nri investment guide Archives

Services2NRI Assists In NRI Investment Services in India

October 25, 2019 Manoj Sodhani Comments 0 Comment

The non-residents have a ton of investment opportunities in India. But, the lack of sufficient knowledge and the fear of being fooled often make them reluctant. However, the Indian economy is getting stronger by the day, which is a positive sign for those who intend to invest here.

Services2NRI, being an experienced financial consultant, has gained ground in offering assistance in NRI investment services. The radius of our services covers all these non-resident services:

Fixed Deposits: The fixed deposits are investments that remain barred from market fluctuations. In other ways, the inflation does not cast impact on their interest rate earned. It means that the investor can enjoy fixed income through their interest for that particular tenure.

Also, the principal amount consistently increases without being a failure.

NRE FD: This account allows expats to secure high term deposits, wherein the foreign currency converts into rupees. The interest rate varies as per bank. The non-residents can remit their money in an Indian account.
NRO FD: Like NRE FD account, it is also meant for a term deposit in allows fund transfer into the foreign account. But, the amount in this account is taxable, as its limit is up to $1 million. It can be opened jointly.
FCNR FD: This account for the term deposit ensures saving foreign currency. The interest earned on this NRI investment is repatriable to the depositor’s country of residence without any restriction. It remains unaffected from the market fluctuation.

Mutual Funds: They are the risk-prone investments that are governed under the strict regulations of the Securities Exchange Board of India (SEBI). Being a subject matter of risks, the Indian diaspora often seconds the thought of this investment.

Equity: It typically refers to the amount of money that is returned to the company by liquidating assets and paying off the debts. The expats with the Indian passport can park their money in it as a long term deposit because it is tax free after one year.
Debt Funds: Those who want to invest the majority of their corpus in fixed income or fixed interest, the debt funds, such as a money market instrument, corporate bonds, treasury bills and government securities etc., bring the best opportunities.

Direct Equity: Investment in the direct equity means investing in stocks of a company. If you have enough knowledge about the National Stock Exchange of India (NSE), it attracts a dozen of opportunities.

For being a part of this investment plan, the NRIs should have:

An NRE/NRO account solely dedicated to PIS purposes
A dematerialized account for holding electronic shares
A SEBI trading account with a registered broker

Real Estate/Property: The majority of non-resident community prefers parking their hard-earned money into property. Since it accumulates capital gain through rental income or the sale of the property, the owners seek assistance, or virtual assistance in property management services. Services2NRI supports in these property-based matters:

Buying/selling assistance
Encumbrance /Khata/ Patta/ 7/12 Certificate
Tenant Management/ Vacating Inspection
Utility Bill Payment
Property Monitoring

Bonds & Convertible Debenture

PSU Bonds, a short for Public Sector Undertaking bonds, are about lending money to a company on the promise of being repaid with the interest on a specific date. The creditworthiness of the bank determines its interest rate
Non-Convertible Debenture determines investment in bonds, wherein the interest rate is higher than the convertible debts, but involves less risk. When withdrawing, the bond holder is repaid with cash in full.
Perpetual Bonds are the bonds with no maturity date to be paid out. But, the issuing company pays the return at the end of a particular tenure. The principal amount cannot be redeemed.

Government Securities: These investments are announced to finance day to day governmental operations, military operations and infrastructural development. The Reserve Bank of India (RBI) auctions the T-bills for 3 to 12 months. Unlike any interest rate, they promise a coupon to be redeemed on a discount.

Fixed Rate Bonds: These bonds ensure a fixed rate of interest on investment.
Floating Rate Bonds-These bonds offer interest according to the market fluctuations.
Capital Index Bonds: These bonds allow coupon payment rate, which is adjusted corresponding to the inflation rates.

Certificate of Deposits: Unlike FDs, these are a small term investment, which is saleable. The person needs a dematerialized account for its purchase and selling.
National Pension Scheme (NPS): It is the best investment plan to save money for retirement. However, the account holder shall be in between 18 years and 60 years of age.

It locks all payments until retirement. If you retire at 60, this scheme allows withdrawal of 40% of the corpus amount. On the other hand, the withdrawal rate would be limited to 20% if you want to get it before 20%. The rest of the amount must be invested in the annuity.

Wealth Management: It merges both financial planning and specialized financial services, including personal retail banking, estate planning, legal and tax advice and investment management It aims at conserving and sustaining wealth. Services2NRI deals in these wealth related matters:

Attending to IT Notice
Tax Authority Visits
Arranging Lawyers , Legal Opinion
Filing IT Returns
Legalisation, Notarization, Attestation of Documents
Court Visits

Finance Consulting: Mostly, you skip settling the insurance account or its matters at the time of immigration. Services2NRI lets you sort out such challenges that are in the context of insurance and loan, specifically these services:

Insurance(Life Insurance, Mediclaims Insurance, General Insurance)
Loan Syndication
Document Attestation

How NRIs Can Make More Money via Investment In India in 2017?

November 20, 2017 Manoj Sodhani Comments 0 Comment

Are you soon settling in the foreign country?

Do you have Public Provident Fund (PPF) account and National Saving Certificate (NSC)?

If yes, you must be updated with the current update. But first, let’s catch a brief over PPF account.

What is PPF account?

As stated above, PPF stands for the Public Provident Fund. It’s a long term investment plan. The government imposes no tax over it. It implies that this 15-year long investment plan gives a sigh of relief from the tax. The smart parents or guardians go for this investment on behalf of their minors. It safeguards INR 500 to INR 1.5 lakh for 15 years with the benefit of high interest rate. Currently, the investor gets 7.8% interest rate over such kind of investment.

Until this year (2017), the non-resident diaspora was delighted to save tax via it. But the recent update has disappointed them. The tax free investment for NRIs via PPF is forbidden. Only residents of India can sink money into this government scheme.

What’s the update regarding PPF and NSC?

If you’re likely to shift abroad, you must know that:

Your PPF account would be deemed close.
The NSC will return you the interest amount @ 4% that is currently prevalent in the Post Office saving account.

Earlier, it was yielding 7.8% return on the overall PPF & NSC account investment. But now, this practice is over.

Let’s consider a scenario wherein you are likely to shift in the foreign country. You hold a PPF account that makes you worthy to accumulate the interest of 7.8% over total investment. The day you shed off your residential status, your this account would be closed. And the interest rate would be slashed to 4% as per post office saving account’s rate. But the slashed interest rate would be applied from the previous month when your PPF account was closed.

It implies that your account would be matured before its actual maturity date. This is why you need to encash the accumulated amount when you become an NRI.

How can you save more money after this update?

The financial advisors recommend that it would be a wise idea to encash the invested amount. The accumulated amount should be withdrawn. If you want to invest it further, it’s better to sink your amount into the equity that offers repatriability of Indian investments. Go through the tax intricacies as well.

NPS-the best money saving investment for NRIs:

National Pension System (NPS) is one of the best investment options in India (2017) if you’re planning to re-settle in India. It conserves your money for the long term after retirement. Besides this, you’d get a golden chance to multiply your amount via a great rate of interest.

But, do remember to look into the foreign investment rules of the resident country. Some countries will not charge any tax if you have paid it in India over your capital income. Let’s say, you’re living in the US. You have to reveal the source of ‘how much’ equity as well as asset you possess. The tenet of FATCA makes you bound to its rules. The US tax authority would definitely want to know your total investment and annuity. This is how it would compute the amount of tax over your income.

On the other side, the Gulf countries would not seek access to such investment details. Neither do they impose taxes on the income sourced through Indian asset or equity. Therefore, if you desire to resettle in India after a long stay in such countries, NPS will be a good alternative.

How to Choose a Bank for NRI Investment?

June 2, 2016 Manoj Sodhani Comments 0 Comment

An investor always loves to choose the bank that offers more rate of interest on deposits. It implies higher interest rate always attracts more investors. Non-residents of India (NRIs) are no bar from such intensions.

What’s prevalent rate of interest on saving account in India?

Indian banks mark an edge over European banks. They offer higher interest rate than that of western countries’ banks. Swiss or American banks’ cut off of interest rate remains under 1% for saving account. On the contrary, SBI, HDFC, Axis and PNB facilitate 4% interest rate on saving account. And this interest rate appreciates upto 8 % when one goes for the fixed account investment.

What apex bank Reserve Bank of India (RBI) states?

Reserve Bank of India (RBI) is an apex banking institution. It regulates banking system and norms in India. It used to fix the rate of interest for various accounts. But it has parted itself from regulating deposit interest rate after October 25, 2011. However, it has optioned two:

All banks in Indian must restrict their rate of interest on saving account worth Rs. 1 Lakh.
Exceeding INR 1 lakh saving deposit entertains the investors with different interest rate. And also, the apex banking authority will not intrude in the matter of interest paid on current, saving and FD account. It also looks up whether the similar amount, acceptance of cheque and OD or any other.

Indian banks deliver a lot of NRI investment services, rebates or special service offers for banking. Taking pay bills for expenses into account, one can estimate why India magnetizes them for investment. It facilitates property maintenance, life insurance premium and sending money to family in India.

What things an NRI should notice before investment?

Interest rates do attract but what if its customer support throws ordeals? So, the Indian diaspora should keep in their memory that:

The bank should have its branch overseas. If it is so, the customer support can help them out in sorting any bank related issue.
Accessibility of the banks means a lot. Sometimes, NRIs have to wait in lanes for hours to resolve their banking issues. Check out whether the bank sends its representative to the client’s place or not for facilitating with NRI services. If it happens, the clients will be associated with it for long time.
Notice whether the bank provides special offers time to time especially for NRIs or not.
Notice the interest rate for NRIs. Compare them with the interest rates of other banks as well.
Check whether the bank offers deposit insurance or not. Don’t assume that the bank generally offers. Sometime, it may not.

Procedures for NRIs to Do Investment in India

March 10, 2016 Manoj Sodhani Comments 0 Comment

India is the investment market where recession cast no impact. This is a significant reason for NRIs to entrust their hard earned money in safe hands. Productivity graph of Indian market is going upwards. The reputed economists see this land as the safe basket to secure their money for future. Let’s check out what legal services for NRI has in rundown for investment. …

NRIs Property Investment Guide

January 29, 2016 Manoj Sodhani Comments 0 Comment

The retirement plan of an NRI brings him/her back home. This is the prime reason of surging NRIs property investment in India. During 2005 to 2010, the surging investment in property touched 87%. The estimated growth of this investment by the year 2020 marks 30%. The respective places, which are in the list of favourite destinations for NRI property purchase, are Banagalore, Ahmedabad, Pune, Chennai, Goa and Delhi. Remember! The property should be of immovable category that can be gifted or inherited real estate property. Any inherited agriculture land, farm house and plantation land in the name of the NRI is transferable. But before, he/she should check out property name, sales deed, encumbrance certificate, patta, no due certificate, bank release letter and PAN card.
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