BEST INVESTMENT OPTIONS FOR NRIs/PIOs/OCIs 

 

 

Here are the most popular and the best investment options for NRIs to allocate their money into the Indian market. Though all the listed options are quite frequently used by the NRIs, we can still try to list some of these investment options as per their popularity. Let’s check these out :

 

Bank deposits (NRE FD/NRO FD/FCNR-B) undoubtedly hold the no 1 position, when it comes to NRI investments in India. This has been the safest and the most popular way of parking their overseas earnings by the NRIs/PIOs/OCIs. Just to give a perspective, NRI Bank deposit in all the Indian banks amounts to USD 130 Billions, IT’S 1/3 of Country’s Forex Reserves which now stands at about USD 440 Billions.

 

 

Mutual Funds and Equities are also gaining popularity very fast among the NRI community as an alternative investment option, in addition to the bank deposits. The mutual funds & equities offer an opportunity to earn lucrative returns in way of regular income or capital gains, over and above the bank deposit returns. Though its’ volatile nature and capital risk sometimes adds to the NRIs’ general aversion towards variable return investments, still this segment is catching up steadily over the last few years. The lower yields in bank deposits coupled with ease of investments and increased customer awareness is driving  the growth of this segment as an asset class in the space of NRI investments in India.

 

 

Real Estate is also considered to be one of the favourite investment areas of the Global Indian community. After a brief slowdown for couple of years, real estate space seen to be gaining traction again in last few preceding years. As per the information publicly available, NRI investments in Indian real estate has doubled from $5 billion in 2014 to $10.2 billion in 2018. There could be several factors which can be attributed with the credit for this trend. For instance, the motivation for someone in the emerging affluent segment can purely be the need for his/her OWN HOME. Whereas, someone from the UHNI segment could be looking at it from a WEALTH PRESERVATION point of view. Despite the issues of illiquidity, Law & tax complexity, real estate continues to be one of the favourite asset classes for the NRI diaspora.

 

 

GOLD had been the favourite investment for all the Indians for centuries, and NRIs have also shown the same enthusiasm of his/her resident relatives and friends when it comes to the yellow metal. It’s still considered to be one of the most safest investment options available in the history of investments, leave aside its emotional & social value in a country like ours. You never have enough of this precious metal. No surprise, India’s household gold reserve is estimated to be about 25000 MTs, with the 2nd highest consumption in the world of about 850 MTs a year.

 

We will take a closer look at each of these above mentioned Favourite Investment Options of NRIs in the respective tabs.

 

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