Experts Suggest These Investments Options for NRIs Wanting to Invest in India
If you are looking for investment options for NRIs in India, then you are making a strategic financial move. Investing across geographies and asset classes is crucial for a well-diversified and solid investment portfolio. Here are some of the top NRI investment options as recommended by experts:
- Real estate
With the Indian real estate market recovering well after the pandemic, real estate makes for a good investment for NRIs in India. You can benefit from investing in real estate in India in two ways. First, you can get rental income regularly and second you can earn capital gains from the appreciation of your property value in the long term. Another thing to note is that the regulatory framework in the country for real estate is stronger than ever before and the rupee is at its weakest against major currencies such as the dollar. Hence, on all these fronts, real estate is one of the best NRI investment options right now.
- Stock market
No matter where you are currently residing, having an investment portfolio that is diversified across geographies is crucial. This is because the stock markets of different countries are not synced and don’t react to the same macroeconomic and microeconomic trends in the same manner. Hence, by investing in the Indian stock market, you are structuring your portfolio to better deal with market risks and protect your returns.
- Mutual funds
If you want to invest in the stock market in India but are not too comfortable directly investing in stocks either because you are not aware of market trends or cannot track them, opting for mutual funds is a great option. Mutual funds for NRIs work because you have an expert fund manager making all the buy and sell decisions and this helps you capitalise on the Indian market. Mutual funds also help you diversify better and hedge risk. This is why a lot of NRIs invest in mutual funds in India.
- National pension system
This is a government-backed social security scheme that helps you to save for your retirement. As an NRI investment option, this works well on multiple levels. Firstly, if you earn income in India through your other investments and have to pay tax, this national pension scheme can work as a tax-saving tool. Secondly, it allows you to choose how you want to allocate your funds across equity, government securities, corporate bonds, and alternative investments according to your risk tolerance and financial goals. Hence, when undertaking investment management, do consider the national pension scheme.
Investments for NRIs in India can be made a lot more convenient if you seek investment management services. With experts looking after your investments in the country, you can rest assured that your portfolio is aligning with your goals. Whether you are looking at mutual funds for NRIs or for real estate investments, an investment management expert can be of great help.