Envisioning and eventually fulfilling the dream of relocating to a foreign country for work is certainly an experience that’s worth cherishing. While it takes a lot of effort to even procure an opportunity of working and residing abroad, individuals need to plan out the existing life goals and rewarding investment opportunities for securing their future. Therefore, an NRI or rather Non-Resident Indian needs to keep a close eye on the best possible investment opportunities synonymous to the Indian contingent as the savings rate out here is certainly one of the highest.
Moreover, the Indian economic framework is developing rapidly; thereby attracting global investments. Lastly, for NRIs investing in India-specific plans, it’s also about emotional gratification that allows the home nation to develop and grow further, financially.
In the subsequent sections, we shall talk about the possible investment opportunities best suitable for individuals who have relocated to a foreign country:
1. Put Money in Direct Stocks and Equities
Investing directly in Indian stocks is still possible for an NRI provided he or she has a PIS account in place which is linked to the concerned NRE or NRO savings account. While NRIs are only allowed one PIS account, the RBI even puts certain restrictions on the number of acquired stocks pertaining to a single organisation. Moreover, NRIs must take note of the fact that intraday trading isn’t allowed, and the profits are taxable as well. Despite all these intricacies, direct stocks and equities are great money-making options, if trading is strategically executed.
2. Invest in Real-Estate
For NRIs, it is still possible to invest in real-estate; precisely residential and even commercial properties. It must be noted that although it isn’t possible for the NRIs to invest directly in farmlands and agricultural properties, they can acquire the same as a form of gift or even inheritance. In any case of real-estate investment, the proceeds need to be deposited in the concerned NRO account which is subject to repatriation restrictions.
3. Make Room for Life Insurance Policies, Preferably ULIPs
While it’s advisable to invest in life insurance schemes, an NRI must specifically focus on ULIPs. The Unit Linked Insurance Plan is a great way to invest as the insurer puts the money in diversified funds according to the investor’s preference and the remaining amount is used as the insurance cover. NRIs investing in ULIPs must hold an Indian passport and should have a parent or even a grandparent who is an Indian citizen. In addition to that, the investor must also keep a close eye on the taxation schemes depending on maturity, accumulation, and the investment stage.
4. Invest in Government Bonds and Securities
Another aspect of investing in India is to directly or indirectly fund the government-initiated schemes. Investing in bonds, therefore, is a great option, and the concerned individual is then considered a lender with additional benefits. Fixed returns are assured, and the proceeds are reflected onto the FCNR or NRE accounts.
5. NPS or National Pension Schemes
This investment opportunity is for NRIs who have relocated but still have the Indian citizenship. NPS offers a wide range of investment options to choose from, including fixed income policies and even equity-specific investments. Unlike some of the other investment options, NPS Tier I accounts cannot be withdrawn from and are essentially invested in for the longer haul.
6. Consider Term Insurance
Not every investment is made for generating profits, and some are specifically considered for securing the financial future of the loved ones. In order to secure the diverse financial aspects of the family, a person relocating to a foreign country for work must certainly invest in the best term life insurance plan to secure his/her spouse, children or parents. Term plans perfectly fit the puzzle as far as providing a financial safety net to one’s family is concerned. Moreover, term plans today come with many benefits, not only for the residents but also for NRIs. Insurers like Max Life Insurance offer unique features like lumpsum payment, monthly income benefit, rider facility, and life stage benefit to enhance insurance cover.
These are some of the more rewarding investment opportunities for NRIs which need to be considered for availing financial security. Thus, NRIs have not only the option to invest in the best short-term investment plans but also long-term plans like ULIPs and term insurance. While some of the policies require Indian citizenship, a majority of the mentioned ideas offer decent returns and even additional benefits to the Non-Resident Indians.
