Categories: Banking & Finance

Top Investment Plans for an NRI in 2023-24

NRIs often choose to invest in their home nations or foreign countries due to a broad range of reasons. In order to meet their best interests in personal and professional life, they aim to drill down to the smartest investment options. If you are in a similar situation, you must be looking for choices that will leverage them with a generous return, and they can avoid going through a long-term hassle regarding the investment. 

An NRI possesses all the liberty to invest in government securities and bonds. One can attain fixed returns on particular bonds. In case an investment is performed via FCNR or NRE accounts, the returns are easily eligible to be sent to the country where they are based. However, there are several risks and marketing gimmicks related to the art of investment as an NRI. Therefore, it is imperative to consider your profile of specific goals and pick the best investment plans in India. 

The Direct Equity Investment Plan

As an NRI, you can easily invest in the stock market of India. The first step to do this is to introduce a portfolio investment plan, which is usually referred to as the PIS bank account. You can link up your PIS account with a Demat bank account. One can open this with any reputed Indian stockbroker. In India’s stock market, returns tend to upscale with the rolling of time. 

However, the seeking benefits of the increase in return are only possible with undergoing slight uncertainty. Equity-based investments can contribute to the generation of long-term wealth and avoid inflation.

Since the risks are higher compared to PPFs and fixed deposits, one needs to make knowledgeable decisions. If you can sell the investment within a span of one year after your purchase, the tax value will be 15%. Alternatively, if the time exceeds more than a year, the value will sum up to 10%. As an NRI, you can introduce a trading banking account without day trading. You can only invest in stocks that you have already received. 

Investing In Real Estate as an NRI

Many economic researchers suggest real estate as a wise investment option for NRI’s. The primary reason includes the highly convenient government policies and significant income prospects. Immovable property is also a comparatively safer form of investment than that of others for NRI’s. The current Indian real estate property worth has been increasing rapidly since the pandemic. 

NRIs can now utilize any of the mentioned banking accounts to efficiently invest in the Indian real estate industry:

  • NRO banking account
  • FCNR banking account
  • NRE banking account

Life Insurance Investment

In general, life insurance is a contract between an insured candidate and an insurance agency. These policies offer promising economic surety to the nominated candidates in the contract in exchange for premiums. The regular premiums need to be paid by the holder of the policy. 

However, life insurance, in its progressive and advanced form, has become a prevalent choice for NRI investors. They are significantly investing in Indian life insurance policies even though they are dwelling abroad temporarily. However, such schemes of insurance are entitled to the regulations of the IRDAI and the Act of Exchange Management.

NRI Term Plans

An appropriate plan of security for NRI, often called the term insurance scheme, is the ideal option for insurance. These schemes require you to pay a fixed policy premium to attain insurance coverage for the time being. Such plans provide additional aid during critical ailments, disability or untimely demise. NRI candidates can apply for more advanced forms of coverage in such critical times. 

Children Insurance Schemes

Via children’s insurance schemes, NRIs can protect their children’s future after demise. These particular insurance schemes are specially designed to meet the significant life ambitions of children. Some of the examples include higher education and providing additional premium waivers to prevent children from future burdens. 

NRI-Friendly ULIPs

ULIPs are a popular form of insurance that NRIs tend to choose nowadays. The ideal part about these schemes is that they offer a blend of the advantages of investment and insurance within one policy. Hence, the dependants of the policyholders are affixed to the demise benefit. However, this is only possible if the holder of the policy dies within the policy period. 

On the contrary, if the holder of the policy survives during this time, they will attain returns solely depending on the performance of the ULIP. However, you need to note that the payable pension coming from the NPS banking account will only be received in INR. 

The Final Words

There are a range of investment plans that you will come across in the current Indian finance sector. If you are a newbie in exploring the current Indian investment plans, it is important to scrutinize every pros and cons. One needs to make sure that their unique financial expectations and goals are matching with the scheme details. Some of the top factors to consider before making an investment decision include DTAA agreements, tax benefits and financial assets.

Staff Writer

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