The Non-Resident Indians are the people who are of Indian descent but who settled in foreign countries with their relatives. The global economy is rising rapidly, and the Indian market is growing too. And the NRIs are getting more involved in making their financial investments in India.

In which sectors can the NRI opt to invest their money?

·         Fixed Deposits in Banks: While the NRI cannot open a bank account directly in Indian banks in compliance with the RBI rules, they do have special provisions. They can open a Fixed Deposit
account through three different types of NRI accounts
in Indian banks. Such various categories of accounts are – Non-Resident
External (NRE) account, Non-Resident Ordinary (NRO) account, and Non-Resident
Foreign Currency (FCNR) accounts.

·         Mutual funds:  The NRI investment can be made into any of the three forms of accounts in the mutual funds. The individual must invest in Indian currency and pay the funds directly through
the accounts or through cheque of that account. The return rate is the same for
the Indian and NRI citizens. They can easily open NRI account online
to carry out investment transactions.

·         Direct Equity Investment: This is a direct investment by the NRI into Indian company stocks. The RBI carries out this NRI investment within the framework of the Portfolio Investment Scheme
(PINS). Under PINS, an NRI person can get permission from the RBI and can
invest directly in stocks and equities. The individual must have their NRI
accounts in Indian banks. The NRI has several other restrictions on investing
directly in Indian equity.

·         Real Estate: The real estate transactions may be done throughout the country by the NRI if they own a property in India. For you, it is an attractive investment choice. There
are no restrictions concerning the properties that you can buy or sell. But
they must follow the rules laid down in the Foreign Exchange Management Act.

·         Investment in the government securities and the bonds: It is easy to invest in, and the guaranteed returns on the investment are also given. In the form of a lender,
the NRI can invest in the bonds and government securities. Unlike stocks, they
will not have ownership over the bonds or government securities. If the
investment is made from the NRE or FCNR accounts, then the returns are
transferred easily to the country you live in.