If you’re an NRI considering investments in India then welcome to the ultimate NRI investment guide. Through this piece, Cube Wealth will help you reach the best investment options for NRIs in India.
As an NRI you may have considered investing in India in the past and perhaps looked away when the process seemed a tad bit complicated. At the same time, you really do want to invest in India because you know it is an effective method of participating in the Indian economy. Investing in India is great because our country has a lot more potential for growth than other more mature markets.
Well, now you can get free advice from a wealth coach who can help you through this on The Cube App
What is an NRI?
Can NRIs Invest in India?
Why Should NRIs Invest in India?
Investing in India is a great way of creating wealth and simultaneously helping the country’s economy. It’s the ideal time to invest in India as we have a stable majority government in power. In addition to that, a lot of Foreign Direct Investment (FDI) is flowing into the country. Clearly, the Indian market has immense scope for growth and everyone wants to cash in on it.
Besides this, you should consider investing in the Indian market because:
– You could benefit from rupee appreciation
– You could get potentially higher returns
– You will enjoy geographical diversification
Best Investment Options for NRIs in India?
There are many lucrative investment options you can consider as an NRI when investing in India, these include:
Stocks & Bonds
The above has been covered in detail basis the duration of investment you’re considering in the following blogs:
- Best Short Term Investment Option
- Best Long Term Investment Options
How Can NRIs Invest in India?
Indian Asset Management Companies cannot accept foreign currency for payments. Therefore you must start by creating an NRO/NRE/FCNR account. You can also invest through Power of Attorney. The power of attorney holder must be KYC compliant and then you can make payments by cheques drawn on your NRE or NRO account.
To start investing follow the steps below:
Download the Cube Wealth app
Enter your investment amount
Enter your risk appetite
Enter your investment time horizon
This will show you the best investment options for you. You can also connect with a Cube Wealth Advisor and ask any doubts you may have.
Taxes on NRIs Investments in India
How NRI investments are taxed depends on whether India has signed the DTAA (Double Taxation Avoidance Treaty) with the NRIs country of residence. In which case NRIs don’t have to pay twice the tax. NRIs will, however, pay tax on capital gains.
How Equity Funds Are Taxed For NRIs:
Short Term Capital Gains @ 15%.
Long Term Capital Gains > Rs 1L @ 10%
How Debt Fund Are Taxed For NRIs:
Short Term Capital Gains @ 30%
Long Term Capital Gains > 3Yrs @20%
Tips for NRIs to Invest in India
Talk to Cube Wealth Expert for advice
Invest consistently & with discipline
Automate investments using Cube Wealth
Carefully weigh your options
Understand your risk appetite before investing