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NRI Investment Plans
 

Financial planning for life must have a sound investment portfolio. India has become one of the most important and fastest-growing economies globally. Therefore, it provides plenty of investment opportunities for the resident Indians and the NRIs. Moreover, it is diversified across different sectors and is suitable for aggressive and conservative investors.

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 NRI Investment Plans


Financial planning for life must have a sound investment portfolio. India has become one of the most important and fastest-growing economies globally. Therefore, it provides plenty of investment opportunities for the resident Indians and the NRIs. Moreover, it is diversified across different sectors and is suitable for aggressive and conservative investors.

Image Of NRI Life Insurance Desktop Banner


NRIs can benefit from attractive returns and tax benefits by investing in India. While the options for the investments are similar, the NRIs must follow specific guidelines set by the Reserve Bank of India (RBI), the Foreign Exchange Management Act (FEMA), and the Securities and Exchange Board Of India (SEBI). In addition, they must follow the rules set up by the country of their residence. 

Here is a detail explaining the different NRI Investment options in India. But before we get started, it is vital to understand the eligibility criteria for the NRIs to invest in India.


Popular Tata AIA Products for NRI

Non-Linked, Non-Participating, Individual

Life Insurance Savings Plan (UIN: 110N158V10)
 

Tata AIA

Fortune Guarantee Plus

 

*T&C apply
 

  • Plan Options
    Option 1: Regular Income
    Option 2: Regular Income with an inbuilt Critical Illness benefit

  • Premium Payment Mode
    Pay as per convenience using Single / Annual / Half-yearly / Quarterly / Monthly mode of payment.
     

  • Key Features
  • Get Guaranteed* Tax-Free~ Income

    Get your premium back$ at end of income period

    No GST on premium payments through SWIFT/NRE/Forex accounts^

In this policy, the investment risk in investment portfolio is borne by the policyholder.

Unit Linked Individual Life Insurance Savings Plan (UIN: 110L112V04)

  

Tata AIA

Fortune Pro
 

  • Policy Term

    15 to 40 years 

  • Premium Payment Mode

    Pay as per convenience using Single / Annual / Half-yearly / Quarterly / Monthly mode of payment.  

  • Minimum Premium
    Single Pay – Rs 1,00,000
    Regular/Limited Pay – Rs 12,000 per annum
     

  • Key Features
  • A ULIP Plan with all funds rated 4 or 5 stars# by Morningstar%

    Flexibility to choose from multiple Fund options for enhanced investment opportunities.

    Save Tax~ as per applicable income tax laws

A Non-Linked, Non-Participating, Annuity Plan (UIN:110N161V06)
 

Tata AIA
Fortune Guarantee Pension

 


+T&C apply
 

  • Minimum Premium Payment Term
    Single Pay – 1 Year

    Regular / Limited Pay – 5 years 
     

  • Key Features
  • Get guaranteed+ regular income for your retirement

    Single and Joint life option

    No GST on premium payments through SWIFT/NRE/Forex accounts^

    Multiple options are available in this plan: Immediate Life Annuity| Immediate Life Annuity with Return of Purchase Price| Deferred Life Annuity (GA-I) and with Return of Purchase Price| Deferred Life Annuity (GA-II) and with Return of Purchase Price.


Eligibility Criteria for The NRIs To Invest in India


A person investing in India is considered a Non-Resident Indian (NRI) and liable to pay tax if they have Indian citizenship and, however, reside in a foreign destination for reasons such as employment, business, or any other specific intention. 

They are called an NRI if they do not meet the following criteria:

  1. Resided in India for more than 182 days in a financial year.

  2. Resided in India for 60 days or more in the previous year and for 365 days or more during the 4 years preceding the previous year. 

    The eligibility criteria can differ for the individual investment plan option. Some of the primary conditions required are:

    • Age between 18 and 60 years

    • Having a PAN Card and Aadhaar Card

    • Having an NRE or NRO Account for the transfer of funds

  3. Choosing the right bank account is crucial to decide on the best investment plan for NRI in India. The different types of bank accounts that an NRI can have for the transfer of funds are:

    Non-Resident External Account (NRE) - Repatriation of funds to the country of residence is simple with the NRE account. The funds in foreign currencies can be easily transferred to this account in India and utilised for investments. The interest is tax exempted. 

    Non-Resident Ordinary Account (NRO) - Repatriation of funds is difficult with the NRO account, considering the documentation and process. The interest is taxable. It is suitable for depositing funds such as rental income in India. NRIs cannot hold a savings bank account in India. Instead, they can have an NRO account.
     

Best Investment Options for NRIs In India

NRIs can invest in wide-ranging financial investment options in India. Therefore, they have to analyse their personal financial conditions and future financial obligations to decide on the requirements considering the inflation rate. This basic idea of requirements will help determine the risk profile and affordability to find a suitable NRI investment policy in India.

Here are some of the best options for NRI investment In India, categorised based on risk and returns.

  • Better Return NRI Investment Options in India

    There are different types of high-return investment plans for NRI in India. It will vary based on factors such as the risk profile, period of investment, etc. NRI investors can take the guidance of a financial expert to understand the different products, their features, and applicable risks to make a well-informed decision.

    Some of the common high-return investment plans for NRI in India are:
     

    Direct Equity

    NRIs can choose to invest in the Indian stock market. Equity investments can beat the inflation rate and provide higher returns over the long term. NRI investors can purchase the shares of a company listed on the Bombay Stock Exchange or the National Stock Exchange.

    NRI investors need to open a Portfolio Investment Scheme(PIS) Account with a bank to invest in direct equity. The PIS Account will be linked to the Demat Account with a registered broker in India and their Non-Resident Ordinary(NRO) Account or the Non-Resident External(NRE) Account for the transfer of funds.

    Therefore, the NRIs should have the following to invest in the Indian Stock Market:

    • NRE Account

    • NRO Account

    • NRI Demat Account

    • NRI Trading Account with a registered stockbroker.

    NRIs can open a trading account. However, they cannot do intra-day trading and only sell the stocks they previously held.

    Tax implications -The applicable Income Tax is 15% if the investment is sold within one year of purchase and 10% if it is sold after one year of purchase.

    Mutual Funds

    Mutual fund investment plans for NRI are less riskier than investment in direct equities as it is managed by professionals of an Asset Management Company. The NRIs can choose to invest in equity, debt, or hybrid fund options based on their risk profile. Equity mutual funds such as the Large Cap, Flexi Cap, Equity Linked Savings Scheme, etc., provide high returns during the long term.

    Investments in mutual funds can be made using the Systematic Investment Plan(SIP) or the Systematic Withdrawal Plan(SWP). 

    Tax implications - For NRIs, the Tax is Deducted at Source(TDS). The tax rate on Mutual Funds is as follows:

    Type of Fund

    Period of holding 

    Type of Gains

    Applicable tax

    Equity fund

    Less than 1 year

    Short-term capital gains

    15%

    Equity fund

    More than 1 year

    Long-term capital gains

    10% for over ₹1,00,000

    Non-equity

    Less than 3 years

    Short-term capital gains

    30%

    Non-equity

    More than 3 years

    Long-term capital gains

    20%


    It is important to note that investments in mutual funds are restricted to the NRIs residing in the USA and Canada. 

    Unit Linked Insurance Plans (ULIP Plans)

    ULIP Plans are comprehensive life insurance plans that provide dual benefits, life insurance, and market-linked returns. Therefore, it is one of the good investment plans for NRI because they can secure their family in their absence while ensuring the capital appreciation of their investments in India.

    ULIP plans provide the option to invest in the fund options based on the individual risk appetite and requirements. For example, investors can choose between high-risk equity fund options, low-risk debt options, and medium-risk hybrid options. In addition, the policyholders can switch between the fund options during the policy term based on the changing economic conditions.

    Tax implications - The premium paid for a ULIP Policy will qualify for the tax deduction benefit under Section 80C of the Income Tax Act. However, for the policies purchased after 1st April 2012, the premium should be less than 10% of the sum assured.

    On the other hand, the ULIP returns qualify for tax exemption based on the following conditions:

    • Premium should be less than 10% of the sum assured for policies purchased between 1st April 2012 and 1st February 2021.

    • Premium should be less than 20% of the sum assured for policies purchased before 1st April 2012.

    • Premium should be less than ₹2.5 lakhs for policies purchased before 1st February 2012.

    At Tata AIA Life Insurance, we provide varied ULIP Plan solutions. The NRIs can choose between the premium payment options, fund options, etc., and customise the ULIP policy based on their requirements and maximise the applicable benefits. 

    For instance, our Tata AIA Fortune Pro provides multiple fund options to suit investors with different risk profiles.

    Real Estate

    NRIs can invest in residential and commercial real estate properties in India. However, they cannot choose to invest in farms, plantations, and agricultural land.     

    Investing in reputed properties can provide higher returns in the long term and is considered one of the best investment options for NRI. However, it might get difficult to process the formalities, such as the documentation, registration, etc., staying abroad.

    The TDS on the sale of the house property is as follows:

    Time of sales

    Type of Gains

    Applicable TDS

    Less than 2 years of purchase

    Short-term capital gains

    30%

    More than 2 years of purchase

    Long-term capital gains

    20%


    NRIs can claim exemption for the Income Tax under Section 54, Section 54EC, and Section 54F for the long-term capital gains.

    National Pension Scheme

    NRIs can open an NPS account with the aid of a Point of Presence (PoP), a service provider through which they can open and operate the account. It is one of the best investment options for NRI looking forward to planning their retirement in India. Both the NRE and the NRO account can be utilised for the NPS investment. 

    There are two stages in the NPS investment, Tier I and Tier II. Tier I is compulsory,  and Tier II is voluntary. The investors can choose between Active and Auto Choice methods. With the Active Choice investment method, the investors can choose the allocation between equity, corporate bonds, etc. And with the Auto Choice method, the allocation is done automatically based on the age of the NRI investor.

    Some of the key aspects that need to be noted for this NRI investment in India are:

    • For investors under 60 years of age - 80% of the total investment will have to be utilised to purchase an annuity plan at maturity, and the remaining 20% will be applicable for withdrawal. 

    • For investors over 60 years of age - 40% of the total investment will have to be utilised to purchase an annuity plan at maturity, and the remaining 60% will be applicable for withdrawal. If the total investment is ₹2,00,000, the entire amount can be withdrawn.

    Tax implications

    The tax implications based on the Income Tax Act of 1961 are as follows:

    • Salaried individuals - Under Section 80CCD(1), the applicable deduction is up to 10% of the salary, which includes basic pay and dearness allowance. However, it can be up to ₹1.5 Lakhs under Section 80CCE. 

    • Self-employed individuals -  Under Section 80CCD(1), the applicable deduction is up to 20% of the gross annual income. However, it can be up to ₹1.5 Lakhs under Section 80CCE. 

    In addition to these benefits, both the salaried and the self-employed individuals can avail of ₹50,000 under Section 80CCD(1B).

    Tax benefits on maturity - The withdrawal benefit from the NPS investment is tax-exempt at the time of maturity. However, the amount earned from the annuity post-maturity is taxed based on the applicable tax slab rate. Furthermore, partial withdrawal made after 3 years of investment of up to 25% is tax-exempt.

    Pre - IPO Market

    NRIs can invest in the pre-IPO market. Investors can purchase company shares that are yet to be listed on a public exchange. The private companies issue the shares through an investment firm. 

    The units purchased will be deposited in the NRI's Demat account. Pre-IPO investment can provide extremely higher returns if the company performs well in its business operations. However, it is highly riskier considering the unregulated market for unlisted shares.

    NRIs can choose to invest in unlisted shares on a non-repatriation basis. However, they can also invest on a repatriation basis but must report the investment to the RBI. 

    Tax implication - The income earned on unlisted shares will be considered short-term only if sold within two years and will be taxed at the marginal rate.  

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  • NRI Investment Options In India

    Secured investment options provide consistent returns over the long term. They are less exposed to the different types of risks, such as interest rate risk, market risk, etc., and are ideal for conservative investors.
     

    Here are some of the best low-risk investment plans for NRI:
     

    Savings Insurance Plans

    NRIs can consider choosing savings insurance plans. It is a type of life insurance solution that can be used as a child plan or a pension plan. The savings insurance plan provides a life cover for the entire policy term and guaranteed returns as a maturity benefit. 

    As the returns are guaranteed, it is considered one of the best and safest investment NRI savings plans for people having a family in India, and future commitments such as a child's education, marriage, etc., are yet to be planned and accomplished. 

    At Tata AIA, we provide various insurance savings plans solutions, such as Tata AIA Fortune Guarantee Plus (Non-Linked, Non-Participating, Individual Life Insurance Savings Plan (UIN: 110N158V10) which provides flexible premium payment and payout options. For example, the policyholder can choose between the regular income, lump sum options based on his/her needs. 

    Tax Details: The premium paid and the payout benefits will qualify for the tax deduction and tax exemption benefit under Section 80C and Section 10 (10D) of the Income Tax Act of 1961, respectively.

    Fixed Deposit

    Fixed Deposit is one of the best NRI savings plan options for conservative investors. NRIs can have their fixed deposits in the NRE, NRO, and FCNR Accounts. 

    • NRO Fixed Deposit - NRIs can save and maintain income earned in India in Indian Rupees. 

    • Tax details: For the NRO Account, the interest earned is taxable as TDS at the rate of 30%, along with surcharge and cess. However, if it is taxable in the country of their residence, the NRI can claim a tax benefit based on the Double Taxation Avoidance Agreement(DTAA). 

    • NRE Fixed Deposit - NRIs can deposit earnings made in foreign currency that have been converted to Indian Rupees. 

    • Tax details: For the NRE Account, the interest earned is tax-free. However, it can be taxable in the country of their residence. Therefore, it is necessary to check the DTAA based on the country. 

    • Foreign Currency Non-Resident (FCNR) Fixed Deposit - NRIs can also open a FCNR Account to maintain a Fixed Deposit in India. It allows the NRI to save money in the currency form of the country where they live. 

    Tax details: The principal and interest earned are tax-exempt, and the interest rates vary based on the currency in which the funds are held.

    Corporate Fixed Deposits(FDs) or Non-Convertible Debentures(NCDs)

    Corporate FDs or NCDs are debt instruments issued to the public by some high-rated companies to increase their long-term capital appreciation. The investment option will have a fixed maturity date, and the interest earned will be paid to the NRI investor along with the principal monthly, quarterly, or annually. 

    Tax details: The benefit earned here is subject to taxation.

    Public Provident Fund(PPF)

    Public Provident Fund(PPF) is considered one of the best NRI savings schemes for long-term investment. The investors must deposit a certain amount regularly into their PPF account. The interest amount earned and the accumulated fund will be the maturity benefits at the end of the investment tenure. The lock-in period for the investment is 15 years. 

    NRIs can continue to contribute to their PPF Account that they had opened when they were resident Indians. However, it is important to note that they cannot open a PPF account if they have become an NRI.

    Tax details - The investment made in PPF and the benefits earned at maturity qualify for the tax deduction and exemption benefits. However, the deduction in investment is up to ₹1,50,000 under Section 80C of the Income Tax Act of 1961.

    Money market instruments

    The Government and the companies use money market instruments to raise short-term debt for their financial needs.

    They are low-risk and best investment options for NRI with an investment tenure of less than a year listed both in the NSE and BSE stock exchanges.

    The Government of India has permitted the NRIs to invest in these securities, such as treasury bills, on a repatriable or non-repatriable basis.

    Tax details - The returns made from such money market instruments are subject to income tax based on the investor's tax slab. 

    Perpetual Bonds

    NRIs can also invest in perpetual bonds if the issuer allows for the same. The bonds will not have a fixed maturity date, and the issuing company will provide regular returns annually. 

    Tax details - The returns made from such money market instruments are subject to income tax based on the investor's tax slab. In addition, if the NRI investor sells the bond in the secondary market after holding it for one year, it will be considered as Long Term Capital Gains and subject to the applicable taxes.

    PSU Bonds

    NRIs can lend money to a PSU Company and hold a PSU bond. The NRIs will receive the applicable interest on the maturity date. 

    Tax details: The interest earned is tax-free. However, if it is sold after 3 years, the income is taxed at 20%.

    Sovereign Gold Bonds(SGBs)

    Gold is considered one of the best investment options for NRIs in India as it protects against inflation, has a stable price subject to an increase, and is easy to buy and sell. 

    Sovereign Gold Bonds are an alternative to possessing physical gold. The value is linked to the price of gold, and the cash benefit can be redeemed after the fixed tenure. 

    While NRIs cannot invest in SGBs, they can hold it until their maturity or opt for premature redemption that they had purchased earlier when they were resident Indians.

    Tax details - The interest earned from Sovereign Gold Bonds is subject to taxation based on the applicable tax slab. And the income earned on the sale of such bonds will be considered as Short Term Capital Gains or Long Term Capital Gains based on the period held and will be subject to the applicable taxes.

    Bharat Bond ETF

    Exchange Traded Funds(ETFs) are a type of mutual fund investment listed and traded on stock exchanges. 

    The Bharat Bond ETF is an initiative by the Government of India to help satisfy the borrowing requirements of the Public Sector by getting funds from HNIs, individual investors, etc. 

    Therefore, the Bharat Bond ETF will only invest in the bonds issued by PSUs (Public Sector Companies). NRIs can invest in them and are considered a safer investment option. 

    Tax details - The income earned from Bharat Bond will be subject to taxation based on the applicable income tax slab if held for less than three years. And it will be subject to 20% tax if held more than years after accounting for the indexation benefits. 

HNI NRI Investment In India

High Net Worth Individuals (HNI) who are NRIs can also invest in India. The investment opportunities are spread across different sectors such as financial securities investment, real estate, startups, etc. 

Here are a few HNI investment plans for NRI in India.

  • Portfolio Management Services (PMS)

    Portfolio Management Services is a financial service offered by professional portfolio managers. They manage the investor's investment portfolio with the guidance of a research team. It can be related to stocks, fixed income, debt, and other individual securities.

    Unlike in a mutual fund investment, the investor can have individual securities and professional managers to handle the investment. The minimum investment is ₹50 Lakhs. However, the NRIs will have to analyse the costs and risks associated with the PMS before making an investment decision.

     

  • Startups

    NRIs have found investment in startups a good option to increase their returns. The various investment platforms, such as AngelList India, LetsVenture, etc., provide easier access and a streamlined process to invest in startups. The platforms also provide tools for due diligence to evaluate the investments and help mitigate the risks.

  • Alternative Investment Funds

    Alternate Investment Funds are considered one of the best investment plans for NRI that refer to alternate asset classes such as real estate, hedge funds, private equity, etc. These high-quality investments previously available for institutional investors in India are now accessible for the NRIs. AIFs are diversified and provide higher returns. It is regulated by SEBI and the minimum investment is ₹1 crore.

  • Fractional Ownership of CRE

    CRE refers to Commercial Real Estate in India. Fractional Ownership of CRE allows NRIs to invest in highly valued properties that would have been unaffordable. It helps in accessing a portion of the rental income and the appreciation in value, making it an attractive investment option for a passive income. The minimum investment is ₹25 - 30 Lakhs.

  • INVITs

    INVITs refer to Infrastructure Investment Trusts in India. It provides the option for NRIs to invest in infrastructure projects such as airports, roads, power plants, etc. The investors will receive a regular income through dividends and offer opportunities for cost-effective capital appreciation.

How Can NRIs Invest In India?

The process for investing in the different investment plans for NRI varies based on the specific requirements. Here are the few essential steps that can help NRIs to invest in India:

  • Coverage Icon

    Open an NRO or NRE bank account

    NRIs should open an NRO or NRE bank account with an Indian bank to invest in India. It is important to remember that an NRE account should be used for investments using foreign earnings that can be repatriated. And the NRO account should be used for investments based on earnings in India that cannot be repatriated.

  • Policy Tenure Icon

    Apply for and get a Permanent Account Number (PAN)

    NRIs should have a PAN card to invest in India. It is important for various processes such as opening a bank account, investing in the stock market, etc.

  • Flexibility Icon

    Choose the investment plans

    NRIs have different investment options, such as direct equity, mutual funds, savings schemes, etc. They need to compare and evaluate the benefits to choose the best investment plan for NRI.

  • Different Premium Payment Icon

    Complete the documentation and KYC norms

    Prepare the documents specific to the investment plans for NRI and complete the KYC (Know Your Customer) norms by submitting the necessary identity and address proofs.

  • Online Procedures Icon

    Ensure compliance with rules and regulations

    NRIs need to understand the tax implications, rules and regulations concerning India and the country of residence to avoid unnecessary discrepancies in the future. It is always recommended to take the advice of tax consultants or financial advisors to make the best investment decisions.

Why Is Investing In India One Of The Best Options For NRIs?


While there are plenty of investment opportunities in India, it is important to know why it is considered one of the best options for NRIs to help them make well-informed decisions.


Here are some of the reasons to consider the investment plans for NRI in India:
 

  • 01


    Demographics
     

    India is considered to have one of the youngest populations in the world, with an average age of 29. The young population with fewer family financial commitments will have a higher disposable income. Therefore, they are highly likely to spend on their needs and wants, making them active customers for a wide range of retail businesses. It will increase the revenue for the companies and their corresponding stock prices.
  • 02


    Increased awareness about financial investments
     

    With technological advancement, people in India have become more aware of the importance of investments for future financial security. Therefore, people have resorted to investments in various products, such as mutual funds, to enhance their financial condition. As a result, it has indirectly increased retail investments and the value of Indian stock exchanges.
  • 03


    Streamlined markets and processes
     

    The Government has taken several measures to streamline the financial markets and the related processes to make the investment procedures simple, hassle-free and less time-consuming.
  • 04


    Increased corporate investments
     

     Some big brands, such as IKEA, H&M, etc., have established their operations and businesses in India after conducting extensive research about the Indian market conditions. It has increased the potential for investment opportunities in India.
  • 05


    Increased per capita income
     

    India is expected to be one of the largest consumer markets in the world. According to the World Bank statistics, the per capita income has shown a significant increase over the recent years, which means the expenditure on education, health, transport, entertainment, etc., is on a rising trend. People living in rural areas and those belonging to middle-income groups have been showing interest in increasing their standard of living, which is an opportunity for the retail segment to diversify their businesses.
  • 06


    Better economic indicators
     

    According to World Bank data, the key economic indicators, such as the GDP, inflation rate, etc., have proven to be better in the last few years. Having established such strong fundamentals is a boost to the Indian economy.


NRIs can consider these aspects to compare the benefits over the long term to choose the best NRI investment policy in India. It is essential because they can secure their family, increase their financial assets, plan for their retirement and eventually earn good returns.

Frequently Asked Questions(FAQs) About NRI Investment Plans

Who regulates NRI investments in India?

The Reserve Bank Of India (RBI) and the Securities and Exchange Board Of India (SEBI) govern NRI investments in India. And the investments are regulated based on the Foreign Exchange Management Act of 1999.

What are the documents required for NRIs to invest in India?

The documents required for the NRIs to invest in India will differ for the different types of investments. Some of the common documents required are:

  • PAN Card

  • Copy of Passport

  • Recent passport-size photographs

  • Proof of residence outside India

  • Bank statement of the NRE or the NRO Account

  • Power of attorney

Can NRIs invest in the Public Provident Fund(PPF)?

NRIs cannot open a Public Provident Fund (PPF) in India. However, if they had opened it earlier when they were resident Indians, they can continue contributing to their PPF Account.

Are there any tax benefits for the NRIs investing in India?

NRI investments in India are subject to taxation based on the Indian Income Tax Act of 1961. The applicability will depend on the type of investment, the extent of income earned, and the tax rate. However, NRIs can avail of tax benefits such as for the funds transferred to the NRE account where the interest earned is not taxable, tax exemption under Section 54, Section 54EC, and Section 54F for real estate investments, etc.

Can NRIs invest in the Indian Stock Market?

Yes, NRIs can invest in the Indian Stock Market. However, NRI investors need to open a Portfolio Investment Scheme(PIS) Account with a bank to invest in the stock market. 

In addition, they should also ensure to have the following:

  • NRE Account

  • NRO Account

  • NRI Demat Account

  • NRI Trading Account with a registered stockbroker.

What is PIS, and is it mandatory for NRIs to invest in India?

PIS refers to the Portfolio Investment Scheme (PIS). It is not mandatory for all the different types of investments. NRI investors need to open a PIS Account with a bank to invest in the Indian stock market. 

The PIS Account will be linked to the Demat Account with a registered broker in India and their Non-Resident Ordinary(NRO) Account or the Non-Resident External(NRE) Account, whichever is applicable for the transfer of funds. The NRI investors can, however, invest in the primary market, such as in the IPOs using the NRE or the NRO Account without the PIS.

Can NRIs have multiple Demat accounts?

Yes, NRIs can have multiple Demat accounts. It is important to note that NRIs should have separate Demat accounts for the non-repatriable (NRO) and repatriable (NRE) investments. The money received after selling the shares through the NRE account is tax-free and repatriable to the country of their residence. On the other hand, the applicable taxes must be paid and further repatriated for the investments made through NRO accounts.

What are the benefits for the NRIs investing in India?

The benefits for NRIs investing in India are:

  • Wide-ranging investment opportunities are available.

  • Investment plans for NRI are available for different categories of investors, such as based on the risk profile, namely, the low-risk, medium-risk, and high-risk investors. 

  • There are clear regulations and streamlined processes for easy access to investments.

  • Higher returns on the investments.

  • Easy and convenient repatriation of funds

  • India is one of the fastest-growing economies having better key economic indicators contributing to the increase in the value of investments.

  • Tax exemptions for specific investment plans

  • Professional fund managers

What are the different types of NRI investment plans available in India?

The different types of NRI investment plans available in India are:

High Return Options For NRI Investment In India

  • Direct Equity 

  • Mutual Funds 

  • Unit Linked Insurance Plans(ULIP Plans) 

  • Real Estate 

  • National Pension Scheme 

  • Pre - IPO Market

Low-Risk Options For NRI Investment In India

  • Savings Insurance Plans 

  • Fixed Deposit

  • Corporate Fixed Deposits(FDs) or Non-Convertible Debentures(NCDs) 

  • Public Provident Fund(PPF) 

  • Money market instruments 

  • Perpetual Bonds 

  • PSU Bonds 

  • Sovereign Gold Bonds

  • Bharat Bond ETF 

HNI NRI Investment In India

  • Portfolio Management Services(PMS) - 

  • Startups 

  • Alternative Investment Funds 

  • Fractional Ownership of CRE 

  • INVITs  

Are NRI investment plans subject to taxation in India?

Yes, NRI investment plans are subject to taxation in India based on the type of investment, such as equity, mutual funds, real estate, NPS, etc.

Can an NRI purchase a property in India?    

NRIs can purchase residential and commercial real estate properties in India. However, they cannot choose to purchase farms, plantations, and agricultural land.

How can NRIs manage their investment plans in India?

NRIs can manage their investment plans in India by

  • Keeping track of the market trends and being informed of the key performance indicators

  • Staying updated through online news platforms and taking the necessary actions

  • Regularly reviewing the investment platform based on the changing risk appetite and investment needs

  • Choosing the Portfolio Management Services

  • Keeping track of any changes in the regulatory and taxation policies

  • Seeking help from professional financial advisors

Can NRIs invest in Post Office Schemes in India?

NRIs cannot directly invest in Post Office Schemes in India. They should have a joint account with a relative who is a resident Indian to invest in them.

Is a PAN card mandatory for NRIs to invest in India?

Yes, a PAN card is mandatory for NRIs investing and having taxable income in India.

Can Non-Resident Indians invest in mutual funds in India?

Yes, Non-Resident Indians can invest in mutual funds in India. However, it is restricted to the NRIs residing in the USA and Canada.

What happens to my SIP when I become an NRI?

The investor can continue to invest in the SIP after becoming an NRI. There are a few changes that need to be made, such as:

  • Changing the residential status

  • Converting the bank account to NRE or NRO

  • Complying with additional Foreign Account Tax Compliance Act (FACTA) requirements for people moving to US or Canada

 

How can the NRIs repatriate their investments from India?

NRIs can repatriate their investments from India using their NRE (Non-Resident External) Account.

Disclaimers

  • The complete name of Tata AIA Fortune Pro is Tata AIA Life Insurance Fortune Pro (UIN: 110L112V04) - Unit Linked Individual Life Insurance Savings Plan

  • The complete name of Tata AIA Fortune Guarantee Plus is Tata AIA Life Insurance Fortune Guarantee Plus (UIN: 110N158V10) - Non-Linked, Non-Participating, Individual Life Insurance Savings Plan

  • The complete name of Tata AIA Fortune Guarantee Pension Plan is Tata AIA Life Insurance Fortune Guarantee Pension Plan (UIN:110N161V06) - A Non-Linked Non-Participating Annuity Plan

  • *Guaranteed Annual Income” shall be a fixed percentage of the Annualised Premium / Single Premium (excluding discount) payable in a year. Guaranteed Annual Income as per the chosen Income Frequency shall commence after maturity till the end of the Income Period, irrespective of survival of the life insured(s) during the Income Period.

  • +The word Guaranteed and Guarantee means the annuity payout is fixed at inception of the policy and will be payable for whole of life or till death of the Annuitant(s)

  • ~Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfillment of conditions stipulated therein. For ULIP policies, maturity income will be taxable if annual aggregate premium exceeds ₹2.5 Lakh in a financial year. For non ULIP insurance policies, maturity income will be taxable if annual aggregate premium exceeds ₹5 Lakh in a financial year. Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere on this site. Please consult your own tax consultant to know the tax benefits available to you.

  • $Return of Premium Benefit is The Total Premiums Paid (excluding loading for modal premiums and discount) by the policyholder will be payable at the end of the Income Period, irrespective of survival of the life insured(s) during the Income Period

  • ^GST on premium payments through SWIFT/NRE/Forex accounts subject to submission of address proof of foreign residence every year

  • #All funds open for new business which have completed 5 years since inception are rated 4 or 5 star by Morningstar on a 5 year basis as of Mar’2023

  • %©2020 Morningstar. All rights reserved. The Morningstar name is a registered trademark of Morningstar, Inc. in India and other jurisdictions. The information contained here: (1) includes the proprietary information of Morningstar, Inc. and its affiliates, including, without limitation, Morningstar India Private Limited (“Morningstar); (2) may not be copied, redistributed or used by any means, in whole or in part, without the prior, written consent of Morningstar; (3) is not warranted to be complete, accurate or timely; and (4) may be drawn from the data published on various dates and procured from various sources and (5) shall not be construed as a n offer to buy or sell any security or other investment vehicle. Neither Morningstar, Inc. nor any of its affiliates (including, without limitation, Morningstar) nor any of their officers, directors, employees, associates or agents shall be responsible or liable for any traducing decisions, damages or other losses resulting directly or indirectly from the information

  • This product is underwritten by Tata AIA Life Insurance Company Ltd. This plan is not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.

  • Insurance cover is available under this product. For more details on risk factors, terms and conditions please read Sales Brochure carefully before concluding a sale.

  • In case of sub-standard lives, extra premiums will be charged as per our underwriting guidelines. Buying a Life Insurance policy is a long-term commitment. An early termination of the policy usually involves high costs, and the Surrender Value payable may be less than the all the Premiums Paid

  • For ULIP products

    • The fund is managed by Tata AIA Life Insurance Company Ltd. For more details on risk factors, terms and conditions please read Sales Brochure carefully before concluding a sale. The precise terms and condition of this plan are specified in the Policy Contract.

    • Past performance is not indicative of future performance. Returns are calculated on an absolute basis for a period of less than (or equal to) a year, with reinvestment of dividends (if any).

    • Investments are subject to market risks. The Company does not guarantee any assured returns. The investment income and price may go down as well as up depending on several factors influencing the market.

    • Please make your own independent decision after consulting your financial or other professional advisor.

    • Tata AIA Life Insurance Company Limited is only the name of the Insurance Company & Tata AIA Life Insurance Fortune Pro is only the name of the Unit Linked Life Insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.

    • Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. Please know the associated risks and the applicable charges, from your Insurance Agent or Intermediary or Policy Document issued by the Insurance Company.

    • Various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. The underlying Fund's NAV will be affected by interest rates and the performance of the underlying stocks.

    • The performance of the managed portfolios and funds is not guaranteed, and the value may increase or decrease in accordance with the future experience of the managed portfolios and funds.

    • Premium paid in the Unit Linked Life Insurance Policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the Insured is responsible for his/her decisions.

    • Please know the associated risks and the applicable charges, from your insurance agent or the Intermediary or policy document issued by the Insurance Company.

    • IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. THE LINKED INSURANCE PRODUCT DO NOT OFFER ANY LIQUIDITY DURING THE FIRST FIVE YEARS OF THE CONTRACT. THE POLICY HOLDER WILL NOT BE ABLE TO SURRENDER/WITHDRAW THE MONIES INVESTED IN LINKED INSURANCE PRODUCTS COMPLETELY OR PARTIALLY TILL THE END OF THE FIFTH YEAR

    • L&C/Advt/2023/Jul/1945

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