With the current globalised era, Non-Resident Indians (NRIs) are increasingly interested in investing in India, their homeland. With its growing economy, booming stock market, and ample investment opportunities, India offers an enormous range of options for NRIs to invest in and build their future. This article will introduce some of the best NRI investment schemes for those looking for one-time investment plans. All such investments enrich you and give you the sense of satisfaction of helping India become more powerful.
Before jumping into the details of NRI investment plans, let's first know why India has emerged as a prime destination for investment. India is one of the largest economies in the world with a booming middle class, and growing tech industry, and expanding infrastructure development. The government has launched various initiatives to lure foreign investments, and NRIs are eligible to take advantage of these beneficial policies.
For NRIs, investment in India is made simple due to the ease in repayment of funds as well as an abundance of financing options. Choices include mutual fund, stock, property, or fixed deposit, each with a high degree of varying risk and yield. The alternative is to choose the right mode of investment depending on one's investment against one's objective.
One of the best and high-gain investments for NRIs is investing in Indian equities. Since the Indian stock market is developing step by step, long-term investment in stock always yields good returns. You can also make a onetime investment as well in stick markets. NRIs can invest in equities through the Portfolio Investment Scheme (PIS) and invest in shares and debentures of Indian companies.
Why invest in equities?
Investments in equity are, however, riskier than the others, and serious research or the advice of a financial planner should be sought before such investments are made.
Property has been a favourite investment channel for NRIs who want to invest in India once in their lifetime. Urbanisation and the development of infrastructure in India are booming, and this provides a solid market for investing in real estate. Residential or commercial property, India offers diversified options for NRIs.
Why invest in real estate?
Real estate, though, is an investment based on capital, and buying and holding property can be complicated. Admittedly, for NRIs who want to invest a lump sum, real estate remains one of the best choices.
For those NRIs wishing to have a low-risk, secure investment, Fixed Deposits (FDs) would prove to be ideal. Indian banks offer attractive interest rates for FDs, especially for NRIs. Through the investment in FDs, the investors can retain their investments fixed for a fixed duration, for which they receive interest over a period of time.
Why opt for FDs?
FDs are best for those looking for a conservative lump sum investment with guaranteed returns. The returns are, however, typically lower than that of equity investing or property investing.
Mutual funds are also a suitable investment vehicle for NRIs. They are diversified in the sense that they raise money from a large number of investors and invest in a range of securities. Mutual funds are suitable for NRIs who want to invest short-term and long-term.
Why invest in mutual funds?
For NRIs, it is simple to invest in mutual funds through a lump sum single payment or a Systematic Investment Plan (SIP). Even though equity mutual funds provide higher returns, debt funds are safer and provide regular returns.
National Pension Scheme (NPS) is a retirement scheme launched by the Government of India on a long-term basis. Though meant to be a retirement pension, it can also prove to be a very good one-time investment option for NRIs to secure their own financial future.
Why invest in NPS?
The NPS is a great choice to accumulate a retirement corpus and offers a good return in the long term. NRIs can invest in NPS through a one-time lump sum, which will compound every year thereafter.
Gold is still the investment with a safe-haven attraction in times of economic slump. If a one-time investment is required on behalf of NRIs, gold can be an appropriate investment. Gold can be invested in India in different forms like physical gold, gold ETFs, and sovereign gold bonds.
Why invest in gold?
Gold is the perfect option for NRIs to invest their money and avoid the dangers of the share market.
Debentures and bonds are fixed-income instruments that give interest periodically and return the principal at maturity. Government or company bonds can be a good choice for an NRI looking for a low-risk, regular investment.
Why invest in debentures and bonds?
A single investment may yield regular income without exposing the investor to excess market risks.
NRIs have several investment options available in India, and one must select the best one based on their investment goal, risk-bearing capacity, and time horizon. Be it equity investment, property or fixed deposits, numerous one-time investment options can assist you in creating your wealth over the long term. Talk about NRI investment schemes and one time investment plans, and you would realise the country's myriad of financial products have something in store for each one to sample.
By proper study and prudent choices, the options available can be availed of by the NRIs to create a strong financial future for themselves and their relatives, gaining in the process also to propel India's prosperity and growth.