India has seen massive growth in the last two decades; as a result, many country’s have started investing in India as a foreign direct investment (FDIs). This has attracted the non-resident Indians (NRIs) to consider India a viable destination to invest in.
The Indian Government is making our country more conducive for business with each passing day. With various options to invest in, NRIs are finding it difficult to choose the best options for them.
Considering the returns, the following investment options for NRIs are best in 2019:
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1. Invest Your Money in Direct Stocks and Equities
As an NRI, you must consider the option of investing your money in direct stocks and equities.
Now you will ask whether investing in stocks is still possible? Yes, you can always invest directly in Indian stocks provided you have a PIS account in place, which is linked to the concerned NRO or NRE savings account.
NRIs are only allowed one PIS account, according to the RBI’s guidelines, there are certain restrictions on the number of acquired stocks of an organization. Also, it would help if you took note of the fact that intraday trading isn’t allowed, and all the profit related to your investment is taxable as well.
Despite all these intricacies, if you execute trading strategically, direct stocks and equities are great money-making options.
2. Real Estate
Indian real estate is skyrocketing these days. Investing in Indian real estate can fetch you a handful of money, although it isn’t possible for the NRIs to invest directly in agricultural properties and farmlands.
The real estate prices in major cities of India such as Bengaluru, Delhi, Mumbai, and Pune have touched sky highs over the last decade or so. You can purchase houses in India and then let out for rent. This will fetch you a good amount of money.
If you are making a real estate investment, the proceeds need to be deposited in the concerned NRO account, which is subject to repatriation restrictions.
3. Invest in Governmental Bonds and Securities
As an NRI, you want your birthplace country to reach new heights every day. You can contribute by investing directly or indirectly in government-initiated schemes. This will not only help your native country to grow, but it is an excellent investment option for you. Investing in such bonds will provide you with additional benefits with assured fixed returns.
NRIs can freely invest in government securities and bonds through NRO and NRE accounts.
4. NPS or National Pension Schemes
National Pension Scheme or NPS offers a wide range of investment options to choose from, including equity-specific investments and fixed income policies.
Kindly note: NPS is an investment option for NRIs who have moved to another country but still holds Indian citizenship.
Investing in NPS will provide you with tax benefits. Any NRIs between the age of 18 – 60 years old can invest in this scheme. NPS offers an annual interest of 12% – 14%.
5. Invest in Life Insurance Policies, Especially ULIPs
It is advisable to invest in schemes related to life insurance, but as an NRI, you must specifically focus on ULIPs. The Unit Linked Insurance Plan is a great way to invest as part of the premium paid will go in diversified funds according to your preference, and the remaining amount will be used as the insurance cover.
NRIs investing in ULIPs must hold:
- Indian passport
- Should have a parent or a grandparent who is an Indian citizen.
In addition to that, you should keep a close eye on the taxation schemes depending on:
- Maturity
- Accumulation
- Investment stage
Your NRI (Next Right Investment)!
Other than these short-term investments, you can invest in something that can secure your loved one’s future financially. To secure the financial aspects of the family, a person who is moving to a foreign country for work must invest in the best term life insurance plan to secure his/her family. Term plans provide financial stability to your family in case of your untimely demise. Moreover, the term plans these days not only provide benefits to the residents of India but also to the NRIs.
Term plan insurance from reputable insurance companies such as Max Life Insurance offers many features such as:
- Lumpsum payment
- Monthly income benefit
- Rider facility
- Life stage benefit
These are some of the perks of investing in India for NRIs. As a Non-Resident Indians, you not only have the option to invest in the best short-term investment plans but also long-term plans such as term insurance and ULIPs.
Some of the policies mentioned above require Indian citizenship, but a majority of the suggested ideas offer additional benefits with decent returns.
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