Over the years the opportunities to invest for Non Resident Indians (NRIs) in safe investment options has increased tremendously.
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 address proof.
The length of your financial investment in Indiadepends upon you and your assets. However, these are the few commonly available options:
- Very short term – A few days/weeks/months:Bank Fixed deposits, Liquid/Ultra Short Term Funds
- 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 higher
- Long Term – 8 to 14 Years:Combination of Debt and Equity Funds with Equity portion being higher
- Very Long Term – 15 years or more:Equity Funds
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 investment.
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.