A NRI has various options for investment in India and they can earn excellent returns on it. The infrastructure in India is growing by leaps and bounds, making it the ideal time and place to make investment.
Company Debentures and Shares
Through the Portfolio Investment Scheme(PIS), NRIs can make investments in non-convertible debentures and shares of various companies in India. Once a PIS account is opened, shares and debentures can be sold or bought at stock exchanges in the country.
Investing in mutual funds is a great option for any NRI. However, these investments can be made by NRIs only under NRI, NRO or FCNR accounts.
It has become one of the most preferred investment options for NRIs. The norms for NRI investment in real estate have become simplified which is the prime reason that more & more NRIs are looking to invest in the industry.
Investing in bank fixed deposits is another great option for NRIs. If you are looking to gain repatriation benefits, you will need to invest for a minimum for a minimum of three years.
Bonds and Government Securities
If you are looking to make an investment in India, you can opt for investments in government bonds and securities.If you have bought your investment from NRE or FCNR account, you can get repatriation benefits for your maturity proceeds. This type of investment needs to be done for at least three years.
Since NRI investments are subject to the rules and regulations of foreign exchange, you will need to seek the help of a professional to help you make the right investment.
There are certain investment classes that are completely sealed off for NRIs by the regulator. These include investments in Public Provident Fund and post-office saving schemes. From RBI’s document on – ‘Facilities available to NRI for investment in India’, it is further clear that even on a non-repatriation basis investments are not allowed in bearer securities (that includes Kisan Vikas Patrika).