Good Investment Option for NRI`s


Investing money is something that all NRIs should take seriously. It not only ensures financial stability in the long run but also creates opportunities for better returns and growth. But with so many investment options available, it can be hard to decide which one will work best for you.


In this post, we’ll discuss four of the most popular investment options for NRIs: fixed deposits, mutual funds, real estate, and national pension schemes. We’ll also look at the pros and cons of each option so that you can make an informed decision about your investments.


Best Investment Options for NRIs in India


Mutual Funds

One popular option is to invest in mutual funds. Mutual funds are pools of money that are managed by professionals and invested in a variety of securities, such as stocks, bonds, and other assets.


Investing in mutual funds comes with several benefits. For one, you can diversify your portfolio and minimize risk by investing in a variety of different securities. Additionally, mutual funds offer the potential for higher returns than other investment options, such as fixed deposits or real estate.


One downside of investing in mutual funds is that you will likely have to pay fees to the fund manager. However, these fees are typically much lower than the fees charged by professional investors, such as stockbrokers.


If you’re interested in investing in mutual funds, be sure to research the various options available and choose a fund that aligns with your investment goals.


Fixed Deposits

Fixed Deposits are a type of savings account where the money deposited earns interest at a fixed rate. This makes them a safe and low-risk investment option.


Another option for NRIs is mutual funds. Mutual funds are investment vehicles that pool money from many different investors and invest it in a variety of securities, such as stocks, bonds, and short-term debt instruments. While mutual funds do come with some risk, they can offer higher returns than FDs.


For those looking for a more long-term investment, real estate may be a good option. NRIs can purchase property in India and rent it out to generate income. There is some risk involved in this option as well, but over time, the value of the property is likely to appreciate.


Finally, another option for NRIs is the National Pension Scheme (NPS). The NPS is a government-sponsored pension scheme that offers tax benefits and a regular income after retirement. It is open to all Indian citizens, including NRIs.



Real Estate

Investing in real estate is a good way to earn rental income and also get capital appreciation over the long term. However, it is important to remember that investing in real estate is a long-term commitment and you should have enough patience and resources to weather market fluctuations.


National Pension Scheme

The National Pension Scheme (NPS) is a defined contribution pension scheme launched by the Government of India in January 2004. It is a voluntary, savings-cum-insurance scheme available to all Indian citizens between the ages of 18 and 60. The scheme has two tiers – Tier I and Tier II – with different features and benefits.


Under the NPS, subscribers are required to contribute a minimum of Rs 6,000 per year (or Rs 500 per month) towards their pension account. The corpus so accumulated is invested in a mix of equity, debt, and government securities by professional fund managers appointed by the Pension Fund Regulatory and Development Authority (PFRDA).


While the Tier I account is locked in until retirement, subscribers can exit from the Tier II account at any time. On retirement, subscribers can withdraw up to 60% of their corpus as a lump sum and use the remaining 40% to buy an annuity plan that will provide them with a regular income during their post-retirement years.


The NPS offers several tax benefits as well. Contributions made to NPS qualify for deduction under Section 80C of the Income Tax Act 1961. Additionally, withdrawals from NPS are also taxed at lower rates than other investment options such as fixed deposits and mutual funds.


For NRIs, the NPS offers an attractive investment option that gives them exposure to the Indian capital markets while also providing tax benefits.


National Pension Scheme

The National Pension Scheme or NPS is a government-sponsored pension scheme available to all Indian citizens. It was introduced in January 2004 and is managed by the Pension Fund Regulatory and Development Authority (PFRDA).


The NPS offers several benefits, including;

  1. tax breaks
  2. investment flexibility
  3. And low costs. 

It is a long-term investment product that can be used to provide retirement income. Investment in the NPS can be made through three different channels – the government channel, the corporate channel, and the voluntary channel. The government channel is open to all Indian citizens, while the corporate channel is open to employees of companies that have registered with the PFRDA. The voluntary channel is open to any resident Indian citizen.


The NPS offers two investment options – the Tier I account and the Tier II account. 

  • The Tier I account is a mandatory account that offers limited withdrawal and investment options. 
  • The Tier II account is a voluntary account that offers more flexible withdrawal and investment options. Investments in the NPS are made through a mix of equity, debt, and government securities.

The NPS has been designed as a long-term investment product. The minimum tenure for investments in the NPS is 10 years. However, partial withdrawals are allowed after 5 years for certain purposes such as higher education or medical emergencies. Withdrawals from the NPS are taxed at source.


Which investment option is right for you will depend on your financial situation and goals. Speak with a financial advisor to learn more about the different options available and which one may be right for you.