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Non-Resident Indians (NRIs) have access to a variety of investment alternatives in India, but it can be challenging to identify the best ones. Finding the perfect investment choice that offers NRIs complete financial stability and respectable profits is crucial in this situation. While some NRIs invest to build up a fund for their family back home or get ready to return to India themselves eventually, others do so to increase their returns by making investments in a rapidly rising economy.
Mutual Funds
Mutual Funds When seeking long-term investments are always recommended. Mutual Funds provide a variety of investing possibilities, from debt to equity, and strategically designed plans can produce profitable results. An NRI needs an NRE or NRO account in order to invest in a mutual fund because they can only use Indian rupees.
Unit Linked Insurance Plan (ULIP)
ULIPs typically have a five-year lock-in period and combine the advantages of insurance and investing. However, under Sections 80C and 10(10D) of the Income Tax Act of 1916, the premiums paid for ULIPs are deductible.
National Pension System (NPS)
Only if settling in India after retirement is a primary objective, is NPS advised as an investment. Government securities are low risk investments that are supported by the Indian government. Government bonds are marketable instruments, and as such, the market’s prices are subject to change based on several circumstances..
Real Estate
Investments in real estate have historically been appealing and fruitful. More approachable instruments, such REITs and fractional ownership, which have opened up the market to regular investors, have given the CRE sector a significant boost. Additionally, CRE offers a larger rental income than homes do.
A commercial property’s rental yield, which ranges from 8 to 10 percent annually, is higher than that of a residential property. Therefore, a 25 lakh rupee investment in fractional ownership has the potential to generate 2.25 lakh rupees in rental revenue every year. As a result, wealth steadily increases and monthly liquidity improves..
Government Securities
Government Securities, often known as G-Secs, are low-risk investment alternatives because the Indian government backs them. Treasury bills or bonds with maturities ranging from a few days to several years are used to issue them. These bonds may have interest rates that are either fixed or variable, depending on movements in the market.
