Cash-rich Indians settled abroad have various investment opportunities. Explore these avenues below to make a good investment decision.
An attractive lifestyle, comfortable work environment and an unmatched educational competence create a magnetic pull on the Indian people to settle in Australia. While Australia gets skilled workforce this way, the Indians get a great opportunity to earn and live a more-than-decent living. But like any prudent person, a migrant too should safeguard his/her financial interests back in their home country. Clear financial goals and wisely picked investment vehicles will allow the NRIs to create a healthy corpus for retirement and enjoy great financial security. By building financial assets in India, the relatives back home also enjoy benefits of better financial health and stability.
Best investments in India
A host of investment opportunities beckon cash-rich Indians who have settled in Australia. Listed below are lucrative investment opportunities to convert the foreign currency into Indian assets and investments.
- Bank Deposits: Bank deposits are the simplest and the easiest method of investing in India. By investing in Fixed Deposits, NRIs can accumulate a substantial corpus without worrying about losing the principal. You can choose between NRE (Non-Resident External Accounts), NRO (Non-Resident Ordinary Accounts) or FCNR (Foreign Currency Non-Resident) accounts, depending upon the requirements of repatriation option and hedging against exchange-rate fluctuation.
- Mutual funds: India is fast developing into a global economy. Investors from across the globe have an option to invest in the growing economy and make it big financially. With primary requirement of an NRE/NRO or FCNR account, any NRI can invest in the equity or debt market in India.
- Real estate: The property rates in India have witnessed a sharp rise in recent years. And with numerous residential and commercial projects coming up, owning a real estate in India is bound to give you financial appreciation and emotional security. However, one needs to follow the regulations of the FEMA (Foreign Exchange Management Act) for sale/purchase of property.
- Bonds: Indian companies are on an expansion mode and issue bonds from time to time to meet their investment needs. NRIs too can invest in the Indian stock market. Understanding of the Portfolio Investment Scheme (PIS) of the Reserve Bank of India (RBI) is mandatory. Invest wisely and maintain two separate DEMAT Accounts for repatriable and non-repatriable shares.
- Gold: Investing in gold is a traditional, and therefore acceptable, investment avenue. Easy purchase, storage and subsequent sale of the metal make it the most preferred mode. However, illegal smuggling of the metal to and fro the country is an offence, and one should understand the legal route and regulations before investing in the same. One can choose between jewellery, gold bars, gold coins or gold deposit schemes floated by Indian banks.
It is important to make prudent investment decisions that adhere to the law of the land. Consider the tax regulations, repatriation schemes and understand your NRI status before investing offshore.