A Guide to NRI Investment in India

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?

Before we jump into details let’s understand how an NRI is defined: A Non- Resident Indian (NRI) is a citizen of India who is currently living outside of India in a foreign country.

Can NRIs Invest in India?

While NRIs can invest in India they have to follow regulations prescribed under the Foreign Exchange Management Act (FEMA). Learn more about the options, rules and regulations around NRI investments in India here: NRI Mutual Fund Investment Options 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:

  • Fixed Deposits

  • Mutual Funds

  • Stocks & Bonds

  • Real Estate

The above has been covered in detail basis the duration of investment you’re considering in the following blogs:

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:

  1. Download the Cube Wealth app

  2. Enter your investment amount

  3. Enter your risk appetite

  4. Enter your investment time horizon

  5. Hit search

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

Want to start investing?

We know it’s a big decision to start investing, to change advisors or to try new investment options. That’s why we give you the option of a free personal phone consultation.

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