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Investment options for NRIs in India

Non-resident Indians have several attractive investment options in India compared to other global markets. The Indian market is maturing and India’s market capitalization grew by 12.1% annually, while the global equity market value increased by 8.4% as per The article in The Economic Times dated 6th June, 2022.

Here are the 10 best options to invest in India.

  • 1. Equity: Indian market is becoming more robust as it is being considered as better investment options compared to traditional bank fixed deposits due to low interest rate. Although there were few corrections and uncertainties due to pandemic, the market proved to be robust as it bounces back. The investors must watch the market carefully if they are investing for short-term. If you want to know which stocks will perform better, research direct equity as well as holdings in mutual funds.

2. Real Estate: Current property market is still recovering after the pandemic. The current timing is best as the property prices are still low and the US dollars rate against Indian Rupees is rising.

3. As inflation is hitting the roof, it’s not wise to put your money into long-term investments just yet. Right now, short-term debt funds are the better way to invest in India in 2022

  • 3. Fixed-Income Investment – Currently short-term debt funds can be another good option to invest in India in 2022 as inflation on rise and it is difficult to speculate the growth for the long term investment.

4. Mutual Funds: For busy professionals and for the beginners having limited knowledge, Mutual Funds are safer as compared to direct equity. They are now becoming more popular among investors. Investors must research the eligibility criteria and FEMA (Foreign Exchange Management Act, 1999) rules before making any decisions as there may be restrictions applicable to NRIs. FEMA governs the NRI mutual fund investments and permits NRIs to invest in a.Direct Stocks, b. Mutual Funds c. Exchange-traded funds.

NRIs need to remember that money can be invested only in Indian Rupees ONLY.

5. National Pension Scheme: This is a government supported scheme where Non-resident Indians can also invest in equity, debts or a combination of both. The eligibility criteria is 18 years to 60 years. The investors need Aadhar card and PAN card.

There are more investment options such as Unit Linked Insurance Plans (ULIPs), Capital Guarantee Solution Plan, Child Plan etc.

For more details, you can visit the article here.

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