An easy way to invest your money for anyone is to take this route of mutual funds. Suppose you are earning more than a few lakhs every month, and you can see most of it invested in the stock market through mutual funds. Most funds have generated more than 15% over the long term. If you have a visa period of 2 or 3 years it is easy to create a large corpus when you return to India.
Even if you have become a citizen of a foreign country or are in the process of becoming a foreign national, you can consider investing in India on a repatriation basis. This way you can use the money you earn. Being an NRI, investing in mutual funds will give you better returns. Look at the returns of equity mutual funds in India from the beginning,
Even if you have become a citizen of a foreign country or are in the process of becoming a foreign national, you can consider investing in India on a repatriation basis. This way you can use the money you earn. Being an NRI, investing in mutual funds will give you better returns. Look at the returns of equity mutual funds in India from the beginning,
Money Market;
If you are travelling for 6 months alone and want to make money in the short duration, you can use the ultra short term bond or short term bond which can provide you with good returns. These are same as fixed deposit with best tax benefits.
You have mutual fund for short, mid or long term and here are some of the best funds,
Factors to be considered before investing by NRI’s,
1) How long is your investment tenure
2) Corpus you are looking to build in “X” years
3) Your age at the time of investment as there may be other dependencies
4) Risk profile as returns may vary with risk
5) Tax implications of that investment avenue once the term is over
6) If you need that amount after reaching India or want to repatriate partially at any point in time.
7) These are additional corpus which can be invested judiciously for better returns than investing in safer tax free fixed deposits alone.
Common Investment Mistake;
People are buying a flat and trying to find an onsite job to earn. Now the proceeds are spent on closing the home loan. Remember to save up to your last date. This last date may exceed the retirement age of 60 years.
Another option is that people will close the first home loan, this time trying to find a second home as an asset. It cannot be considered as an asset until you get a minimum rental yield. The costs of doing a second home make you less attractive.
Many believe that if they buy places in the suburbs of their respective cities, it will bring them good returns.
The reason why all this is wrong is that the average real estate income is only 10-11% over the long term. Encouragement during high economic activity, then rates are flat.
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