Over the years the opportunities to invest for Non Resident
Indians (NRIs) in safe investment options has increased
There was a time when NRIs found it safe to invest in real
estate. But banks today also offer great number of financial
solutions. If you are an NRI, it is suggested to invest in
financial assets rather than real estate. Real estate is a popular
option but comes with its own set of challenges which NRIs and even
locals routinely underestimate, only to repent later.
Financial assets are much easier to handle from abroad and are
free from legal issues, possession and maintenance issues, require
lower time and effort from you, and of course, don't require
you to handle "black" money. Also, most transactions can
be done online from wherever you are, giving you significant
control. NRIs can also consider fixed deposits or mutual fund
schemes. Mutual funds tend to be slightly risky investment as
compared to some of the other instruments. Fixed deposits can be
considered the best plan for financial investment in India.
It is important to remember for NRIs that some additional
documentation maybe required. These include a passport photocopy
with valid visa, overseas employment letter, PAN Card and a local
The length of your financial investment in Indiadepends upon you
and your assets. However, these are the few commonly available
Very short term – A few
days/weeks/months:Bank Fixed deposits, Liquid/Ultra Short Term
Short Term – 1 to 3 years:Short
Term Debt Funds
Medium term – 4 to 7
Years:Combination of Debt and Equity Funds with Debt portion being
Long Term – 8 to 14
Years:Combination of Debt and Equity Funds with Equity portion
Very Long Term – 15 years or
Always consider the taxation policy before investing in India.
It should never be taken for granted that the tax policy of one
country is same as the other. If you are new to the entire
investment scenario, it is advised to seek professional help.
Professional services will help you chalk out your entire
investment plan. You can also learn about new methods of
If you're considering investing a significant portion of
your hard earned money in India, do look for customised, honest and
professional advice by engaging a qualified, fee-based financial
planner/advisor in India.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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