Non-residential Indians (NRIs) have played an important role in the economy of India and they contribute to foreign direct investment (FDI) to our country's economy. We have curated top investment options for NRIs in India. The deck consists of the below topics: 1) Who is an NRI? 2) Why is it Profitable to Invest in India? Be Clear About Your Financial Goals 3) Investment Option 1 – Bank Fixed Deposits 4) Investment Option 2 – Mutual Funds or Direct Equity 5) Investment Option 3 – Real Estate 6) Investment Option 4 – Investment in Bonds/ Government Securities 7) Investment Option 5 – National Pension Scheme (NPS) Hope you liked the content, do share with all your NRI relatives and friends!

1. TOP 5 INVESTMENT OPTIONS IN INDIA FOR NRIs

2. Contents
• Who is a NRI?
• Why is it Profitable to Invest in India?
• Be Clear About Your Financial Goals
• Investment Options – Bank Fixed Deposits
• Investment Options – Mutual Funds or Direct Equity
• Investment Options – Real Estate
• Investment Options – Investment in Bonds/ Government Securities
• Investment Options – National Pension Scheme (NPS)

3. 3
Who is an NRI?
There are two acts that define who an NRI is.
As per the Foreign Exchange Management Act, a person is a Resident of India
- if they have stayed in the country for 182 days or more in the preceding financial year. *
As per the Income Tax Act 1961, you are a Resident of India if –
• You have stayed in India for 182 days or more in the current financial year, or
• You stayed in India for 60 days or more in the current financial year AND 365 or more days in the preceding 4 financial years
If you do not satisfy the above conditions, you shall be considered a Non-Resident Indian.*
* Some exceptions that apply to the definition of NRI are not covered here for the sake of brevity. Readers are advised to read the content of both
acts for the full definition.
NRI Doctors NRI Engineers NRI Bankers Retired NRIs

4. 4
Why is it Profitable to Invest in India?
The government has simplified rules and regulations to invest in India in order to encourage NRIs and to boost
economy.
Falling Indian rupee means that you get more money when you transfer to your family in India.

5. 5
Be Clear About Your Financial Goals
To build a corpus for retirement and have financial security
To get the best possible returns
To flow the money back to your relatives in your own country
To build financial assets in your home country

6. 6
Bank Fixed Deposits
NRIs can invest in bank
fixed deposits through any
of these modes.
NRE – Non-Resident External accounts
This can be in the form of savings, current, recurring or
fixed deposits and can be maintained in Indian rupees.
Interest rates: Around 5% - 7.5% ( *subject to market
changes)
Principal and Interest are ‘Non Taxable’
NRO – Non-Resident Ordinary accounts
Manage Indian income of NRIs such as rent, dividend or
pension received in India
Repatriation – Up to $1 million per year
FDs have a TDS as per Indian laws at 30.9% ( *subject to
change)
FCNR – Foreign Currency Non-Resident
Maintain your funds in foreign currency and save yourself
from fluctuating exchange rates
Interest is tax free and can be fully repatriated

7. 7
Mutual Funds or Direct Equity
To invest in mutual funds in India, you need to have any one of the 3 bank accounts i.e. NRE/ NRO or FCNR. The investment has to
be made in INR and not foreign currency. Investment amount will be directly debited from the account in INR. At redemption, the
amount shall be paid in Indian currency either through cheque or directly credited to investor account.
Tax rates for NRIs to invest in Mutual Funds in India
Equity Mutual Funds Debt Funds
Short Term Capital Gain
(STCG)
Taxable at 15% Taxable as per income tax
slab rate.
Long Term Capital Gain
(LTCG)
Taxable @ 10% where
LTCG>1 Lac (No indexation
benefit).
Taxable at
10% without indexation
((unlisted)
20% with indexation (listed).
NRIs are eligible to invest directly in stock market under the Portfolio Investment Scheme (PINS) of RBI. NRI has to open a Demat
account through a SEBI registered brokerage firm and can invest via broker only.

8. 8
Real Estate
Investing in real estate not only gives you a
possession that appreciates financially, but also
emotional security.
There is no restriction on the number of residential
or commercial properties that you can buy in India.
But you cannot own agricultural land, farmhouse or
plantations unless they are through inheritance or
gift.
Selling the property comes with restrictions via
FEMA (Foreign Exchange Management Act),
especially in case of repatriation transactions.

9. 9
Investment in Bonds/ Govt. Securities
Government or private company projects often require money for
various projects and expansion.
Invest in bonds to become a lender in that project.
Get fixed returns on such bonds.
If purchase is done through NRE/FCNR account, the proceeds can be
easily repatriated to the country where you live.

10. 10
National Pension Scheme (NPS)
NRIs between ages
18 and 65 can
contribute via funds
transfer from NRE/
NRO accounts
Who can invest?
Citizens of India living in India or
NRI who holds an Indian citizenship
NRI who has given up their Indian citizenship

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