When circling down, one must consider their financial profile and their risk appetite. How much risk are you willing to take, the investment horizon and various other important factors including your tax requirements must be considered
There is a surfeit of options for NRIs to start investing. From fixed deposits to provident funds to direct equities, the basket of investment options is plenty.
If a hands-on approach is what you are looking for, wherein you have full control over where and when to make investments there are other areas of your life you need to take into the equation. For instance, the time zone differences, your current bandwidth – would you be able to manage a portfolio and your job requirements together?
All things considered, here are some of the popular and niche investment options NRI’s can opt for:
Real Estate Investment Trust
The working of REIT is similar to mutual funds. When mutual funds invest in Equities, debt or gold, a REIT invests in real estate projects as the name suggests. For NRI’s looking for exposure to the Indian real estate space coupled with ample liquidity, REITs are to be put on a pedestal.
Conventionally, gaining exposure to this space required large investments, documentations, and all in all the process of buying a physical space was a hassle. By investing in REITs instead, the investor is able to gain exposure to physical real estate assets that are held by the sponsor of the REIT. The rent income from the underlying real estate properties is paid to REIT holders as dividends or interest payments, while the initial capital appreciates are in line with the Indian real estate market expansion.
In India, there are only three REITs compared to 225 in developed markets like the US, and the concept of REITs is relatively new in India. Nevertheless, we advocate investment in REITs if you are looking to add diversified and hassle-free real estate holdings to your portfolio.
https://www.cnbctv18.com/personal-finance/explained-tips-for-nris-to-invest-in-the-long-term-10260911.htm
