Investment Tips for NRIs

The Indian economy has always been characteristically a fast paced developing and emerging market. As an Indian living abroad, it often makes good business sense to make wise investments back at home. Whether you are an Indian who is pursuing a dream job abroad and wishes to settle back in India post retirement or you are an Indian who has parents living on their own in India, and are dependent on you for monetary support, timely action can help you achieve your investment goals.

First things first, starting early is very important. The younger you are, and the earlier you start saving money, the faster you can build a corpus which will support your financial needs.

Depending on the immediate needs, an NRI can either invest in the equity market in India or alternatively build a portfolio with three to four medium-term mutual funds. An equity investment done wisely can fetch long-term returns taking into account the inflation factor. Years later when the NRI investor decides to take out the invested money, he will definitely have more than what one would have got with a paltry interest in a savings or fixed deposit account. However, if the goal is to send out monthly remittances back home to your parents then investing in a monthly income scheme like a mutual fund would make more sense which can earn monthly dividends.

Apart from the above, an NRI can also use a part of one's savings to frequently invest in gold or real estate in India. When you are back in India, these assets will help you gain a comfortable foot hold and make your retirement life far less stressful.

Remember the key is to invest early on and to invest with a goal in mind. Jumping into various investment instruments without taking into account your short/long-term goals would be counterproductive, since the benefits of a particular scheme which for example work well for a short term perspective, might not after all be a prudent choice for long-term gains. So diversify try to diversify your portfolio, and invest in SIPs or Equity as per your needs and invest frequently in long-term assets like real estate and gold.

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