Non Resident Indians Scope for Investment

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Non Resident Indians Scope for Investment
Words: 323 | Date: Mon, 9 Aug 2010

Indian stock market is the most lucrative investment option that is open to all. This includes all the Indian citizens as well as the Non resident Indians. In order to encourage them in Indian funds and stock market RBI has allowed NRI investment. Besides stock market, real estate is also considered a booming field. Hence, NRIs are encouraged to open up a demat account for their easy bank transactions and trading online. Their investment has been a major boost to the country’s economy as well. And inturn the investors abroad are also getting benefited from this online trading.

Indian IT personnels, paramedical and medical staffs fly overseas in search of a prospective job offer. There’s a lot of scope abroad for personnels from IT and medical field. Hence, a lot of these professionals who are either working on a project or have settled down there, invest in their home country. The investment options open to them are shares, debentures, insurance, mutual funds, certificate of Deposit, real estate. The other forms of deposits that can be considered apart from certificate deposit are bank deposit, company deposits etc. You must have a bank account, which may be offered to you at a zero balance in some banks.

Funds from abroad are maintained in an NRE bank account. This is also known as Repatriable demat account. In this case, the profits or returns from the investment can be taken abroad. Totally, contradictory to the NRE account is the NRO account. In this type of account, the profits earned or interest gained cannot be taken abroad. These are used by the family members such as old parents or spouse at the home country. It is vital to apply for an NRE or FCNR account. Demat account also known as dematerialisation account is important for online trading. If you are looking out to make profits, then you must consider creating such accounts.
Kirthy Shetty, Expert Author.
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