The Indian economy has exhibited impressive growth in recent years, which is good news for investors. International investors deemed India to be a promising investment hub. Furthermore, the government of India has allowed some relaxation in the laws of NRI investment, and as a consequence, Non-Resident Indians now have a variety of choices for increasing their wealth by investing in India.

However, there are several requirements that the NRIs must fulfill to invest in India. To do transactions of any sort in India, a Non-Resident of India must open an NRI account. With the help of this account, NRIs through net banking or online banking, can transact money in India and also invest their money which seems profitable to them.

Here are the top 5 investing options for NRIs to park their cash and earn a return on investment.

Fixed Deposits
Fixed Deposits (FDs) are an all-time secure investment option that is popular among both Indian natives and NRIs. NRIs can invest in fixed deposits with their preferred bank or non-banking financial institution. To invest in an FD, an NRI must create an FCNR (Account for depositing foreign currency earned in India) and an NRO account in their name, as stated earlier. Even though fixed deposits are one of the safest investment alternatives, the interest rate on FDs is not as appealing as the interest rate on NRO investment options. However, if you are a senior citizen, this may be the greatest option considering the safety it offers in regard to the market fluctuations.

Mutual Funds
Non Residents of India can also invest in the stock market of India. But in order to do so, they must first create a Portfolio Investment Scheme, which is popularly known as a PIS Account. A PIS account can also be linked to a Demat account, which can be opened with any Indian licensed stockbroker. No doubt, long-term gains in the Indian stock market are substantial, but they are also accompanied by volatility. Equity investments have the ability to outpace inflation and increase an NRI's wealth. Because the risk of investing in the stock market is larger than that of FDs and PPF, one should always make well-informed decisions. NRIs can create a trading account as well, but they cannot trade the stocks. They can only sell the stocks that they have already received.

Public Provident Fund (PPF)
Another safe investment option for NRIs in India is the Public Provident Fund (PPF). The Government of India has sanctioned this scheme, which provides a decent interest rate of 7.1 percent every year. It is an excellent option if you want to secure your investment for a set period of time. The scheme has a maximum lock-in term of 15 years. The IT Act also exempts investments from all taxation. The restriction here is that you can only invest up to INR 1, 50,000 every year. As a result, those intending to make substantial investments might find the ceiling to be too low.

Real Estate
NRIs have the option of investing in both residential and commercial real estate.
They can loan the amount in India to purchase the property. NRIs, on the other hand, cannot invest in farms, agricultural property, or plantations. If you make calculative decisions and invest in reputable properties, you can expect to earn big profits in the future. The best aspect about investing in real estate properties is that they are not impacted by changing trends and market fluctuations, making them a popular investment option not just for the NRIs but also for Indian nationals. Since NRIs cannot stay back to look after and take care of the property they have invested in, they need to hire someone to do so.

Government Securities
Non-resident Indians can now invest in government securities and T-bills on a repatriable or non-repatriable basis, according to the Indian government. The primary benefit of investing in government securities is that it is risk-free. Secure transactions ensure that the returns are safe and risk-free. Investing in government securities might also help an NRI diversify his or her financial portfolio. Having such investments in one's portfolio greatly reduces the portfolio's overall risk factor.

Bonds
NRIs can also invest in different bonds, such as PSU bonds and perpetual bonds, provided the issuer permits it. For a few years, the government has also begun to offer tax-free bonds to NRIs.
These were some of the best investment options for NRIs. However, they must make a wise and calculative decision depending on the market scenario to get the desired returns on their investments.

For More Information.
Visit: https://nraccount.indusind.com/