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Services2NRI Assists In NRI Investment Services in India

Services2NRI Assists In NRI Investment Services in India

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:

  1. 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.
  1. 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.
  1. 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
  1. 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
  1. 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.
  1. 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.
  1. 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.
  2. 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.

  1. 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
  1. 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

Best NRI Investment Options in India in 2019

Best NRI Investment Options in India in 2019

India is turning into a profitable ground in terms of NRI investment. The government has been improvising several legislations and rules to attract investment by NRIs in India in 2019. Here are a few options that are going to stretch to the heights of popularity as the best investment option.

  1. NRE account investment:
  • Can open with minimum amount
  • Can have joint holding, like your spouse or children
  • NRE deposits are tax free in India as they are not counted in your taxable income
  • Higher rate of returns on account deposits, i.e. more than 10%
  • Highly secure and risk-free investment plan for NRIs
  • Easily & freely repatriate or move funds, including interest and principal amount
  • Unique accessibility advantages, like shopping globally, booking air tickets online
  • Can pay bills within the country
  1. Mutual funds investment:
  • Open NRO/ NRE/ FCNR account, besides SIP account for MF investment
  • Manageable from the country where you live in
  • Profit making possibilities soar with the appreciation in the rupee value
  • Can appoint a Power of Attorney to invest on your behalf
  • Tax free mutual fund gains, if they are retained for more than a year.
  • Tax is deducted at a source of the capital gains, if you invest the holdings for more than a year. You have to pay 10% tax at a source of long term capital gains. It turns 15% if income is sourced through a short term capital gain.
  • Debt funds investment (made for 3 years) adds profit to the NRIs income. Presently, 20% tax is levied on its gain with indexation benefits. If excludes indexation, only 10% tax will be deducted.
  1. FPI investment: FPI stands for foreign portfolio investors. The SEBI or ‘Securities and Exchange Board of India Panel’ has introduced a route viz. voluntary retention route (VRR) for the NRIs investment in 2019. It aims at introducing a uniform regime for all foreign portfolio investors. What features it comprises are:
  • Indian diaspora in foreign can directly invest in the Indian companies.
  • NRIs and OCIs can purchase mutual funds units, spend money in private equities and also use the foreign FPI route.
  • They can invest in debentures of the Indian companies and government securities, like treasury bills.
  • They can retain a minimum required percentage of the long term investment in debt for the period of their choice.
  • This investment is free from the macro-prudential and other regulatory prescriptions that are applicable FPIs in debt markets.
  • The Reserve Bank of India will stipulate the amount of investment in India.
  • The NRIs shall have to retain that amount for at least three years.
  • The investor can participate in any currency and interest rate derivative instrument, OTC or exchanged traded to protect their interest rate or currency risk.
  1. Real-Estate investment: There are many factors that make the real-estate an attractive option for NRI investment.
  • Rental income through a property will be an additional source since the prices have been revised a lot in the previous years.
  • Rather than investing in the Tier 1 cities, the NRI community is tilted to the Tier 2 and Tier 3 cities. It’s just because of the infrastructure development via property investment is gaining momentum rapidly in India.
  • The return on property investment is relatively higher if you invest in the commercial property.
  • The weak value of rupees gives dollar-holders strength. The NRIs can invest minimally to buy the property. The discouraged value of the Indian currency enables them to buy more pieces of land.
  • The regulatory norms have introduced more transparency and added accountability on the part of the real-estate development agencies while complying with RERA.
  1. National Pension Scheme: This is a valid investment option for those who have retained Indian citizenship. They can opt for it if they want to re-locate in India after retirement.
  • It offers leverages in the tax as it follows EET (Exempt-Exempt-Tax) layout.
  • The non-residents can attract good returns.

Retirement Planning for NRIs

Retirement Planning for NRIs

With the development in most Gulf countries and superpower like the United States in transition, mid 80’s saw a large number of Indians immigrating out of their regular jobs and moving to the other countries. This in some cases did open the gaps for unemployed people to secure jobs abroad. In doing so they also began the process of planning for the future.

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