subject: Scope for Investment for an NRI? [print this page] India being a developing country has a growing economy where there is lot of scope for investment options. These options are lucrative and encourage more and more investors from abroad to invest their money. Not only Non Resident Indians, even a foreign resident who is not an Indian is also seeing hope in these investments as it is a growing economy. The real estate market, shares, debentures, mutual funds are scoring well in the market in comparison to other countries.
Different categories you can consider to gain profits:
NRI mutual fund investment
NRI demat account investment
Real estate oppurtunities
CD or certificate of deposits
You need to maintain a NRE or Non resident external account if you want to make investments as well as transfer the profits or accumulated interest abroad. Only an account with a repatriation facility will allow you to enjoy those profits from overseas. Although, Non resident ordinary investment account allows you to invest, you are not allowed to transfer the funds. You can have an account in the same bank where your parents or spouse has a bank account, so that it is easier to carry out the financial transaction.
For a certificate of deposit or any other deposits with a maturity period, you must have an FCNR account. This certificate of deposits can be held for a period of five years or for a short period of six months too. If you withdraw the cash before its maturity period, you will incur a penalty. Avoid, withdrawing it before the maturity date. Think before you state the period for which you want to lock in that amount.
Trade NSE shares, BSE stocks and keep a track on how the National Stock Exchange and SENSEX is doing online. You must be well informed about the sensex indices so that you can trade well, sitting abroad.
