Investing across borders: A guide for NRIs

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As a Non-Resident Indian (NRI), you are a global citizen, who recognises that when it comes to opportunity for building wealth, the world truly is your oyster. This should be reflected in your investment portfolio to maximise investment themes and opportunities across borders. And while you may have left the motherland, it doesn’t mean your investments cannot still be rooted there. Lucrative options for investments for NRIs in India are several and here we explore those and how you should go about it.

Investment options for NRIs in India

Here are some of the top NRI investment options in India:

1. Real estate

Property prices in most cities in India have shown an appreciation trend over the past decade. This coupled with the devaluation of the rupee against the dollar makes buying property in India a lot more attractive for those earnings in most first-world country’s currencies. Investing in property in India will be beneficial both in the short-term and the long-term. In the short term, you will benefit from rental income, and in the long term from potential price appreciation of the property.

2. Stocks

If you look at the stock market trends and returns of the US, India, and China, over the last few decades, you will observe that the stock market of these different countries (and of most other countries in the world) is not perfectly synced. A market downturn in the US may not happen at the same time as one in India and even if it does, the extent will often not be the same. Hence, when your portfolio has diversification across geographies, for instance, if you have invested in the Indian stock market, you hedge risk and minimise losses.

3. Mutual funds

Whether you want to invest in the stock market or the bond market in India, investing through mutual funds makes for a great option as an NRI. This is primarily because mutual funds have professional fund managers who make all the strategic investment decisions of asset allocation, timing the buying and selling, and more. And as an NRI, since you may not be always informed of the market trends and updates in India, you can rely on the fund manager to make timely investment calls.

Wealth management for NRIs

As anNRI and a High-Net-Worth Individual (HNI), making use of wealth management services in India would prove to be beneficial in managing and growing your wealth. When you partner with a reputable bank or financial institution in India that has experience and a strong network domestically and globally, you ensure that your wealth, not just its preservation but also its appreciation, is in good hands.

Wealth managers, along with their team of experts, will take care of everything from the right allocation of funds across assets and geographies to tax implications across borders. Another advantage of partnering with a trusted wealth manager is that you can seek a range of different services, including estate planning, family office, and insurance planning, as and when required to cover all the bases of your financial life.

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