Indian banks allow NRIs to open up FCNR and NRE accounts. Among the non resident Indian bank accounts Non resident External and Foreign Currency Non resident accounts are the popular ones as these are held on a repatriation basis. Hence, an NRI enjoys his income earned through Indian funds and certifications staying abroad.
When you have surplus funds, you can make use of mutual funds and invest in them. You can consider investing in mutual funds to build your portfolio. Take adequate care before you invest in the stock market. Invest in a company which performs well and has a good track record. Always remember to read the terms and conditions of the policy before you invest in them. As shares and mutual funds are subject to market risks they can fluctuate.
Besides this, certificate of deposits will fetch you better returns. Have them locked in for a longer period to enjoy better returns. If you withdraw it prematurely, you will incur a loss. Interest accumulated will be low or your amount locked in will be paid out to you after the deduction. You must wait for the certificate deposit to mature. There is no risk involved as these are not subject to market risks.
Consider investing in fixed deposits, PSEs, savings funds and other tax funds. You don’t just earn profits but also enjoy tax free income. Your profits earned through mutual funds, shares and debentures are saved in the FCNR or NRE accounts. These accounts offer you tax free liability make the best use of it.