Superb Plans of NRI InvestmentBefore investing, non-residents of India should have Indian account. Let’s have a look over the accounts facilitated for them:

Non-Resident External Rupee Account (NRE)

• Earning via Indian origin is transferable freely• USD 1 million is its limit• Repatriation requires CA certification• Foreign funds can be deposited• Interest is taxable• Prime function is to manage earning in India

Non-Resident Ordinary Rupee Account (NRO)

• Convert foreign currency into INR• Conversion rate is given as per prevalent price• Interest and Principal amount can be repatriated• Fixed, savings and recurring a/c can be opened

Foreign Currency Non-Resident Bank Deposits (FCNR)

• Foreign currency can be deposited• Fixed rate of exchanging currency• Can be opened as joint a/c• Maturity period: min. 1 yr & max. 5 yr• Tax free deposition

NRI Fixed Income Investment Opportunities

National Pension Scheme

• It’s the contributory pension scheme.• Regulated by PFRDA (Pension Fund Regulatory and Development Authority)• Valid age-group lies between 18 years to 60 years• Individual account• Joint account not permitted• Online banking facility • Citizenship of India is essential

National Pension Scheme

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• Giving-up citizenship compels for closure of this a/c• Flexibility in investment options • Lost cost investment• Tax benefits under Section 80C• Investment limit for 1 yr: Min.=INR 500; Max.=INR 6,000

• Must have NRE a/c or FCNR a/c or NRO a/c• Interest rate varies • Interest on deposit is tax free• Interest earned on NRO investment is repatriated • Taxable investment

Fixed Deposit

Certificates of Deposit (CDs)

• Non-negotiable model• Maturity period is not less than 7 days and more than 1 year• It is mandatorily repatriated • Rate on return is higher than FD

Bonds

• Long-term investment• These are redeemable.• Fixed rate of interest • Tier-1 capital’s banks are issuer• Lock principal amount for some time

Mutual Funds

• Can be equity as well as debt mutual funds• Debt funds is fixed income securities, including govt. securities, treasury bills,

corporate bonds, money market instrument etc..• The foretold fund is fairly liquid.• Withdrawal can be done at any time.• Capital remains safe.• Return on investment is low.• Equity mutual funds are short-termed.

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