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In Unit Linked Policies, the investment Risk in the investment portfolio is borne by the policyholder.
With Axis Max Life Investment Plans
Written by
Abhishek Chakravarti
BFSI Writer
Abhishek is a financial writer with over 6 years of experience in the BFSI sector. Prior to his current stint with Axis Max Life Insurance, he has worked with leading fintech startups. He specializes in writing about taxation and various investment products like ULIPs, retirement plans, guaranteed investment plans, mutual funds etc.
Reviewed by
Sahil Rawal
BFSI Expert
Sahil Rawal is a digital & brand management specialist with over 10 years of experience in Financial Services Industry. Life insurance professional with expertise in digital marketing strategy, website content marketing and brand communication designed to increase brand awareness, drive engagement & sales.
If you have spent more than 182 days abroad i.e. outside India in a fiscal year, you are classified as an NRI for that year. The investments by NRIs are governed by the rules specified under the Foreign Exchange and Management Act (FEMA) regulations.
Before investing in any asset in India, you must first get a PAN (Permanent Account Number) in India. This is a mandatory requirement as per existing tax laws. You must also go through a one-time Know Your Customer (KYC) process in which you give information about where you currently residence, address in India and other details like resident/citizen.
NRI investors can opt to invest in various instrument in India such as real estate, equity stocks, mutual funds, corporate bonds, government securities, National Pension System (NPS), fixed deposits, recurring deposits, etc. However, for investment purposes in India and for conducting financial activities, you must open a savings or transaction account at a bank branch in India.
NRI investors can invest in their county consider investing in India but are typically undecided. One of the most frequently asked issues is if it makes sense to live abroad and invest in India. Here are a few crucial points that can assist NRI investment in getting clarity and making an informed investment decision in India:
Economy: India is a viable option for NRIs seeking to broaden their investment strategy across global markets. In addition, if the rupee continues to decline, non-resident Indians can take advantage of the favorable currency values by investing in India.
Interest: Compared to most industrialized economies, India's interest rate profits are favorable. Many NRI investors invest in taking advantage of the high-interest rates instead of holding their funds in foreign bank accounts that may not generate interest.
Familiarity with Investments: Many NRI investors are already familiar with the Indian investment structure and Indian markets. Due to their familiarity with investment goods and the financial ecosystem, they are more likely to explore investing in India.
Long-term Goal: Many NRIs who have spent ample time abroad return to India. Many of these remain funded in India to utilize all of their investments when they return to India. With assets in India, it is considerably simpler for these folks to liquidate cash upon their return and when they require funds.
Some of the most popular investment options in India for Non-resident Indians are as follows:
In India, investment is permitted to NRIs, not foreign workers or global corporations. NRI investment in Indian real estate can invest in both residential and commercial real estate. However, NRIs cannot invest in agriculture or farms. The repatriation facility for commercial and residential real estate is limited to two properties and only for the investment amount, not for appreciation.
However, under a $1 million program, the gains from two or more such properties can be repatriated. Additionally, there is no limitation on the number of properties an NRI can invest in India. However, the objective should be to make investment in real estate, not trade.
NRI investors are allowed to participate in the Indian equity and bond markets. NRI can directly invest in equity stocks, various equity/commodities derivatives, government bonds and corporate bonds in India. Alternately NRIs can invest in equities/debt instruments indirectly through equity mutual funds or debt mutual funds. Additionally, any dividends and returns from this investment are freely repatriable.
NRIs may place deposits in the form of NRO (non-resident ordinary), NRE (non-resident external) and FCNR (foreign currency non-resident) accounts with Indian banks. NRO (Non-Resident Ordinary) deposits are non-repatriable investments, and because the interest earned will be credited to the same account, it also carries the non-repatriable designation.
NRE (Non-Resident External) deposit is accessible as repatriable Investment. It is also tax-exempt. Therefore, the interest earned on an NRE account is not subject to tax withholding or deduction. To transfer funds from an NRO Account to an NRE Account, the Indian Income Tax Act specifies specific transfer processes. Apart from this, NRIs can also invest in special fixed deposit and recurring deposit accounts offered by banks in India.
India continues to draw substantial FDI due to the country's promising economic outlook for growth. There isn't an optimum or worst investment so long as your decision is consistent with your needs and objectives. Given the legal complexities, currency conversion, and lack of expertise, locating the ideal NRI investment in India might take a lot of work. NRIs can capitalize on this success narrative and explore investing in India to exploit the country's numerous investment opportunities.
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