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Thousands of NRIs shift to various countries every year. In the United States alone, more than one million visa applications from Indians are processed. Despite immigration, many non-residents of India (NRIs) are there who have income sourced in India. Even, many of them go there with a dream to come back here again after retirement. So, continue to lookout for the best opportunities, especially the investment plans in India. This is a vital step for managing their finances, no matter where you go and live.
This well management is called wealth management for NRIs. Here in this blog, we bring a few important tips for non-residents to manage their wealth.
- Convert Bank Account into NRO Account
This is a very first step that non-residents should work on. There may be many accounts, such as saving bank account, Demat account, etc., in their name in India. Since they are no more a normal citizen, they have to convert all these accounts into NRI accounts. Here, an NRO (Non-Residential Ordinary), Foreign Currency Non-Resident (FCNR), or NRE (Non-Residential External) account can help. NRIs must have this account, especially if they have income from any source in India. It will combine their accounts. And hence, managing them all become easy. Also, these accounts help in earning foreign currency and repatriate funds easily. Another option is opening a PIS account. It expands for Portfolio Investment Scheme account that can help in easing trading. Simply put, Indians can buy and sell their shares on some recognized stock exchanges here.
- Regularly Review and Rebalance
Markets and economic conditions are ever-evolving. You should regularly review your PIS to ensure that it resonates with your risk tolerance and financial goals. Monitoring the performance of your investments is necessary. For this, you need to discover market trends, economic indicators, and global events that could actually impact your portfolio. This will help you to make adjustments to resonate them with your financial goals. If anything seems troublesome, you can sell or buy to rebalance your portfolio over time. This activity maintains the desired asset allocation.
- Discover Investment Plans and Choose the Best One
India is a developing economy where equity is growing rapidly. This is why the debt return in the country is higher than those of developed countries. This is why selecting the best investment plan in India can help non-residents to make more money through investing in mutual funds and equity shares. But before investing in shares, read the guidelines specifically from RBI thoroughly. Apart from this investment, they can purchase any residential or commercial properties in India. This alternative brings a few tax implications. They should strictly take care of these implications when they are likely to sell any property. Otherwise, the tax implication and ownership rights can adversely affect your investments. You may consult legal experts for a smooth real estate transactions.
- Optimize Currency Exchange
Non-residents can also make benefits out of currency exchange rates. Certainly, these rates can impact ROIs. Timely and strategically exchanging currency can soar investment gains. To make it achievable, you can utilize the services of foreign exchange experts. Those professionals can assist you in optimizing these transactions. You should also stay informed about foreign exchange regulations and limits that are concerned with NRIs. Ignoring these updates can lead to compromising your investments and repatriations effectively.
- Invest in Health Insurance
Having a health cover is essential. This can help in coping up with the rising healthcare costs. Non-residents should also have health insurance. Having pre-existing diseases may not make it easy to acquire a plan. So, it’s good to invest in a plan before for overcoming expenses associated with potential diseases. This initiative will help you to sail across uncertain medical expenses.
- Discover Tax Liabilities
Capital income from India is taxable in India. However, India has a Double Tax Avoidance Agreement (DTAA) with many countries. This can help in avoiding tax if one has the same income twice. This agreement allows you to set off taxes that have been paid in one country, but are due in another country. The DTAA agreement brings peace of mind, as it can help non-residents to pay less tax rates in India. In order to leverage DTAA, you can fill the Form 10F. In addition, you should have a tax residency certificate from the country of your residence.
- Seek Professional Guidance
Wealth management for anyone, including non-residents, can be like chewing iron bullets. It involves complex legal, financial, and tax considerations. Consult with financial advisors, tax consultants, and legal experts who specialize in cross-border wealth management. Their insights can help you make informed decisions.
These tips can help non-residents to not only manage their wealth, but also make profit and prosperous life after retirement.
Conclusion
NRIs should focus on diversifying their investments across various asset classes to manage risk effectively. They should prioritize building a well-structured financial plan that aligns with long-term goals. Utilizing NRI-specific investment options and tax benefits can help while keeping them informed about changing regulations. Regularly review and adjust the portfolio to maintain alignment with evolving financial objectives and market conditions. Seeking professional advice from financial experts with expertise in both India and the resident country’s financial systems is crucial for a comprehensive wealth management strategy.
