Over the past two decades, India has been an attractive center for investment. Recently, the country is getting attention of (NRI’s) Non-Resident Indians in Ottawa, Canada. Every day the Indian government is getting conducive for business, due to which the Non-Resident Indians (NRI’s) are looking forward to the country to invest and gain huge profits. This article will be discussing about the best investment options for NRIs in India.
If you want to make the most out of your invested money then you should do proper research before making any investment. Investment is a risky thing however if you invest your money strategically after doing proper research, it can bring huge profit to you. Remember that it is very important to analyze your requirements and risk factor before making any investment, it will help you in managing and growing money.
There are plenty of investment options, which makes it more difficult to filter the best-suited options for the investment. That’s why we come up with the idea of writing the article about, the best investment options for NRIs in India fro NRIs in Ottawa, Canada. Financial planning is the need of the hour and investment is more or less similar to resident Indians albeit with some points of difference. Analyzing the whole market situation and considering the returns, we have come up with the following best investment options for NRIs in India.
3 reasons why investing in India will be beneficial for you?
If you are a Non-Resident Indian (NRI) in Ottawa, Canada then you should invest in India for three reasons mainly.
A) Retirement preparation for NRIs in Ottawa, Canada
Securing your future both physically and financially should be your utmost priority. And for ensuring a financially stable future you should invest your savings on different platforms. Your investment and savings determine the quality of your life when you will get old. Investment can bring you huge profits and help you in living a comfortable life.
B) Good returns and high profits for NRIs in Ottawa, Canada
Money invested today will bring prosperity and more money in the future. India is a developing country which means that there is a high probability that the investments you make today will give you huge profits in the future.
C) For financial security of family and building financial assets for NRIs in Ottawa, Canada
Some extra bucks in your pocket will always help you and your family. By making investments and getting insurance you can ensure the well-being of your family even when you aren’t around them. Besides this, the right investment helps you build financial assets for the future.
Irrespective of all the benefits I will recommend you to invest only after analyzing your requirements and risk factors.
NRIs in Canada
Canada, after Russia, is the world’s second-largest country by area, covering about two-fifths of the continent of North America. From the arrival of the Paleo-Indians in North America to the present day, Canada’s history spans thousands of years. Before European colonisation, Indigenous peoples occupied the territories that now make up Canada for millennia, each with its own trading networks, spiritual beliefs, and social organisation patterns. Some of these previous civilizations had long since disappeared by the time of the first European invasions, but archaeological research has uncovered them.
Capital:- Ottawa
Population:- 37,424,000(2022 est.)
Official Languages:-English; French
Total Area:- 9,984,670(Sq Km)
Monetary Unit:-Canadian dollar (Can$)
Currency Exchange Rate:- 1 INR = 0.0164114 CAD
Canada is a North American nation. Its 10 provinces and three territories stretch from the Atlantic to the It covers 9.98 million square kilometres (3.85 million square miles) and extends northward into the Arctic Ocean. Its southern and western border with the United States is the world’s longest binational land border, reaching 8,891 kilometres (5,525 miles).
Indigenous peoples have resided in the present-day country of Canada for thousands of years. Exploration and settlement along the Atlantic coast began in the 16th century with British and French voyages. In 1763, France ceded practically all of its possessions in North America as a result of several violent battles. Following the Confederation of three British North American colonies, Canada was founded as a federal country with four provinces in 1867.
Land of Canada
Thousands of nearby islands, including Newfoundland to the east and the Arctic Archipelago to the north, make up Canada’s overall land area. The Arctic Ocean to the north, Greenland (a self-governing part of the Danish kingdom) to the northeast, the Atlantic Ocean to the east, 12 US states to the south, and the Pacific Ocean and the US state of Alaska to the west; in addition, tiny Saint-Pierre and Miquelon (a French archipelago) lie off the coast of Newfoundland.
Economy of Canada
Exploiting and exporting Canada’s plentiful natural resources was important to the country’s early colonisation and growth. Manufacturing and service industries grew in importance over the twentieth century. Agriculture and mining employed fewer than 5% of Canada’s workforce at the end of the twentieth century, while manufacturing employed one-fifth and services, such as transportation, commerce, banking, and other industries, employed over three-quarters of the workforce.
Protective tariffs on imported manufactured goods have been used by Canada to assist its manufacturing industry for many years. As a result, numerous U.S. companies opened branch offices in Canada to serve the market. The government’s distribution of grants and subsidies to support economic development in slow-growing areas was another pillar of Canada’s economic policy.
Cultural life
In its widest sense, Canadian culture is a mash-up of British, French, and American elements, which merge and compete in every facet of cultural life, from filmmaking and literature to food and athletics. Others have added their own individual flavours to the mix.
People
Canada is home to a varied range of national and cultural groups. Around half of the population was of British origin at the time of the country’s first census, in 1871, and roughly one-third was of French descent. Since then, the percentage of Canadians of British and French ancestry has decreased to around one-fourth each, as fewer individuals have come from the United Kingdom and France, and much more have arrived from Asia, Africa, Latin America, and the Caribbean. Because immigrant groups have tended to dwell in certain areas, their cultural identities have mostly been preserved.
Fixed Deposit (FDs) for NRIs in Ottawa, Canada
It is a fact that FDs are popular among both Indians and Non-Resident Indians. If you are looking for the safest investment options, bank Fixed Deposits (FDs) are best. If you are an NRI in Ottawa, Canada, you can start your Fixed Deposit through your Foreign Currency Non-Resident Account (FCNR), Non-resident ordinary account (NRO), and Non-Residential External Accounts (NRE) accounts. The bank and tenure of the deposit will influence the rate of interest you will receive from the bank. Taking the popularity and safety into consideration Fixed Deposits (FDs) can be counted among the best investment options for NRIs in India.
For More Info Read Out Fixed Deposit
National Pension System (NPS) for NRIs in Ottawa, Canada
Being an NRI in Ottawa, Canada in the age group 18 to 60 years you are eligible to open an NPS account with a Point Of Presence (POP) in India and if you have a Pan Card and Aadhar Card you can also open an e-NPS account. Or if you want then you can also use your Non-resident ordinary account (NRO) and Non-Residential External (NRE) bank account to invest in National Pension System. You can also make an active choice where you decide on the asset allocation in Equity (E), Corporate brands (C), and Government securities (G).
Here you need to remember that you can allocate a maximum of only 75% towards equities. Or you have the option of opting for auto choice where the asset allocation will be according to the life stages (age) if you are not able to decide on the right investment proportions. Remember that if you want to withdraw from National Pension Scheme (NPS) before completing 60 years of age then you will be able to withdraw only 20 % of the accumulated corpus. And for the remaining 80 % of the corpus, you must need annuities.
Direct Equity for NRIs in Ottawa, Canada
If you are a risk-taker and an aggressive investor then you should try your hands on the Indian Stock Market. The Portfolio Investment Scheme (PINS) of RBI makes you eligible for investing in the Indian stock market. All the NRIs in Ottawa, Canada mandatorily need to have a Non-resident ordinary account
(NRO) or Non-Residential External (NRE) bank account, a Demat account, and a trading account if they wish to invest in the Indian stock market.
Real Estate for NRIs in Ottawa, Canada
Real estate in India is currently flourishing and has a booming future too. The real estate prices in some major cities of India are rocketing over the past decades and that’s why several NRIs in Ottawa, Canada are purchasing property in India to rent and lease. Kindly analyze your requirements and risk before making any investment in Indian real estate. India is a developing country and the country is expected to see huge developments over the next decade, thus making it the best option for real estate investment.
Bank accounts used for selling and buying property for NRIs in Ottawa, Canada
You need to remember that being an NRI you are allowed to sell and buy property in India through the following bank accounts: –
- Non–resident external account (NRE)
- Non-resident ordinary account (NRO)
- Foreign currency non-resident account (FCNR)
Honestly, investment in real estate is a decent source of income because it offers good long-term returns and also ensures steady growth over some time.
Mutual funds for NRIs in Ottawa, Canada
Mutual funds are also good options if they fulfil your requirements and match up with your risk profile. The reason I am saying mutual fund is a good option is that they offer higher tax-efficient returns as compared to bank Fixed Deposits. However, you need to remember that being an NRI you can invest through your Non-Resident Ordinary Account (NRO) and Non-Residential External Accounts (NRE). Besides this, the investment you will make should be in Indian Rupees not in foreign currency. The rate of interest you will receive on mutual funds completely depends upon the type of fund (debt, equity, and hybrid) and your investment horizon.
Mutual funds are the new talk of the investment world and are gaining immense popularity nowadays. But here we would like to caution you that you should understand the nature of mutual funds before making any kind of investments. And above all, you should check the important criterion rules for house parties.
The investment of NRIs in Indian mutual funds is governed by Foreign Exchange Management Act, (FEMA) 1999. And as per the Foreign Exchange Management Act (FEMA), NRIs can make investments in Indian Mutual funds in the following capital markets: –
- Direct stocks
- Mutual funds
- Exchange-traded funds
Here you need to keep in mind that though mutual funds give high profit and are gaining immense popularity still they are subjected to market risk. They are riskier than the fixed deposits or national pension schemes. So, you should surely analyze your financial objective and risk profile before selecting the fund. If the analysis and research are done carefully then mutual funds are among the best investment options for NRIs in India.
Important guidelines under Foreign Exchange Management Act (FEMA)
Important points under the Foreign Exchange Management Act (FEMA) are as follows: –
- One can invest money through a non-resident external account.
- Or you can use your non-resident ordinary account for making investments.
- At last, remember that the investment should be done only in Indian National Currency and foreign currency won’t be accepted.
Public provident fund (PPF) for NRIs in Ottawa, Canada
If you are looking for a completely secure and government-backed investment then Public Provident Fund (PPF) is the best available option. While an Indian resident can opt for a PPF account anytime but on the other hand if a Non-resident Indian doesn’t have an existing PPF account then they cannot claim the benefits of the PPF scheme. An NRI can extend its public provident fund account in any circumstances after 15 years of the designated maturity period. Being a government-backed investment, you can count public provident among the safest and best investment options for NRIs in India.
Equity investment for NRIs in Ottawa, Canada
If you are an aggressive investor, then nothing can be more ideal for you than equity investment. Under the portfolio investment scheme of the Reserve Bank of India, the NRIs can swiftly make investments in the Indian stock market. If you are a risk-taker and enthusiastic investor then you can count equity investment as risky but among the best investment options for NRIs in India, considering the huge gains.
Bank account used for equity investments
The bank accounts that an NRI can use for equity investments are as follows: –
- Non-resident external account (NRE)
- Non-resident ordinary account (NRO)
- Demat Account
- Trading account for investing in the stock market in India
Unit Linked Insurance Plans (ULIP) for NRIs in Ottawa, Canada
The foreign exchange management act secures the rights of Non-Resident Indians (NRIs) of investing in Unit Linked Insurance Plans (ULIPs). It means that like another resident Indians an NRI can also invest in Unit Linked Insurance Plans (ULIPs). Currently, investment in ULIPs is one of the most popular and reliable options of investment. The reason why Unit Linked Insurance Plans (ULIPs) are getting popular is that they provide dual benefits of investment and insurance. It not only helps in generating more money if invested properly for a long time but also provides insurance.
Insurance with investment is icing on the cake. Besides this Unit Linked Insurance Plans (ULIPs) has availability of tax benefits and that’s why the NRIs are getting attracted to them. Under sections 80C and 10 (10D) of the income tax act 1961 the premium paid for ULIPs are deductible. Being an NRI you can invest in Unit Linked Insurance Plans and pay the premium through any Indian bank account or any Non-resident external account (NRE) or Non-resident ordinary account (NRO) bank account.
Child plans for NRIs in Ottawa, Canada
Child plans are the best for securing your child’s future. And if you are an NRI, then you should buy child plans in India as you can get great returns from them. By getting child plans you will get huge returns and regular savings. Besides this, these types of plans guarantee a substantial corpus for your child. It means that you are securing your child’s future back in your home country by getting a child plan. Many private insurance companies provide you with such types of plans. You can also get a child plan for your child through the Life Insurance Corporation of India (LIC).
Benefits of getting child plans for NRIs in Ottawa, Canada
Below given are the benefits that are served under the child plans for NRIs: –
- Child plans ensure a safe and comfortable future for your children. It gives financial protection to your child even if you are not there to support him/her. It ensures the financial well-being of your kid.
- Child plan is the icing on the cake as they give you dual benefits. They serve the dual purpose of investment and insurance, thus ensuring the financial security of your child and the growth of money.
- Besides this you will receive a lump sum amount at the end of the policy term in the form of a maturity benefit.
- Child plans facilitate you by offering partial withdrawals. So, in case you are a policy-holder and need urgent money for your kid, you can use a part of the fund to meet your child’s urgent requirements.
Child plans are flexible and work as an investment and insurance that’s why it is among the best investment options for NRIs in India.
Closing words
That was all about the “best investment options for NRIs in India.” We believe this article will surely provide you with some investment assistance. The suggestions of the best investment options for NRIs in India will provide you with some insight into the perfect investment plan for you. If you still have any queries or doubts about safe and best investment options for NRIs in India then you can ask your concern in the comment section. We will try to answer all your investment-related queries at the earliest. For more investment assistance and articles like this please subscribe to the website. Your valuable feedback is heartily invited in the comments for further improvement.
