India is known for its diversity. And diversity is prevalent in everything – flora, fauna, history, geography, social norms, tradition, language, religion, etc. And economy is no less diverse. And this is one reason why investors always land in a dilemma when thinking on “where” to invest in India.
Well the first step, if you are facing (or think will face) this dilemma is to analyse your personal need for liquidity, your capacity to take risks and the returns you are expecting.
If you are risk averse, then perhaps the safest mode for you is Fixed Deposit in Banks. You get 7% annual interest. The second best option for you is investing in PPF (Public Provident Fund). All banks have this option and this helps in saving tax too. The investment range is from Rs.500 – Rs.70000.
If you can take a minimal risk, then Mutual Funds and Equity Investments are for you. While you can go in for these online, we advise you to decide with the help of a registered broker, who will not only select the best for you, but will also handle all the paperwork involved. Thus you save time, and get better returns.
As a non-resident, you can become a shareholder of any Indian company. However, if you plan to buy shares in the secondary market, you will have to go through the PIS (Portfolio Investment Scheme) offered by banks.
However, if you wish to make a huge investment, non-residents, are allowed to invest in partnerships or proprietary concerns in India. You can also invest in the education and real estate sector as both are on the rise in India.
We would like to add that while the investments are many, there are also rules and regulations to be followed. Please comply with them and monitor your investments regularly.