Why Financial Planning for NRIs?
Planning is bringing the future into the present, so that you can think about it and MAKE IT PERFECT!
NRIs have access to the entire world, which raises the question of why they should invest in India. If the answer is yes, Another major challenge is determining where and how to invest in India.
- India’s GDP growth rate remains the highest among major economies.
- Among emerging markets, India receives the most FDI.
- Reliance Industries has demonstrated an Indian company’s true potential.
These facts indicate that India remains a desirable investment destination. You should take advantage of India’s growth as an NRI.
You may not be able to start a business or return to India at this time, but you can still participate by investing in the Indian market.
Why Investing In India A Great Option For NRIs?
One of the most rapidly growing and stable economic systems
It is critical to consider a country’s economic stability when investing. India has one of the world’s fastest-growing and most stable economies, lowering investment risk even during market volatility.
Demographic
India’s demographics show that more than 65 percent of the population is under the age of 35. Consumerist aspirations and a higher proclivity to spend characterise this group. They have more disposable income, which they will put towards improving their standard of living. Companies will earn more money as a result of this.
Furthermore, they are aware of the importance of investing, as evidenced by the large inflow of retail investments in financial products, particularly market-linked financial products.
This means our markets have the potential to do well. There will be more steps to streamline markets and financial products.
Huge-spending by corporates
In India, major international brands have begun to operate. In India, big multinational corporations invest heavily on marketing. Before committing large sums of money to India, they must have done some research and analysis and seen some potential in the country.
NRIs can follow in their footsteps to build wealth.
Underdeveloped Markets
India’s consumer base is expanding at a rapid pace. By 2025, India is expected to be the world’s third-largest consumer market.
Because per capita income is rising, spending on health, education, communication, transportation, food, and entertainment will rise in the coming years. Rural India’s consumption of goods is also increasing. The growing Indian middle class enjoys shopping, which means businesses can aggressively target these various segments.
“NRIs should take advantage of India’s growth story and invest in India so that they can benefit as well.”
Key Indicator Performance
All economic indicators have been pointing in the right direction. Inflation has decreased. The rate of interest on FDs has risen. In recent years, India’s equity markets and mutual funds have outperformed most other countries.
Although past performance is no guarantee of future results, there have been no events in India that have changed the fundamentals, so things should continue as they have.
As a result, India is a good investment destination, and NRIs should take advantage of it.
Should NRI Invest in India Right Now?
Net FII inflows, on the other hand, have been negative. Over the last year, the Indian currency has taken a beating, and the unemployment rate has risen.
However, given the government’s efforts to make India more business-friendly and the rapidly expanding consumer base, we can conclude that India’s growth storey is still intact, assuming no untoward events or incidents disrupt the Indian or global economies.
As a result, NRIs should make a plan to invest some of their money in India’s growth storey.
Where Should Non-Resident Indians Invest in India?
NRIs want to invest in India, but where should they put their money? NRIs have a variety of investment options –
- Equity Investments – By linking a Demat account to their NRE/ NRO account, NRIs can invest in direct equity. They must thoroughly research and analyse the stocks before investing, as there is a risk involved. Mutual funds, on the other hand, are the best way for NRIs to invest in India and participate in the country’s growth storey.
- Mutual Funds – A variety of mutual funds are available to suit investors of various investment styles, risk profiles, and financial situations. They can consult a financial planner for assistance.
- Real Estate – Residential and commercial real estate are available for NRIs to invest in. It is critical to comprehend all aspects of the project in which one is investing. Make sure to buy properties from well-known builders or brands. You can take out a bank loan to invest in order to get additional vetting. It’s critical that you or someone you trust be physically present to close the deal and look after the property.
- Government Securities/Bonds and Certificate of Deposits – NRIs can invest in a variety of debt instruments. These have a low risk but high reward ratio.
How Should NRI Invest in India?
How do NRIs invest in India? Normally it’s through their banks. But be frank it’s the worst way as most bankers abuse the trust of NRIs.
You should hire a good financial planner who understands the needs of NRIs & can guide you towards your goals.
Financial matters are complex, more so if you are an NRI. But managing them is not impossible.”
Hope this post removed your confusion regarding – Should NRI Invest in India? If you still have any questions regarding NRI investment – feel free to add that in the comment section.
Donald G. is the Principal Consultant at NRI Money+. He specialises in creating personalised financial plans for NRIs (Non-Resident Indians) and HNI (High Net-worth Individuals).
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