Five Investment options for NRIs in India

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 Here are most preferred investment options for NRIs.

 

1.   Bank deposits. NRIs can invest in Bank accounts. It is illegal for an NRI to have savings bank account and it should be converted to NRO account. There are three types of bank accounts for NRIs:-

 

·        Non-Resident (External) Rupee Account Scheme (NRE Account);

·        Non-Resident Ordinary Rupee Account (NRO Account); and

·        Foreign Currency (Non-Resident) Account (Banks) Scheme (FCNR Account).




2.   Equity investments. NRIs need to open an an account under the portfolio investment scheme(PIS) on either repatriation or non-repatriation basis.




3.   Mutual funds. There is no restriction on NRIs for investing in Mutual funds. They can invest in debt and equity Mutual funds. NRIs from USA and Canada have certain restrictions and can only buy a select few Mutual fund schemes

 



4.   Real Estate investments. Investing in Real estate provides dual benefit of rental income and capital appreciation. Till a few years back, it was the most favorite investment option.

 



5.   Public Provident Fund (PPF) and National Pension Scheme (NPS).  NRIs can invest in PPF accounts and NPS in India. It is not a preferred route of investment and should be considered only, if one is considering settling in India after retirement.




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