Srikanth Meenakshi, co-founder and chief operating officer of the online investment platform FundsIndia.com, shares some tips for Indian expatriates.
What are non-resident Indians mainly investing in?
Most, especially those based in the UAE and the rest of the Arabian Gulf region, mainly remit money into India for the funds to stay invested here. Their intention is to use the money for their need in India, whenever it arises, or for their family in India. Bank non-resident rupee deposits and property are the most common forms of investing for this segment. What NRIs miss out on are the superior market-linked returns that more contemporary products with high liquidity such as equities and mutual funds can provide.
What advice would you offer to NRIs thinking about investing in India?
India offers a tremendous investment opportunity, and the chance to participate in this growth is something that every NRI should take advantage of. Globally, India is primed to be one of the fastest-growing economies over the next decade. Mutual funds in India offer superior returns and great tax advantages.
Are the weak rupee and stronger dollar good news or bad news for Indian expats’ investment portfolios?
This would depend on whether the NRI intends to retain the money in India or repatriate it. It is more important for an investor to look for investment options that deliver well and provide diversification, tax efficiency, liquidity and ease of transacting. If the intention of the NRI is to repatriate the money, then other factors such as tax treatment in the two countries, besides the currency movement (a depreciating rupee at the time of investment and appreciating rupee at the time of repatriating are beneficial) have to be considered.
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