NRI – Plan Your Investments Wisely

NRI can invest by way of capital contribution, they can invest in shares, debentures and mutual fund. A large number of NRIs are encouraged to invest in stock market, mutual funds, Certificate of deposits and other fixed deposits. Investment in insurance is also a good idea to safeguard your parents and wife at home.

Real estate is a lucrative business. It is supposed to have a better appreciation value. More and more NRIs are allured towards Indian real estate market. Hence, there is a need to open up FCNR and NRE accounts. Open an NRE account if you want to transfer your profits abroad. NRE accounts have better interest rate than Non Resident Ordinary account. Your parents or spouse can access the same account wherein you can save your rental income, profits earned through mutual funds, shares and debentures etc.

If you are planning to invest in Certificate of Deposit, then you must open an FCNR account. Foreign Currency Non Resident account is also held on repatriation basis. Wait until your certificate of deposit matures, 6 months to five years. If you can’t wait for a longer period, you can opt for a shorter period of 6 months when you sign up for it. Lock in your amount as long as you want it. Some banks would want you to have a minimum balance of 10,000. You can opt for a zero balance bank account too.

Reap better interest rate on Non Resident External account. NRIs are allowed to open up fixed deposits and certificate of deposits, however there are exceptions to this. If you are planning to invest in mutual funds, be aware that these are subject to market risks. Plan your investments wisely and get started!

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