This article provides information on the various NRI investment options in India. It majorly highlights the best NRI investment options in India especially for 2013. Further, you can also understand the major challenges NRIs will face while they purchase gold in India. So first, let’s begin with the best NRI investment options in India.
The Best NRI Investment Options in India for 2014
A non-resident Indian should first, clarify the reasons as to why he wants to invest in India. It can be because of some commitments like home loan’s equated monthly installments (EMI) or parental responsibility. There can be other reasons as well. Someone may just want to simply raise his assets. This can be because of the emotional aspect called home bias. This means that irrespective of any part of the world, an NRI would want to invest again and again in his country & invariably skew his portfolio in the end. So let’s see how an NRI can use various investment options like NRE deposits, FCNR deposits or Mutual Funds to get good returns.
Go for NRE Account Fixed Deposit or FCNR Fixed Deposit
If the objective is commitments, then the respective NRI should consider options like NRE – Non Resident External Account fixed deposit or FCNR- Foreign Currency Non Resident fixed deposit. The NRI will also get benefits like repatriability & tax benefits with these schemes.
Invest in Equity Mutual Funds
The other objective can be to grow your assets. If one wants to aim at equity markets, it is advisable to invest in equity mutual funds. However, remember to invest in those funds which are domiciled outside India. This prevents one to bring back all the money into the country & adhere to their laws. You can choose from loads of offshore funds, which are domiciled in various parts of the world. These funds are legitimate & favor repatriation of money into India.
In this way, NRIs would get returns of Indian market without the need to adhere to Indian regulations. Hence, it depends on why one wants to bring in the money & what is the sole purpose behind the same.
Invest in Asset Class like Debt Funds
Other variables include options like investments in asset class like debt funds. Debt funds can be equity, gold & real estate. Offshore route is most recommended as benefits like repatriability & tax implications will make an NRI’s life easy.
Two Scenarios that Explain How an NRI can make Investment in Gold
Consider an NRI who resides in Gulf. Let us assume that he may want to purchase gold in his country for two reasons-
- From an investment perspective
- His daughter’s marriage.
Now let’s have a look at both the cases one by one:
- If it’s from an investment perspective, the NRI would want to purchase gold into the country that he resides in. In this way liquidity becomes easy.
- It can be purely for a requirement in India like daughter’s marriage. In this case, you have to follow the regulations of the place you reside. For instance, in Union Budget, people’s baggage gold allowance for Gulf residents has been enhanced. Hence, it depends in which part of the world you reside in & what is the sole purpose.
These were some of the best NRI investment options in India you can go for. You can choose one of these options or all of the options for good investment returns.