Best Investment Plans For An NRI In India
Working abroad and earning in a stronger currency than Indian Rupees definitely gives you a chance to save more and when that is the case why not invest in something better and bigger. We have compiled a list for you to go through some of the best investment plans for an NRI in India.
But before we go in the detail of types of investment let’s check why should an NRI consider to invest in India –
MAKING MORE MONEY –
Everyone knows if we use our money for better things we will gain out of it. Investing in India will give you good returns unless you have taken your decision wisely and there are less risks associated with it.
Your current salary could be enough for you and your family but maybe you can save a little more for rainy days and what’s better than having a monthly fixed amount of savings.
BUILDING UP ASSETS-
You can definitely buy a house and rent it out, this way you get an extra monthly income and also have a security of coming back to India anytime and settling down for good without paying rentals.
PLANNING FOR FUTURE –
Investing can also result as a good retirement plan, securing your old age and not letting you be dependent on your children.
BEST INVESTMENT PLANS FOR AN NRI IN INDIA –
REAL ESTATE –
Buying a property from a good dealer and at a nice place or locality can be a can be one of the best investments and as mentioned earlier it can give you a sense of security as well. If you are planning to invest in property you can check Real Estate Developers Who Cater To NRI
FIXED DEPOSIT ACCOUNT –
This is one of the most common and trusted investments. For an NRI there can be 3 types of accounts and the interest rate depends on the type of account you have. The three types of accounts are –
NRE ACCOUNT – Non Resident External Account
NRO ACCOUNT – Non Resident Ordinary Account
FCNR ACCOUNT – Foregin Currency Non Resident Account
Depending upon which account you have and which bank it is in the interest rate may vary so do your research properly before choosing a bank.
NATIONAL PENSION SCHEME –
A person from the age of 18 to 60 can opt for NPS. It allows you save for your retirement and is of 2 types- Tier 1 and Tier 2.
In Tier 1 type of account all your funds will be locked until your retirement and in case you retire before 60 years of age you only get 20% of the cash, you are liable to invest the rest in something which gives you a fixed monthly income.
Only Tier 1 account holders are eligible to open a Tier 2 account.
MUTUAL FUNDS –
Mutual funds are operated under strict rules of SEBI- Security Exchange Board Of India and always have a risk associated with it. But no doubt that it has higher returns as well.
If you have an NRE,NRO or FCNR account then you can invest in mutual funds.
DIRECT EQUITY –
if you have a good knowledge of how to deal and survive in the stock market then you can opt for this option.
To invest in stocks an NRI should have a NRE or NRO account dedicated only for this purpose and also a SEBI trading account with a registered broker.
However, being one of the good options for investment it always has a risk associated with it.