Investment Plans for NRI

Fixed Deposits

This is a popular investment option not just amongst Indian residents but also among non resident Indians. This is considered to be a safe investment option as the money is invested in the banks.

Non resident Indians can deposit their money in India through the below accounts:

• Fixed Deposit in NRE Account (Non-Resident External Account)
• Fixed Deposit in NRO Account (Non-Resident Ordinary Account)
• Fixed Deposit in FCNR Account (Foreign Currency Non-Resident Account)

Mutual Funds

Investment in mutual funds can be made based on your risk profile and investment objectives. Compared to fixed deposits, mutual funds offer high returns. NRIs can invest in mutual funds through NRE and NRO accounts in India rupees and not in foreign currency. The returns depend on the type of fund you invest in i.e. debt, equity, hybrid, etc. In case the NRI has income in India then investment in ELSS mutual funds provides tax benefits as well under section 80C.

Unit Linked Insurance Plans

This is a type of life insurance plan that comes with the benefit of investment as well as insurance. This type of investment helps in wealth creation as well as providing financial protection to your family. This is an ideal investment option for investors with modern to high risk taking capacity. The investor can choose to invest in various fund options depending on the tenure and life goals. In the long run, mutual funds help in beating inflation.

Real Estate

The Indian real estate market is booming and for NRIs investment in cities like Mumbai, Bangalore, Pune, etc. is considered to be a great opportunity. Few of the real estate investment options in India include villas, plots, apartments, etc. It is important to note that NRIs cannot invest in plantations and agricultural land in India.

National Pension System

In India, an NRI aged between 18-60 years can open an NPS account with a point of presence in India. An eNPS account can be opened using a valid PAN and Aadhar card. Investment can be done via NRO or NRE bank account. Investment can be made in equities, corporate bonds and government securities. However, only 75% can be invested in equities. It is also important to note that the pension from NPS will be paid in Indian rupees. 20% of the accumulated corpus can be withdrawn before the age of 60 and 60% can be withdrawn at the age of 60 and remaining 40% must be utilized to buy an annuity plan.