Investment Options for NRIs
If you are an NRI/PIO and reading this, do read through the entire post.
It is one thing to earn money and quite another to invest your money smartly into assets where it grows .
Let us have a quick look at products available in the market for NRIs.
NRE Fixed Deposit/Recurring Deposit:
NRE FD is a tax free, fully repatriable safe and secure investment option for people looking for a safe and tax free investment option.
Foreign currency non resident deposits are a great option for NRIs looking to invest their surplus foreign currency in India .Since the interest rates abroad can be quite less , these
FCNR deposits make sense as these offer safety of principal and exchange rate risk as the maturity amount is kept in foreign currency only. These are also tax free and fully repatriable.
NRO Fixed Deposits
I wouldn’t suggest you invest in NRO FD or Tax saver FD as the tax rate is 30.9% on interest earned. One had better invest in equity mutual funds via SIP or lump sum route to earn better returns and tax free returns (Long term capital gains)
These are forward cover investment products which help you enhance the returns offered by plain vanilla NRE FD/FCNR FD. Such products have a lock-in period and premature liquidation may cost you. So, therefore, understand the product well and plan for any exigency that may arise during the period of investment in these products.
Offshore Investment Options
Offshore Term Deposits
Offshore Deposits are a smart option for safe investments and competitive returns. You can choose between fixed or floating deposits. You have the option of opening the deposits in a few major currencies of the world.
Offshore Call Account
Call accounts promise orderly management, competitive rates and instant availability of funds. A zero balance account with no stipulated minimum amount to be deposited. The funds are available on call and you can withdraw the amount anytime you need to.
Invest in International bonds through Bank and avail free custodial services.
Higher yielding investment options.
Loan facility against bonds is also available.
Offshore Mutual Funds
Invest in a range of mutual funds through a common platform.
Regular Mutual Fund product offering with in built leverage.
Customised product offering
I shall soon add more investment option and a comparison of investment products offered by banks .
Thanks for stopping by!