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Unit Linked Insurance Plans (ULIPs)
ULIPs or Unit Linked Insurance Plans are plans that include the benefits of both insurance and investment. ULIP Plans help to create wealth as well as protect the family of the insured after the untimely demise of the policyholder. In the landscape of NRI investment options in India, ULIPs stand out as one of the best investment plans for moderate to high-risk-taking investors.
The investment amount in the ULIP is divided into 2 parts:
Benefits of ULIPs
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It comes with a 5-year lock-in period that helps save money for the future.
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Partial withdrawals can be made after the completion of the lock-in period.
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Offers tax exemptions under Section 80C and Section 10(10D) of the Income Tax Act, 1961^. Add disclaimers
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Offers easy switching between funds facility to investors.
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Allows diversification in the investor's portfolio that helps them in the future.
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Flexibility to redirect future premiums to funds of the investor's choice.
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A guaranteed sum assured is provided to the nominee in case of the untimely death of the investor.
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Provides long-term benefits along with high returns.
Disclaimer: ^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year, and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
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Capital Guarantee Solution Plan
The capital guarantee plan is a secure investment option for NRIs seeking stable returns in India. This NRI investment option in India focuses on safeguarding the investor's principal from economic downturns. In this plan, portion of the invested amount is allocated to debt for capital protection, while the remaining is invested in the equity market through equity funds. One of the significant advantages of the capital guarantee plan, making it an attractive NRI investment option in India, is that upon policy maturity, the investor receives the total investment amount paid by the customer during the payment term along with additional market-linked returns.
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Pension plans
Retirement or pension plans for NRIs are specially designed to safeguard an investor's future after retirement. Pension plans help in creating a financial corpus ensuring that you can maintain a healthy lifestyle even after you have stopped earning.
Retirement Plans:
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Purpose: Income source post-retirement.
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Saving Strategy: Regular contributions during earning years.
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Benefit: Stable retirement life.
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Inflation Protection: Designed to shield returns from inflation for maximum NRI returns.
Annuity Plans:
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Function: Offers regular payouts throughout post-retirement life.
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Accumulation Phase: Regular contribution during earning years
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Post-Retirement: regular income payout to meet your daily needs nad expenses.
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Guaranteed Returns Traditional Plans
Guaranteed Returns Traditional Plans, a popular choice for NRI investment in India, refer to financial products in which individuals invest a certain amount of money for a specified period, and the plan guarantees a predetermined return on the investment. These plans provide a level of assurance to the NRI investor, as the returns are fixed and guaranteed, irrespective of market fluctuations. This makes them a compelling option for non-resident individuals looking to secure stable returns while participating in the Indian financial landscape.
GUARANTEED RETURNS
(Total Sum Assured + Vested or Guaranteed Bonus)
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Child Plan
With India's booming economy, NRIs are increasingly opting to invest in India for superior growth. A child plan stands out as one of the best NRI investment options in India, combining the benefits of insurance and investment. The insurance aspect safeguards your child from unforeseen events, providing financial protection. The investment component facilitates fund accumulation through various funds, ensuring a secure future for your child.
Triple Benefits of Child Plan:
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Insurer pays future premiums after policyholder's death.
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You get tax benefits under Section 80(C) and no tax on returns under Section 10 (10D)
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Insurer pays a certain amount as income to the nominee to meet the daily expenses.
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National Pension Scheme
The National Pension Scheme (NPS) is a voluntary, long-term retirement savings initiative in India, designed to provide individuals with a pension after retirement. It was launched by the Government of India to encourage systematic savings for individuals during their working years, ensuring financial security in their post-retirement phase. NPS is one of the investment options for NRIs in India.
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Mutual Funds
Mutual funds are investment vehicles that pool money from a large number of investors to collectively invest in a diversified portfolio of stocks, bonds, or other securities. These funds are managed by professional fund managers or investment firms. Mutual funds provide individual investors, including those exploring NRI investment in India, with an opportunity to invest in a diversified and professionally managed portfolio.
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Fixed Deposits
Fixed deposits, commonly known as FDs, are financial instruments offered by banks and financial institutions where an individual deposits a specific amount of money for a predetermined period at a fixed interest rate. In return, the financial institution pays the depositor interest at regular intervals and returns the principal amount at the end of the agreed-upon tenure. Fixed deposits are considered a low-risk investment option as they offer a guaranteed return on investment, making them a good choice for NRI investment in India.
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Real Estate
Real estate prices have increased immensely over time. Real estate is a decent NRI investment option in India as it offers long-term returns and growth.
Bank accounts to be used by Non-Resident Indians to buy or sell a property in India are as follows:
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Non-Resident External Account (NRE Account)
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Non-Resident Ordinary Account (NRO Account)
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Foreign Currency Non-Resident Account (FCNR Account)
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Equity Investments
In case an NRI is an aggressive investor, then investing in equity is an ideal investment option. The NRIs can easily invest in India's stock market.
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Portfolio Management Services (PMS)
Portfolio Management Services (PMS) is a professional investment service tailored to meet the needs of high-net-worth individuals (HNIs) who wish to maximise their returns on their NRI investments in India. In this, a professional fund manager is appointed to manage the investment portfolio of the client in accordance with their objectives and risk tolerance.
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Public Provident Fund or PPF
PPF stands for Public Provident Fund. It is a popular long-term savings and investment tool offered by the Indian government. The PPF scheme is designed to encourage savings and investments among Indian residents. Individuals can open a PPF account with authorised banks or post offices and contribute a specified amount annually. The deposited amount qualifies for tax deductions under Section 80C of the Income Tax Act. An NRI cannot invest in PPF. However, if people with current NRI status, opened a PPF account before they got the NRI status, they can continue with the account until maturity
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Bonds and Non-Convertible Debentures (NCDs)
As an NRI, investing in bonds and non-convertible debentures (NCDs) can be a safe and reliable option for generating fixed income. Bonds and NCDs are debt instruments issued by companies, financial institutions, or the government, where investors lend their money to these entities for a fixed period in exchange for interest payments.
Non-Convertible Debentures (NCD)
Non-convertible debentures (NCDs) are a secure and long-term investment option that NRIs can consider. These debt instruments are backed by the assets of the company issuing them.
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Pre-IPO investment
Pre-IPO investment is investing in a company before it goes public. It can offer significant returns, but also carries high risk since private companies may lack oversight and have less financial information available. Investors should conduct thorough research and work with experienced advisors before making any investment decisions.
Generate wealth Earn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^ On premiums (under 80C) and on maturity (under 10(10D))
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