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NRI Services
12 min read
November 15, 2024

NRI Investment Options in India: Mutual Funds, Stocks, Property & More

Complete guide to investment options available for NRIs in India

Top NRI Investment Options

NRE Fixed Deposits
Safe and tax-free returns
6.5-7.5%
p.a.

Tax-free, fully repatriable

Mutual Funds
Market-linked growth
10-15%
p.a.

Equity/debt options available

Real Estate
Property investment
8-12%
p.a.

Rental income + appreciation

Stocks
Direct equity investment
Market-linked

High risk, high returns

NRE vs NRO Account

Feature
NRE
NRO
Source of FundsForeign incomeIndian income
Tax on Interest
Tax-free
Taxable (30%)
Repatriation
Fully repatriable
Limited
Joint HolderOnly NRINRI or resident

Tax Implications for NRIs

Tax Implications for NRIs
Understanding tax rates on different incomes

NRE FD Interest

Completely tax-free

NRO FD Interest

30% TDS (plus cess)

Rental Income

30% tax rate applicable

Capital Gains

Same as residents (LTCG/STCG rates apply)

Best Strategy for Different Goals

1-3 years
Short-term Goals

NRE Fixed Deposits, Liquid Funds

3-7 years
Medium-term Goals

Balanced Mutual Funds, Debt Funds

7+ years
Long-term Goals

Equity Mutual Funds, Real Estate

FEMA Compliance

NRIs must comply with Foreign Exchange Management Act (FEMA) regulations:

  • • Cannot invest in agricultural land or plantation property
  • • Can buy residential/commercial property (up to 2 properties)
  • • Must route all investments through NRE/NRO accounts
  • • Repatriation limits apply on certain investments

Need Expert Help?

Get personalized guidance from CA Ashama Rajawat on your specific tax situation.