NRI Investment in Indian Stock Market and Real Estate on the Rise
The Indian stock market and real estate sector are witnessing a surge in interest from Non-Resident Indians (NRIs). These two sectors are becoming increasingly popular investment choices for NRIs. This trend is largely attributed to India's accelerated economic growth, outpacing other nations, and the impressive performance of its equity market compared to developed countries.
Challenges Faced by NRIs
While NRIs recognize the potential of investing in India, they often struggle to formulate and execute a comprehensive investment plan. Many green card holders haven't fully capitalized on India's growth story due to inadequate market evaluation. "NRIs rarely find time from their hectic professional life, they lack proper advice or find handling and monitoring investment transactions inconvenient," observes Anand KS of Nile Financial Planners. Another concern for NRIs is the lack of transparency regarding charges on various trading platforms and other investment avenues. It's crucial for potential investors to inquire about the investment time horizon, associated risks, and potential returns before opening accounts and commencing investments.
Repatriation of Funds
For investments on a repatriable basis, individuals must possess an NRI or FCNR (Foreign Currency Non-Resident) bank account in India. With such an account, the net income or capital gains, after deducting applicable taxes, are eligible for repatriation, subject to regulatory guidelines. On the other hand, for investments made on a non-repatriation basis, only the net income or dividends earned from these investments can be repatriated.