Investment Tips for Newbie NRI Investors in India

Investment Tips for Newbie NRI Investors in India

As a newbie investor from overseas, you have seen your parents talk about the economic growth of your country and the potential to maximise investments when compared to your country of stay and work. While you are able to earn lucratively in your chosen country of the profession, most developed countries in the world are undergoing a recession with interest rates lower than that of India. With large private equity and venture capital firms like Blackstone, KKR and Softbank investing in India at an increasing rate, it is no surprise that Indian companies are on a growth trajectory. Thus, the corporate boom is contributing to more liquidity in the country.

Newbie Nri Investors In India
Newbie Nri Investors In India

 Seeking Out Opportunities

Ideal NRI investment should strike the right balance between risk and returns. NRIs should seek out other investments which are lucrative and high interest earning given the current interest rate scenarios.  Here are some tips for newbie NRI investors looking to invest in India:

Mutual Funds – Mutual funds are one of the most tempting and most advertised investment options. But for NRIs, it is important to evaluate the mutual funds as per risk appetite, liabilities in your work country, and financial goals. You need to ensure the following documentation in place to be allowed to invest in mutual funds – KYC (Know Your Customer), FCRA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standards)

Stocks – These are a good bet only if you have been tracking the market and are well aware of the economic changes in the Indian economy. Stocks might be difficult to track while staying abroad, hence except for blue-chip stocks, its best to go for safer investments.

Fixed Deposits – Fixed deposits provided by banks and NBFCs are also a good option as they offer fixed returns and can be locked-in for a pre-determined timeframe. NRIs need not make frequent changes to FD investments as they can be renewed automatically.

Taxation – As an NRI, taxation can become a pain point with almost 20-30% tax rates applicable to investments and earnings in India. All income and earnings earned here are taxable here. Only interest on NRE and FCNR accounts is a tax -free whereas that in NRO account is also taxable.

Choosing the Best Company Fixed Deposits

Bajaj Finance FD offers one of the highest FD rates in India. You can look at assured returns of up to 8.05% backed by the highest safety ratings of FAAA by CRISIL and MAAA by ICRA.

Along with the high-interest rate, you can also look at flexible tenors ranging from 12 to 60 months, auto-renewal facility, easy loans against your FD, periodic interest payouts such as monthly, quarterly, bi-annually and annually. You can be assured of the most hassle-free investment experience with online account opening and management via Experia- your online fixed deposit account.

If you are not comfortable in saving a large part of your PF savings in one FD you can also break that amount in multiples of Rs. 5000 and invest in multiple FDs.

You can also consider investing in the Systematic Deposit Plan offered by Bajaj Finance wherein you can start depositing Rs. 5000 per month in an FD.  A tenor between 12 to 60 months can be chosen for each of these deposits. The number of deposits can be from 6 to 48.

The interest rate for each monthly deposit will be the one prevailing on the date of the deposit. This will help you gain from the prevailing interest rate.

Considering all these features, this instrument will give you a stronghold on your investments and finances in India.

All these features make it a smart investment option for retirees who need funds regularly.