NRI investment Guide

22 Jun, 2017

The Indian economy is an investment centric economy. This means that unlike the economies of super powers like the USA which thrives on spending and credit rather than saving, India believes in the philosophy of saving and preparing for the rainy day. As a result of this, money invested in India always reaps good benefits and returns and hence, the NRIs usually prefer routing their hard earned money to park it under Indian investment schemes rather than saving it overseas. This post provides you with a general investment guide for NRIs looking to invest in India.

Who are NRIs – the basics?

NRI is an abbreviation of the term, ‘Non Resident Indian’. Such person includes an individual of Indian origin who resides abroad either for the purpose of pursuing employment or for carrying on any for an indefinite duration of time. An NRI can either be an Indian citizen or he can also be a foreign citizen.

Opportunities and Options of Investment – Mutual Funds

The Indian investment market is alive and buoyant with the latest modes of investments which are mutual fund investments. At this stage the mutual fund market in India is performing in a much better manner as compared to any other developed countries. One of the plausible reasons for such buoyancy in the market could be because of the handsome returns which these different investment modes give back as a result of which the financial experts are able to compete and surpass the traditional share market. Apart from this, mutual funds also provide good rebate to tax payers which makes them all the more appealing as also the flexibility it provides. Mutual fund allows the investor to withdraw from the investment scheme at any juncture in case if he or she requires funds at any point of time.

Immovable Property

If your long term plan involves you coming back to India and setting up your final base here or whether you just want some immovable property for yourself in India, then as NRIs you can even do that. Today if you look around, property rates in India are sky high. So it makes a lot of sense for NRIs to park their excess funds in buying a house of their own here in India as then earning in a different as well as higher currency helps them in fulfilling the loan liability rather quickly as well as easily.

Other Investment options

Apart from the two major investment options which have been stated above, there is couple of other investment options also like the National Pension Scheme (NPS) which enables you, as a policyholder to create a corpus of funds which will help you in your post-retirement days. An NPS also gives the investor tax relief as well. Besides these major sources of investments, there are the other conventional modes of investments as well like fixed deposits, savings account like NRE, NRO or FCNR account, bonds etc.


The sky is literally the limit when it comes to choosing investment options in India. The key, however, is for you to ascertain and be clear of what your plan and goals are and by when do you expect to accomplish them.

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