Investment Schemes and Insurances for NRIs or people working abroad

A citizen of India who was not in India for more than has 182 days of the financial year in India is called NRI. This means an NRI should be outside India between April 1st of last year until March 31st of this year for more than 183 days. NRIs will be considered as Indians but they will not pay tax here.
An NRI should invest his money while earning so that he will have a peaceful retired life without any financial problems. Investments are important for him to get good returns, This will help you to have some financial assests which will be useful to you and your family as well.
The following are some of the methods an NRI can invest in India.
1. He can deposit the money in Indian Banks as Fixed Deposits. He can open FDs in any of the three types of modes of FDs available for NRIs. Non Residential External Account, Non-Residential Ordinary account and Foreign currency non-resident. These three types are available. The NRI can contact his nearest branch of the bank and get the details of various schemes and can select the best one which suits him]
2. He can invest in Mutual Funds. An NRI needs an account from the above mentioned three accounts in India to invest in Indian mutual funds. These accounts can be used to pay the money into those accounts. There are many mutual funds that will accept NRI investment DHFL is one such.
3. He can invest in shares of various Indian companies on NSE. One should have the following for investing in shares. A saving account in India under NRE/NRO schemes. A Demat account and a trading account with a registered broker for trading purpose.
4. Real estate investment is also a good investment for NRIs. He can invest in purchasing the property and as and when required he can sell them. He should have one of the three accounts mentioned in point No.1 and he can decide which account he can use based on the amount he wanted to invest.
5. He can also invest in the National Pension Scheme (NPS). This pension scheme is good to save for retirement. Any person in the age group of 18 and 60 can become a member of the NPS. He can choose one from the available two accounts. The first type is that the funds in this account are locked until the age of retirement. A person who retired before 60 years can take 20% of his investment and if you retire after 60 years you can take 40% of your investment as cash and the remaining you have to invest in annuity schemes. Once you have this account you can also go for other option also in which you can deposit money and withdraw as per your requirement

There are many investment modes in India for the NRI persons. Govt always brings in new schemes to attract them as they are the most prospective investors. They are allowed to make investment in various schemes except Post Office savings schemes. Some of the main areas where they can invest are as follows -

1. Equity markets - Indian equity markets are known for their fluctuations and the shrewd investors can make money during those ups and downs. NRI have generally substantial funds to invest in equity markets and can make a handsome gain time to time.

2. Mutual funds - These instruments are the favourite of domestic as well as NRI investors and give good return in long term investments. As the liquidity in these are high they are the preferred investment option for many of the investors.

3. Bank deposits - Indian banks offer good interest to the NRI on their bank deposits. This is a safe and secure way of investing for NRI.

4. Real State (other than agricultural land) - This is an area which was the most lucrative for the NRI and they continuously used this option for making their investment in it and made huge profits during the last few decades when there was property boom in India. Today the real state is almost in a stagnant stage so they are not investing much in these projects. Anyway it used to be a great option for investment.

As regards the insurance there are many banks and insurance companies which offer insurance products to the NRI as well as to persons of Indian origin (PIO). So they can choose as per their requirement from them.

Investment schemes: NRI people can invest in dollar-denominated govt bonds or Bank FDs without converting into Indian rupees. When they feel suitable they can convert into Indian rupees. For non-resident Indians income from working overseas are tax-free,however, the investments they made attracts tax as usual. NRIs can invest their money into stock markets, but they have to invest through a portfolio investment scheme as regulated by SEBI. Investing mutual funds are normal like any other Indian residents but they have to disclose some terms while investing in a mutual fund.

NRI can invest their money into foreign banks but they must disclose their earnings in India while filling tax. Buying property outside India may need some RBI nod for investment. However, buying real estate in India is as usual like normal Indian residents.

Insurance is globally available for NRI as well as Indian residents. Some insurance companies offer if you live outside India or india you can get hospital access around the world. SO this type of multinational company is offering global hospital facility and accidental insurance. However premium may differ for a plan to plan according to needs.