10 Best Investment Opportunities for NRIs in India
Planning a good investment has to be done considering many factors. With the markets not being stable and lots of fluctuations taking place, one has to make a thorough research before deciding on which option to finalize. With the right kind of investments are the right time, you could save a lot on your savings and also double it up. There are the long term investment plans and the short term ones. It all depends on the requirement of the cash, the willingness to undertake a risk and the expectation of the returns by the investor. Given below are a few of the top and safe investment options in India, that have acquired satisfactory returns.
1. Bank Fixed Deposits (FD)
This is the most sorted investment and the safest. Depending on the tenure of the FD, the interest rate depends on the bank. Senior citizens enjoy about 1% more interest rates. Tenure could vary from 15 days to five years. Since this does not fluctuate, most people who do not prefer to take risks opt for this option.
2. Investments in Insurance Policies
Among the best investment alternatives, insurance policies are considered as it offers services to protection of your life and assets and also provides risk and satisfactory results. With reasonably priced premium, the markets offer a wide range of insurance policies like for home, life, health, car etc. which are among the popular policies in India.
3. Investments in Public provident Funds (PPF)
This is a government supported investment scheme. In a financial year, maximum of 1lakh rupees or a minimum of 500 rupee should be deposited. A PPF account should be opened fro the operation and it could be done through any sub-divisions of the nationalized banks or through post – offices. This scheme falls under the Section 80C of the IT Act and hence a deduction of tax for up to 1 Lakh is possible. The lock in period for the scheme is 15 years and the interest rates are evaluated on a yearly basis.
4. Investments in National Saving Certificate (NSC)
This investment is secure and is supported and promoted by the Government of India. The lock in period of the scheme is for about 6 years and there is no high rate amount that has to be deposited. The lowest being 100 rupees, any amount from then on could be invested. This scheme also falls under the Section 80C of the IT Act and hence the profit acquired is tax free up to one Lakh rupees.
5. Investments in Mutual Funds
Investing in Mutual funds should be done after analyzing certain factors and how far they would benefit you. Certain factors like the performance at long term and short term, the consistency in returns, the fund manager’s performance with the fund operators, and performances during the ups and downs of the markets should all be observed for better understanding of the funds. The best way to select a mutual fund scheme that you could rely on are is to select a 5 star or 4 star rated fund from agencies like MoneyControl, ICRA ratings and Value research Online. Basically, Mutual Fund firms accumulate cash from investors and invest it in share markets. Even though Mutual funds are also subjected to various market risks, they do have a fair share of profit.
6.Investments in Stock Markets
This investment is very risky as the markets are highly volatile. With the right analysis and right kind of buy and sell, investors could make a fairly high deal. However, since the markets could not be predicted, one has to be prepared markets when hitting low points also. Investors, who need to make money quickly, and ready to take the risk, could opt for this kind of investment.
7. Investing in Gold
Gold has fascinated Indians from centuries ago and with the increasing prices in gold, this yellow metal is an option for investment too. One could invest in gold and when the prices go higher than the purchase, it could be encashed for better profits. Though the market currently has gone a bit low, gold is still considered as one among the good options in investing.
8. Investments in Real Estates
Since India is growing, there is a huge prospects in the real estate business. With land prices soaring high, good returns are expected on a deal, and most of the Indians are switching to real estate investment these days.
9. Investments in Equity
Private equities are expanding at a faster pace in India. In this scheme the equity securities are in private companies and these are not traded publicly in stock exchanges. Usually a private equity firm, and angel investor or a venture capital is those who make private equity investments.
10. Investments in Non Resident Ordinary fund (NRO)
This scheme is best for those residing in abroad countries, but would like to make some investments in India. The deposited amount and the interested amount is completely reparable. Institutions listed under the RBI , other than banks could also be chosen for investments.
These are some of the investment schemes that one could opt for while planning to start an investment in India. Based on your needs, priorities and budget, you could choose one that fits you the best and enjoy the maximum returns for the savings that you do. Investments should be done only after clearly understanding the documents and about the scheme, for better results.
Hi, Mani Karthik here. Having lived in USA, India & Middle East, and worked for big MNC’s to startups, I have a lot to share with you. My aim is to help people, by sharing everything I’ve learned in life, through this blog. It’s read today by more than 150K people world over! I currently live in LA, California and visit India occasionally. Here’s my full story on who I am and why I blog. Connect with me on FB, Instagram, Twitter or WhatsApp (+001-408-489-4785). Happy to help! 🙂