.
Real estate in Hyderabad can be considered seriously by NRIs.
Why India investment?
NRIs prefer to invest in India to create a nest egg, familial responsibilities, retirement plans as well as more.
The Indian economy has of course booming past two decades, yet the power of foreign currencies such as USD, Pound sterling, and the Euro has steadily increased as compared to the rupee. The value of these currencies is growing
1. Diversification: A portfolio can be diversified with investments such as debt funds, equity funds, liquid funds, stocks as well as more in various sectors as well as industries. The idea is to get the best of investments.
2. Alternative Assets: Economic progress means better and newer forms of investments options that can help growth in prosperity. This is what NRIs look out for and there is much scope for this in India. A popular option is P2P lending. The market project of P2P lending is indeed good.
3. Better interest rates: Indian banks are known to provide better interest rates as compared to Australia, China, Japan, and Saudi Arabia as well as several other countries. Unfortunately, quite a few NRIs do not know about this and end up with their money just remaining in the US or Europe.
4. Retirement: Setting up retirement plans either investing in mutual funds as well as stocks or perhaps buying real estate is much easier as well as cheaper in India as compared to several other countries such as the US. NRIs planning to return to India after retirement can indeed look into this sort of investment.
What do NRIs need to remember before investing in India?
- It is illegal to make use of an Indian savings account after a person rather moves out of the country
- NRIs are required to be able to convert savings bank accounts into NRE or NRO accounts.
- NRIs are rather permitted to purchase properties in India. The catch- it needs to be of joint purchase with a person living in India.
