Financial planning is one of the most important things to do in today’s time for both, the Indian Residents and the NRIs. India due to its growing economy has attracted many FDIs in the past two decades, as a result, many NIRs have started investing in India. There are varied options available for the NRIs that can be considered while they plan to invest.
Best Investment Options for NRIs in India
Some of the best investment options for the NRIs to invest in India are as under:
Unit Linked Insurance Plans (ULIPs)
ULIPs or Unit Linked Insurance Plans are plans that include the advantages of both insurance and investment. This insurance plus investment plan helps in the formation of wealth and also protects the family of the insured after their untimely demise. This plan is becoming very popular among investors these days.
Capital Guarantee Solution Plan
The capital guarantee plan is an investment that focuses on safeguarding the investor’s principal from any losses when there is an economic downturn. Under the capital guarantee fund, the fund company absorbs any losses experienced by the underlying investment. Basically, Capital Guaranteed Plans are ULIP plans that are a combination of insurance and investment. Under this plan, 50-60% of the amount invested goes into debt for capital protection, and the remaining amount is invested in equity. The plan comes with a policy tenure of 10 years along with a premium-paying tenure of 5 years.
Retirement Plans
Retirement plans are policies and plans that are specially designed to protect an investor’s future after he retires. Retirement plans help in creating a financial corpus for an investor, which makes sure that they maintain a particular lifestyle, even after they have stopped earning.
Guaranteed Returns Traditional Plans
Guaranteed Return traditional plans are one of the oldest insurance plans. There are certain benefits that are covered under this plan:
Guaranteed fixed returns
Complete risk coverage
Life protection
Tax deduction benefits
Guaranteed return traditional plans are highly preferred for investors not having a considerable risk appetite. Total Sum Assured + Vested or Guaranteed Bonus is provided to the investor at the time of maturity of the plan. The main feature of the Traditional Plans is that the investor is not directly linked to the market and therefore, only has to enjoy the maximum returns provided by the plans without worrying about market fluctuation.
Child Plan
Due to the high economic growth, more NRIs are wanting to invest their money in India for better growth. A child plan is one way of making investments in India and protecting your child’s future.
A child plan is a mixture of both, insurance and investment. The insurance part helps in protecting your child against any mishap, such as your untimely demise. Along with this, it ensures that your child receives a fixed annual payment from your insurer, as per the terms and conditions of your policy.
Conclusion
Investment opportunities are growing every past day due to the increase in globalization. Non-Resident Indians willing to invest their money in their home country have many more choices to select from these days than in the past. Investing in India comes with a wide range of options, but it is advisable to understand the investment before going forward.
One should keep in mind their finances and savings before investing. Also, it is important to understand the investment options before going forward with the investment.