Top 6 Investment Plans for NRI

In today’s time, doing the right kind of investment is the best way to stay secure in the long run. It is through investment in different financial products that help an individual in multiplying their wealth as well as meeting all their needs without any compromise. So, be it an Indian resident or NRI, investment is the first thing that all of us should think about. Now, to help the non-residents of India or NRIs, the Indian government has also come up with several investment plans that can help them diversify their investment portfolio. So, in today’s blog, let us walk you through some of the top investment plans for NRI.

Top Investment Plans for NRI

Listed below are some of the investment plans for NRI that you can consider investing in:

• Fixed Deposits

Bank fixed deposits or FD is one of the best investment options when it comes to investment plans for NRI. The NRIs can invest their money in different types of accounts such as Non-Resident External Account or NRE account, Non-Resident Ordinary Account or NRO account, and Foreign Currency Non-Resident Account or FCNR account.

1. NRE Fixed Deposit: The NRE Fixed Deposit is one where you will deposit your investment in a foreign currency which will be converted into Indian rupees.
2. NRO Fixed Deposit: This is a type of fixed deposit where the income generated in Indian rupees will be used for fixed deposits. The income generated in Indian rupees can be in any form house rents, pensions, or others. However, it is important to understand that there is interest attached with NRO fixed deposits.
3. FCNR Account: On the other hand there is an FCNR account that lets individuals invest in foreign currency in India. The interest rates for FCNR accounts depend on the foreign currency you are investing in. 

• ULIPs

ULIPs or what stands for Unit Linked Insurance plans are the ones that offer benefits of both insurance and investment. Yes, you have got us right, with Unit Linked Insurance Plans, you can enjoy the benefits of both life insurance coverage and investment. With ULIP plans, a part of the funds is used for life insurance coverage and the remaining is used for investment. For investment, individuals can invest in a fund of their choice and based on the market performance of the funds, reap the benefits of the invested funds. So, Indian nationals residing in a foreign country can consider investing in ULIP plans. 

• NPS

National Pension Scheme or NPS is another popular investment scheme that NRIs can consider investing in. NPS is a type of pension plan that helps individuals in creating wealth to lead their second innings of life peacefully. To invest in NPS being a NRI, all you need to have is a PAN card, aadhaar card, and details of your NRE account. The minimum age criteria for opening an NPS account is 18 years and the maximum age limit is 60 years. There are many other pension plans that you can consider investing in and that will help you get great returns in the long run.

• Public Provident Fund

Public Provident Fund or a PPF account is another type of pension account that considers can plan to invest in. As the Public Provident Fund is backed by the Indian government, it is one of the safest investment schemes. The Public Provident Fund can be opened by anyone who is a resident of India or NRIs who have valid identification proof of India. With a PPF account, there is a tax liability of Rs. 1.5 lakhs which are available under section 80C of the Income Tax Act of 1961.

• Mutual Funds

Mutual funds are one of the best investment strategies to enjoy greater returns in the long run. A mutual fund is most suggested for those who have a higher risk appetite. This is because the returns generated out of mutual funds are dependent on the market performance of the funds. NRIs can invest in mutual funds through Non-Resident Ordinary Account or Non-Resident External Account. Moreover, it is crucial to understand that the returns generated out of mutual funds are also dependent on the type of fund you have invested in.

• Real Estates

Real estate is another type of investment that NRIs can easily invest in. Investment in real estate means NRIs can buy property or land in India. They can use this property to generate income through rent. Real estate is a good investment choice for both long-term and short-term investors. There are comparatively lesser risks involved in real estate.

Take Away

Thus, if you are an NRI and are looking for the top investment plans then the above-mentioned plans can be extremely helpful. You can also explore many more investment plans on InsuranceDekho website. 

Also Read: 

What Is Section 80DDB and Who Is Eligible For Tax Exemption