Making money through investments while living abroad might be a challenge to figure out. As an NRI, you would not only want your savings to be financially secure but also to deliver a decent return in your home country. India is among the leading economies that have been growing rapidly in the last couple of years. This is one of the many reasons why it is a highly suited place to invest your funds. Similarly, if you wish to make a small monthly contribution for the investment or make a one-time heavy investment, you will definitely receive excellent investment options here.

To choose the best NRI investment plans for you, factors such as your objectives, level of risk tolerance, and investment lock-in period come into play. In this article, we will discuss the safest and most convenient ways of capital growth in India.

Why Are One-Time Investments The Best Option?

At a certain point in time, you may find a lump sum amount of money sitting in your bank account. This could be in the form of a yearly bonus, proceeds from the sale of property, or just accumulated savings. Instead of letting it lie wasted, you may consider using it as a one-time investment plan.

By doing a one time investment plan, you decide to contribute a large sum of money to an asset only once. After that, you just relax and allow the investment to grow over the years. This idea fits perfectly for those who are very busy and do not want the hassle of monthly payments. It also helps you to get higher returns since the whole amount starts working for you from day one.

Bank Fixed Deposits-A Safe and Simple Way

For many years, fixed deposit has been the most popular option among Indian families. If you are averse to risk and want to play it safe, this is the right option for you. You hand over a certain amount of money to the bank for a given period, and they pay you a fixed amount as interest. For an NRI, the main types of bank accounts from which s/he can select are as follows:

• NRE Fixed Deposits: This is the most suitable option when you want to remit your foreign income to India. The greatest advantage is that the interest you earn on such deposits is totally exempt from tax in India! Besides, you may also transfer the principal as well as the interest back to your foreign country at any time.

• NRO Fixed Deposits: This type of account is for you if you get your income from India, e.g., rent from a property or dividends from shares. The interest in this case will be subject to tax.

• FCNR Deposits: If you are apprehensive about the Indian Rupee depreciating, this is the kind of account you should opt for. You are allowed to save your money in foreign currencies like US Dollars or British Pounds. This will protect your money from the fluctuations in the exchange rate.

High Growth: Mutual Funds

Mutual funds are an apt vehicle if your aim is to outpace inflation and generate higher earnings. A mutual fund collects money from a large number of people and invests the aggregate amount in the stock market. This way, you benefit from the expertise of the professional fund managers who do the trading for you, and you don’t have to know the stock market inside out.

Mutual funds can be used as a one time investment also. By investing a lump sum into a balanced fund, you will see your assets grow over five to ten years. Equity funds are the best option in the long run if you want to invest in top Indian companies that offer high returns. Debt funds concentrate on investing in corporate or government bonds, which are considered to be a safer option in terms of less risk.

Solid Assets: Real Estate

Owning land or a house in India is a cherished dream for many NRIs. Real estate is a conventional investment plan that can reap twofold benefits over a period. Firstly, the value of the property appreciates, leading to the increase of your wealth. Secondly, you can lease it out to earn a regular rental income.

India’s urban centers are expanding at a rapid pace, which is resulting in a large demand for housing as well as office spaces. It is quite simple for you to invest in either residential or commercial properties. However, always keep in mind that the law prohibits NRIs from purchasing farm land or plantations in India.

Smart Protection: Unit Linked Insurance Plans (ULIPs)

ULIPs are a kind of financial instruments that combine two advantages into one. When you invest in a ULIP, a portion of your investment is used to provide you with a life insurance cover. This ensures that your family is taken care of financially in case of an unfortunate event.

The rest of your money in the ULIP is invested in the market to increase your wealth. Many ULIPs offer the flexibility of paying the full premium amount upfront only once. In such cases, they become a highly secure, tax-efficient, and one time investment plan for the future.

Peace of Mind: National Pension System (NPS)

If securing your old age is your number one priority, then the National Pension System should definitely be on your radar. NPS is a government-backed scheme and is open to any Indian citizen, who can also be a non-resident Indian, exchanging between the ages of 18 and 70 years.

The contributions made by the subscribers are invested in a judicious mix of equity and safer bonds, thereby creating a large corpus for the subscriber. On retirement, a major part of the corpus can be withdrawn tax-free, and the remaining portion would be paid to the subscriber as a monthly annuity for life.

How to Begin Your Investment Journey

It is quite easy to start. The first step is to open an NRE or NRO bank account in India. Once you have your bank account, you just need to link it with the online mutual fund, insurance, or stock trading accounts.

Have a clear picture of what you want before you finalize your choice. If you want the safest option, go with bank deposits. If you want your money to grow significantly and you can withstand the market fluctuations, go for mutual funds. By investing in the best nri investment plans, you can create a bright and secure future for yourself and those you love back home.

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