Investment Options for NRIs in India.

 No matter how far you go, a part of you will always yearn for home. No wonder there are so many NRIs who are constantly looking for investment opportunities in India. The country has been through major industrial development in the last 20 years, and hence, many NRIs are looking to invest in Indian markets. It helps them provide financial stability for their families back home and also earn some profits for themselves.

While there are many NRI Savings Accounts such as NRE Savings Account, NRO Savings Account to park money and generate some earnings, there are more lucrative opportunities for NRIs to invest their wealth in India. Here are some popular options:

Fixed Deposit

If you’re looking to invest your money and get decent returns, Fixed Deposits are a safe and promising bet. FDs are popular among residents as well as Non-Resident Indians because they help diversify your portfolio and you get guaranteed returns notwithstanding market fluctuations. You can invest in NRE Fixed Deposit Accounts, NRO Fixed Deposit Accounts, or FCNR Deposits. The rate of interest depends on the bank you invest in, and the amount, and the tenure of your deposit. Most of these deposits earn tax-free returns making it a great option for NRIs to invest in India.

Equity investments through PIS

The Indian stock market has been booming and if invested with caution and enough knowledge, one can make great returns. NRIs with Portfolio Investment Scheme accounts, NRE Savings Accounts, NRO Savings Accounts, and Demat Accounts can invest in the Indian stock market and gain many benefits. However, even though it can be highly profitable, equity markets are also highly volatile, so one must always take the necessary steps to educate oneself well enough to know where to invest and where not to.



 Real Estate

Apart from being a great investment option, real estate also has emotional value since it means you will always own a piece of land back home. Many NRIs invest in residential or commercial real estate in India and rent their property for profits. Many NRIs invest in residential real estate with the intent to make it a retirement home after returning to India.

The real estate market has been doing exceptionally well in India with an average annual return of 11.6% from June 2010 to June 2020, as per a report.

National Pension Scheme (NPS)

Through the government-backed NPS scheme, NRIs can invest in equity, debt, or both and earn tax benefits too. It is one of the best investment schemes out there. Any individual from 18-60 years of age can invest in the National Pension Scheme through an online e-NPS account. 

Mutual Funds

NRIs can invest in mutual funds in India and gain great tax-efficient returns. There are many mutual fund schemes in India available for the NRIs. NRIs can use their NRE Savings Account or NRO Savings Account to invest in mutual funds in India. The rate of returns depends on the type of mutual fund and an NRI’s investment capacity. Mutual funds are a great option since they offer long-term inflation-beating returns.

 Public Provident Fund

NRIs who have recently moved abroad can still keep their Public Provident Fund and gain returns. However, a PPF matures in 15 years so an NRI cannot extend it or open a new Public Provident Fund in India.

It's always a good idea to invest in a rapidly growing country like India. Based on NRIs' long-term financial goals they can choose many investment options. This will not only help NRIs create a robust portfolio of various asset classes but also help increase the country’s foreign exchange pool. 

SBM Bank India offers a range of investment options for global Indians who are looking for opportunities to invest in India. From fixed deposits with high yields, home loans to make sure you can get the real estate property you want to Portfolio Investment Scheme to invest in the Indian stock market, SBM Bank India has a range of offerings. NRIs can not only earn lucrative returns with these offerings but also enjoy world-class privileges to make your banking experience an even better one.

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