Top NRI Investment Plans in India: Secure Your Wealth Smartly

Fixed Deposits

Fixed deposits are usually known as a safe and reliable investment option for NRIs. As FDs come with guaranteed returns on maturity, you can be assured of the tenure and the amount at maturity.

What you need to know?

• NRIs can invest in three types of deposits: NRE, NRO and FCNR.
• The non-resident external (NRE) allows investments through foreign earnings.
• Non-resident ordinary (NRO) allows investment through income generated within India.
• Foreign currency non-resident (FCNR) allows the deposit of foreign currency in funds.

Mutual Funds

Mutual funds are popular as they allow investment in various types of assets through just one investment. These funds are professionally managed, which allows NRIs to sit back and see their money grow eventually.

What you need to know?

• Mutual funds are primarily investments made in equity, hybrid and debt funds.
• Mutual funds allow investment through both systematic investment plans and lump sum.

Note: There are certain restrictions on NRIs from the US and Canada that must be checked to avoid compliance hurdles.

National Pension Scheme

The National Pension Scheme is worth exploring to create a structured investment plan that helps in securing a peaceful post-retirement life. This type of investment plan is backed by the government and is usually ideal for long-term investment.

What you need to know?

• The National Pension Scheme account can be opened simply through any authorised service provider.
• NRIs must have a valid PAN card, an Aadhaar card and a functioning NRO or NRE bank account.

Stock Market

India’s booming economy has transformed its stock market into an extremely profitable investment landscape that NRIs can explore. NRIs with an appetite for risk and a will for higher returns can explore India’s stock market.

What you need to know?

• NRIs can invest in India’s stock market under the Portfolio Investment Scheme introduced by the Reserve Bank of India.
• NRIs must have either an NRE account or an NRO bank account.
• Additionally, NRIs must also have a demat account and a trading account.

Government Bonds and Securities

Investment in bonds with securities that are backed by the government typically comes with a safe and stable investment window. NRIs have a wide array of options like treasury bills, sovereign gold bonds etc. With comparatively low risk and steady returns, these investment options are reliable for novice investors.

Investments in India: Everything an NRI Should Know

The Indian economy is a profitable opportunity for NRIs to grow their wealth seamlessly. However, it is important to learn about the compliances and prerequisites for investments in India as an NRI.

Create an Account

To invest in India, especially in certain funds it is important to remember that investments through foreign currency are not allowed. You can open an NRE or NRO account for investments.

• The NRE account allows investments through income generated overseas.
• The NRO account allows deposits in Indian currency.

Investment Trivia: The inflow in NRI deposit schemes amounted to nearly a total of $7.8 billion in April-August, 2024.

• Invest Directly or PoA
  To invest in India NRIs can either invest directly or by creating a power of attorney.
  - A direct or self allows NRIs to invest directly after completing the KYC process.
  - By creating a power of attorney, the authorised person can invest on behalf of the NRI.

• Complete the KYC Process
  NRIs must ensure that they have completed the KYC process with essential documents such as a PAN card, bank statement, address proof, passport and a recent photograph.

Taxation Considerations: A Quick Look

Remember that investments in India as an NRI come with certain tax implications that you must carefully evaluate. Let’s take a quick look at certain tax considerations:

Double Taxation Avoidance Agreement

The DTAA is a treaty signed between countries to protect their citizens from double taxation arising from businesses or investments in their home country and the country where they generate income. So, make sure to check whether India has signed the DTAA with your country or not.

Tax-Free Investments

Amongst others, the interest earned on deposits made in the non-resident external or NRE account and foreign currency non-resident or FCNR account is tax-free in India.

Wrapping Up

Whether it is to fulfil short-term goals or create a sizeable corpus for long-term needs like a peaceful retirement life or children’s education, NRIs can now explore the Indian market to make impressive returns. What makes India’s market even more appealing is that it provides a blend of investment baskets featuring assets with both steady returns and quick returns.

The goal should be to make smart investments after carefully analysing all the available options. Jio Insurance Broking brings impressive investment options under one platform.