Superb Plans of NRI Investment

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Superb Plans of NRI Investment

• Before investing, non-residents of India should
  have Indian account. Lets have a look over the
  accounts facilitated for them

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Non-Resident External Rupee Account (NRE)

• Earning via Indian origin is transferable
  freely
• USD 1 million is its limit
• Repatriation requires CA certification
• Foreign funds can be deposited
• Interest is taxable
• Prime function is to manage earning in India

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Non-Resident Ordinary Rupee Account (NRO)

• Convert foreign currency into INR
• Conversion rate is given as per prevalent price
• Interest and Principal amount can be repatriated
• Fixed, savings and recurring a/c can be opened

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Foreign Currency Non-Resident Bank Deposits
(FCNR)

• Foreign currency can be deposited
• Fixed rate of exchanging currency
• Can be opened as joint a/c
• Maturity period min. 1 yr max. 5 yr
• Tax free deposition

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NRI Fixed Income Investment Opportunities
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National Pension Scheme

• Its the contributory pension scheme.
• Regulated by PFRDA (Pension Fund Regulatory and
  Development Authority)
• Valid age-group lies between 18 years to 60
  years
• Individual account
• Joint account not permitted
• Online banking facility
• Citizenship of India is essential

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National Pension Scheme

• Continue.
• Giving-up citizenship compels for closure of
  this a/c
• Flexibility in investment options
• Lost cost investment
• Tax benefits under Section 80C
• Investment limit for 1 yr Min.INR 500
  Max.INR 6,000

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Fixed Deposit

• Must have NRE a/c or FCNR a/c or NRO a/c
• Interest rate varies
• Interest on deposit is tax free
• Interest earned on NRO investment is repatriated
• Taxable investment

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Certificates of Deposit (CDs)

• Non-negotiable model
• Maturity period is not less than 7 days and more
  than 1 year
• It is mandatorily repatriated
• Rate on return is higher than FD

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Bonds

• Long-term investment
• These are redeemable.
• Fixed rate of interest
• Tier-1 capitals banks are issuer
• Lock principal amount for some time

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Mutual Funds

• Can be equity as well as debt mutual funds
• Debt funds is fixed income securities, including
  govt. securities, treasury bills, corporate
  bonds, money market instrument etc..
• The foretold fund is fairly liquid.
• Withdrawal can be done at any time.
• Capital remains safe.
• Return on investment is low.
• Equity mutual funds are short-termed.

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