5 Best NRI Investments Options In India

Posted on Friday, August 27th, 2021 | By IndusInd Bank

High-interest returns, availability of numerous zero-risk investments, and hassle-free fund repatriation are some of the reasons why countless NRIs prefer to invest their hard-earned money in India. The wide range of investment instruments for NRIs help them meet their varied financial appetites and goals. To put it simply, you may be far away from home, but you’re never far away from its most dynamic investment opportunities.

Are you looking for NRI services that will help you diversify your financial portfolio and create a nest egg in India? Here are the top 5 investment avenues you shouldn’t miss out on.

1. NRE fixed deposits

Even if you’ve been living away from India for several years, you can leverage its fixed deposit FD account options. In a nutshell, you deposit a lump sum for a stipulated tenure and earn a guaranteed return on it. An NRE FD is precisely the same, except it allows you to deposit funds in the currency of your choice. Deposited funds are maintained in the Indian currency, and you can transfer them to any other account on maturity. What’s more, this investment instrument is entirely tax-free.

Not only do NRE FDs come with tenure and repatriation flexibility, but they also offer substantial interest rates. For example, you can opt for one at the IndusInd Bank for an ROI as high as 6%. As for tenures, they range between 1 to 10 years and the facility for partial withdrawals is available. Through an NRE FD, you can safely and steadily multiply your funds.

2. Mutual funds

NRIs can invest in mutual funds MF that align with their financial goals and risk appetite. You can choose from a diverse range of funds, ranging from low to moderate to high risk. If you research well and make timely investments, MFs provide a tonne of value in terms of returns.

Moreover, many schemes don’t have any lock-in conditions attached, so you can liquidate them at will. You can apply for mutual funds online at IndusInd Bank with ease. Click here to access our user-friendly portal to start making smart investment choices with our top-drawer NRI services.

3. Real estate

Investments in the Indian real estate market have proved to be a game-changer for countless investors. NRIs can partake in this safe and fruitful investment as well. If you have substantial disposable funds sitting idle, buy a property in India, and let it out on rent. You can open an NRO savings account to deposit the proceeds collected from rent.

Furthermore, an NRO savings account offers substantial ROIs and can be used for any other income generated in India. At IndusInd Bank, we offer ROIs on the NRO savings account as high as 5%!

4. National Pension System

Any NRI between 18-60 years can apply for National Pension System NPS account that has a Point of Presence POP in India. NRIs can also open an eNPS account provided they have a PAN or an Aadhar Card. You can use your existing NRE or NRO bank account to invest in NPS. There are 2 types of NPS-
• Tier 1 that offers tax benefits of up to INR 2 lakhs under Section 80C and Section 80CCD. The minimum investment amount is INR 500 per contribution and at least INR 6000 per year. When the investor is 60, they can withdraw 40% of the amount and invest 60% in a pension scheme.
• Tier 2, which is more flexible and has no restrictions on withdrawals but there is no tax benefit. The pension from the NPS will be paid in Indian Rupees.

5. Stocks and shares

If you can stomach some risk, investing in the equity markets can mean high returns. The Reserve Bank of India RBI allows NRIs to invest in direct equity, meaning stocks and shares, under the Portfolio Investment Scheme (PINS).

As an NRI, you can invest in stocks and shares only after opening an NRO or NRE savings account, a trading account and a DEMAT account.

The bottom line

These 5 investment instruments balance out your funds in safe as well as slightly risky instruments. Diversifying your NRI financial portfolio in such a way is critical as even if one asset underperforms, you have others that make up for it.

If you wish to begin your financial journey by applying to NRE FDs, mutual funds or other instruments, avail of special NRI services at IndusInd Bank.

Click here to know all about our NRI investment opportunities today!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.