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Why Is Investing In India A Great Option For NRIs?

If you’re an NRI looking to invest in India then this blog is for you. Understand the benefits of investing in the Indian market. Learn more about the investment options for NRIs.
November 7, 2020

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The Indian economy has consistently ranked in the top 5 the fastest growing economies in the world over the past 3 decades. Even with the pandemic, the Indian economy is projected to grow by 8.8% in 2021 according to the IMF. Some Indian economy facts:


  • When it comes to purchasing power parity, India is the 3rd largest economy to make the list

  • Seventh largest in terms of nominal GDP - Better than Canada & nearly as good as the US

  • Only trillion-dollar economy to be in the top five


But does this mean there’s a clear benefit to investing in India if you’re an NRI? And what are your options? Well, this blog will answer all these questions and more! Let’s start off by understanding why you should invest in India.


Why Should NRIs Invest In India?


NRIs invest in India to create a nest egg, retirement plan, familial responsibilities, and more. Here's why you should invest in India:


  • The Value Of Currency


Even though the Indian economy has been booming over the past few decades, the power of currencies such as the USD, Pound sterling, and the Euro has steadily increased when compared to the rupee. 


 

Currency Amount Value in INR (2010)  Value in INR (2020)
USD $1000 ₹45,085 ₹74,240
Pound sterling £1000 ₹71,660 ₹97,417
Euros €1000 ₹60,590 ₹87,901

Regardless of the interest rates, the value of your USD, Pound sterling, or Euro investments is likely to grow. This would mean that you will be able to earn better returns.


A point to note, however, is that the USD remains the undefeated currency. Its value rarely fluctuates and the INR is one of the few currencies that has maintained a steady exchange rate with the USD.


  • Diversification


Apart from the obvious geographical diversification, you can diversify your portfolio with investments such as equity funds, debt funds, liquid funds, stocks, and more across sectors & industries. 


Speaking to a wealth coach can help you go beyond traditional investments & get the best of investment opportunities such as digital gold & Peer-to-Peer lending.


This festive season, give your loved ones a gift that grows over time.


  • Alternative Assets


The beauty of economic progress & growth is that newer and better forms of investment options can develop & prosper. One such investment option is P2P lending. With benefits such as thoroughly vetted borrowers, better interest rates, higher liquidity, and a low minimum investment amount, P2P investments have historically performed better than bank FDs.


The market projections indicate that P2P investments could be a $5 billion industry by 2023. 


  • Better Interest Rates


Indian banks provide better interest rates than the US, Australia, Japan, China, Saudi Arabia, and many other countries! Sounds surprising, right? But most NRIs aren't aware of this fact and end up letting their money stagnate in the US or Europe. 


  • Retirement


Setting up a retirement plan either by investing in mutual funds & stocks or by buying real estate is easier & cheaper in India as compared to countries like the US.


If you're an NRI planning to return to India after your retirement, this blog can help you figure out how to set up mutual funds for retirement.


Historical Market Returns


The historical trends suggest that long term investments in the Indian market can give better returns.

Source: Google


6 Investment Options For NRIs


  1. Bank Fixed Deposits

  2. Mutual Funds

  3. Stocks

  4. Govt. Bonds & Securities

  5. National Pension Scheme (NPS)

  6. Real estate property


How Cube Wealth Simplifies Investments For NRIs


If you're putting off your Indian investments for a later date because the process is complicated, think again. The Cube Wealth app makes it very simple & easy for NRIs to invest in India.


The Cube Wealth app gives NRIs access to:


  • India’s best money managers 


  • Mutual funds, Equity Advisory, PMS & Alternative assets


  • Flexibility to invest via the NRE/NRO route or FPI route


  • Quick seamless KYC & signup


  • Super low minimums & instant liquidity


Book a free consultation call with our wealth coaches or download the 4.5 star rated Cube Wealth app today.


Remember These Things Before Investing In India


  • It is illegal to use your Indian savings account after you move out of the country. 
  • NRIs are required to convert savings bank accounts into NRE or NRO accounts.
  • NRIs are allowed to buy properties in India. The catch - it should be a joint purchase with someone living in India.

Watch this video to know more about alternative investment options


Shriram Shekhar
Shriram is a Consultant at CubeWealth. He has developed cutting edge IT products for over 2 years before turning to his passion for the written word. His love for philosophy, developing products, and empowering people through quality content is what got him to CubeWealth.

Top 4 Reasons To Try Our Powerful Investment App!

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  • High Quality Mutual Funds
  • Top Notch Stock Advisory
  • Expert Financial Advisors
  • Alternative Investments

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