5 Best NRI Plans in India
Foreign exchange in any country is always a sign of good economic growth. And when the country is not a citizen of the country to choose the government in it, even better. India has made clear progress on all these counts – economic progress over the past few decades has attracted Foreign Direct Investment (FDI) from all quarters, even from Non-Resident Indians (NRIs). In order to further strengthen the NRI community, Govt. of India has also opened up several opportunities to earn money in their country. Let’s take a look at the best investment plans for NRIs in India that promise high returns.
5 Best Investment Plans for NRIs in India
Here are the best ways to earn money if you are an NRI and want to invest your earnings in your home country:
- National Pension Scheme – This is the best investment plan for NRI investors, because of the government-backed guarantee. The National Pension Scheme or NPS allows NRI investors between the ages of 18 and 60 to invest in either equity or debt or both. NRIs can open two types of accounts in India and invest in the scheme, Non-Resident Ordinary (NRO) Account and Non-Resident External (NRE) Account. The seller must make a photocopy of their PAN card and Aadhar card to open their accounts.
- Mutual Funds – One of the most popular NRI plans in India that does not promise health returns and ensures tax benefits. However, India investment plans for NRI investors only allow investment in India. They can be created through both NRO and NRE accounts, as is the case with NPS. Attracting young and novice NRI investors, Systematic Investment Plan or SIP allows for systematic or less frequent investments. This helps in creating financial strategies among the investors and ensures good returns at all times.
- Unit Linked Insurance Plans – Called as ULIP, these plans are also popular among the NRI audience as they combine the best of both worlds – cash and insurance. In this way, the investor can expect to get more money and secure the future of their loved ones through insurance. Part of the money under ULIP plans goes towards life insurance while the rest can be used to invest in mutual funds and loans to meet repayments.
- Fixed Income – The most popular and best investment scheme in India, Fixed Deposit schemes have become popular among Indian investors and NRIs alike. For the latter, they can use NRO or NRE accounts in India to invest in FDs or open an FCNR account if they want to invest their foreign earnings in India. The best thing about investing in FD is that it is not affected by market fluctuations. This is why they are one of the popular short-term plans for NRI investors.
- Equity Funding – If you are looking for a one-time investment plan in India, then your search ends here. The Reserve Bank of India allows NRI investors to invest their money in the Indian stock market under the RBI’s Portfolio Investment Scheme. NRIs can use NRE and NRO bank accounts to make investments in equity funds. In addition, they can also open a Demat Account, or a Trading Account to make money easily in the Indian market.
Also Know: Things to Consider for NRIs Before Buying Life Insurance in India
Why Investment in India is a Good Option for NRIs
Whether or not you’re still considering investing your hard-earned money in the Indian stock market, here are some reasons why investing locally is a good idea:
- It gives you a healthy return on your investment, considering that India is growing slowly in terms of economic development. Any amount invested at this time in the Indian stock market is guaranteed to reap profits.
- You can expect to build wealth for your family and yourself. Selling real estate in India, for example, brings wealth to NRIs through rent. It can also be used as collateral if you are applying for a home loan.
- You can expect to secure your family’s future back home in India as this money can be used in case of unexpected financial problems.
- Creating any type of additional wealth in the form of cash helps you rest easy. Make sure you have enough money, not only abroad but also in your own country, to live the life you can imagine in retirement.
Before investing your money in the Indian stock market, make sure you check the best investment plan for NRIs and read all the necessary steps to make a safe and informed decision.
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