Over 2.5 million Indians pack their bags to shift in the US, UK, Australia, Canada, and other countries. Although it may not be a permanent shifting, the fact is that they don’t live here. A majority of NRIs from Indian Diaspora believes that their home country has an edge when it comes to investing their hard-earned money.
The reason for this is the good return on investment that other countries do not provide. Technically, it’s the fact that NRIs include Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCIs). These natives are not covered under the taxpayers’ community in India as per the Income Tax Act, 1961.
A Goldman Sash survey conveys that net inward remittance to India is going to be $104 billion in the calendar year 2023, which is way more than the previously projected $92 billion. This bullish trend is all because of favourable NRI investment conditions in India.
The survey conducted by SBNRI, an NRI-focused FinTech platform, encompassed NRIs from the United States, Singapore, the United Kingdom, Australia, and other countries.
There are some more soothing findings complementing it, which conveyed that 53 percent of Indian expats from Singapore are fond of investing in India because of better returns on investment than any other country.
A total of 35 percent expats of Indian origin in the UK also feel the same. Likewise, 65 percent of US-based non-residents of India love to send their money back to India for saving and investment.
NRI Investment Services
Here are some most popular services that NRIs can opt in for increasing their wealth.
- Diverse Investment Options
A huge range of NRI investment services is there, which includes various investment avenues. These can be equities or a part of ownership in a company, fixed deposits, mutual funds, real estate, and more. In all, Indian diaspora has diverse options to create an investment portfolio that resonates with their financial goals.
- Expert Guidance
Sometimes, NRIs struggle to finalize the choice for parking their money for wealth creation or expansion. Here comes an expert guide in a key role. He or she should be a certified or highly qualified in this domain. Such professionals with years of hands-on experience can guide you to understand the possibilities. And their recommendations are typically based on the insights into Indian and global market. You can consult with such professionals to make informed decisions regarding where to invest in and navigate the challenges because of complex financial regulations.
- Seamless Transactions
With a professional’s support, non-residents can discover the simplest process of buying, selling, and managing investments. Also, the expert NRI consultant proves an asset when you don’t know how to monitor your portfolios and execute transactions from anywhere you like to do in the world.
- Taxation and Compliance
Complying with regulation is a big challenge in both, India and the country of residence. Indian expats can hire an investment consultant to come across changes or revision in the compliance and tax regulations in India or the country of their residence. This is how beneficiary NRIs can optimize tax liabilities while being stuck to Foreign Exchange Management Act (FEMA).
- Currency Management
Inward remittance refers to receiving currency from a residential bank or overseas sources. In the latter case, the conversion of currency should be professionally done. This step will help in effectively managing risks or challenges associated with the currency.
- Alternatives to Maximize Wealth
Like natives, expats are also able to access golden opportunities for enhancing their wealth. The NRI investment services provider can introduce you to the following alternatives:
- Range of Investment Option
Non-residents have multiple alternatives to generate and maximize wealth. These can be mutual funds, stocks, initial public offerings (IPOs), bonds, and real estate or property. A consultant can show you the best way to come across big and small hurdles in the way. And finally, you would have high returns on your investment.
- Invest in Equity
India has startups that often require capital for their operations and expansion. NRIs can appear as angel investors and trade in their equity in return for capital. The Portfolio Investment Scheme (PIS) of the Reserve Bank of India (RBI) allows such investment in equity to promote domestic entrepreneurship. For this, they should have either a non-resident external (NRO) or non-resident ordinary account (NRO).
In addition, they have mutual funds to invest into, which are the subject of market risks. The most appeasing thing with this alternative is that there is no cap or limit of amount to spend in mutual funds. If you are considerate about the minimum ticket size for category-I angel funds, it’s INR 25 Lakhs.
- Low Currency Risks
The currency value may go up or down because of several factors. This fluctuation can be threatening, which is clearly a risk.
Experienced consultants can help you to mitigate this risk by investing in Indian funds. You may invest in your home currency or whichever is low in value. In all, this is an excellent method of optimizing currency and defeating challenges.
Conclusion
An experienced NRI investment services provider can help NRIs to find the best way to maximizing wealth by investing in India. Such specialists serve in many ways, which range from introducing them to a range of investment options in India to guiding them for becoming angel investors. The options are many, which bring opportunities to increase wealth, no matter where you live.
