NRI Wealth Advisory
NRI Wealth Advisory
At NRI Wealth Management Services, it is our constant endeavour to provide the NRIs the highest standards of services with a view to building lasting and trusting relationships.
We will help you to get an idea of range of Wealth Management Services offered exclusively for NRIs having existing wealth in India and to those aspiring to create wealth in their land of origin.
Non-Resident Indian (NRI)
A non-resident Indian (NRI) is an Indian citizen or a person of Indian origin who stays abroad for employment, business or vacation outside India, or stays abroad under circumstances indicating an uncertain duration.
There are a huge number of Indians who are working abroad or will go abroad one day and work there. Even you might go out of country one day and become an NRI, so here’s a very short, to the point guide for NRI investments.
We are detailing the most important NRI investment options and we’ll focus on four things only – Basic Banking Accounts, Insurance, Mutual Funds and Shares. That’s all. The rules and information here are basic, but further study can be very detailed. Let’s quickly look at some important concepts every person should know.
The first step every NRI should take, is to get the correct Banking accounts opened. Here are the options:
What is a NRE account?
NRE Bank Account is an external savings bank account opened for Non resident Indians and hence called Non-Resident External account. Any money lying in NRE account can be taken outside the country or in other words, the money lying in an NRE account is fully repatriable. This money can be converted into any foreign currency and can be remitted outside the country. For opening these accounts, the funds are required to be remitted to India through any bank from the country of residence of the prospective account holder. The accounts may be maintained in any form e.g. savings, current, recurring or fixed deposit account etc.
What is a NRO account?
NRO bank account is an ordinary saving bank account opened for Non resident Indians. This is why it is known as Non-Resident Ordinary account. You open an NRO account, when you want to transfer money from your overseas bank account to Indian account in Indian Rupees. The money lying in NRO account cannot be taken outside the country or in other words, the money lying in NRO account isn’t repatriable. This is can be in form of Fixed Deposit accounts also.
|Account type||Saving , Current or
Fixed Deposits account
|Saving , Current or
Fixed Deposits account
|Money maintained in which currency||Rupees||Rupees|
(can money be taken outside country)
|Money can be Deposited from||From Abroad through Bank account||India or Abroad|
|Joint Account with Indian Residents||No||Yes|
|Suitable for||NRI’s whose income source is only from abroad||NRI’s how have income source from both India as well as Abroad|
CAN NRI TAKE INSURANCE?
Yes, NRIs can buy Insurance in India; however they have to be present in India, while taking the Insurance. They should therefore plan for buying the insurance when they are on a trip to India. One important point, is that the premiums should be paid from NRE account, if the maturity value is to be repatriable, else only the partial amount will be repatriable,(for which premiums were paid from NRE account). One has to make sure, they have all the necessary documents in place before they come to buy insurance.
- PAN Card
- Income Address proof
- Overseas Proof of Address
- Proof of Income (Salary slip, Bank Statement or ITR for last 3 yrs)
- A seperate form called NRI Questionnaire-Annexure II has to be filled up.
NRI INVESTMENT IN SHARES?
Steps required by NRI’s to start trading in Stock Markets-
- Apply for a PAN card (you can do it online). You will get it within a week.
- Open a NRE/NRO account. You will require this account to fund money for your stock market transactions. Make sure you choose the account carefully, depending on your requirement (Repatriable/Non-Repatriable basis etc.).
- Apply for a general approval for investment in Indian Stock Market through it’s designated bank branch, this is called PIS (Portfolio Investment Scheme).
- Once you have a PAN card, you’ll have to open a Demat account with any bank or a brokerage firm – you will require this for trading.
- Finally, you need to have an online stock market trading account for investing in the stock market directly. Generally, you can get a combo Trading + Demat account at the same place.
Note that NRI’s are not allowed to do intra-day trading (can’t buy and sell on the same day).
NRI INVESTMENT IN MUTUAL FUNDS?
NRIs can invest in all Indian mutual funds, except in funds promoted by Asset Management Companies based in the U.S. (UTI, Sundaram,L & T and SBI) The payment can be made from any of NRE/NRO accounts. If they make payments from NRE/FCNR account, then it can be on repatriable basis (They can take the profit and principal out of country.) But, if they make payment from NRO account then it will be on non-repatriable basis. However, the dividends can be on repatriated. No prior or extra permission, needs to be taken from RBI for this. This is allowed by default.
As one of the fastest growing economies, India offers NRIs a wide range of investment opportunities across a variety of asset classes. With investment opportunities ranging from equity, fixed income, real estate and more, India has continued standing as an attractive investment destination.
NRIs keen to explore investment opportunities in Indian capital markets can choose from various investment avenues such as
– India dedicated Mutual Funds Schemes,
-Portfolio Investment Schemes(PMS) and
– other eligible securities.
Investment offerings however, should be customized to your risk profile and investment objectives.
A person stayed abroad for more than 182 days in a given financial year is considered as NRI.
How to get Started
We have online account activation process to make it easy for NRI’s to get started with their investment journey in India, kindly contact us to start investing.