To invest in any market, you need to be educated about what you are doing. You can lose money fast if you do not have the right knowledge. First, you need to know about Mutual funds. They save you from doing all of the research right away. They can help you get profits from investing in India without knowing much about the Indian market. When you invest in a mutual fund from India, what you are doing is putting your money with the money of others that have expertise and you benefit from what they benefit from.
Investing information for American NRIs:
If you are a NRI living in the USA, it is a good idea for you to invest in India. Today, the Indian economy is growing very quickly. If you agree and want to invest in India, then below, is some information on USA mutual funds, NRI accounts, and ADRs.
When you are investing in mutual funds, you do not need permission from the Reserve Bank of India and you can invest via both repatriation basis and non repatriation basis. If you are a NRI investing in a mutual fund, you cannot make the investment with a foreign currency. You must invest with rupees. The best way to go about doing this would be with a rupee check from your bank in India. It is possible for you to send a rupee check from abroad, but for you to invest in India, it is required that you have a bank account in India anyways.
Non-resident Indians have started getting more into pushing back redeemed proceeds from different deposit schemes and, instead, investing them in real estate or stocks. NRIs are taking up equity stakes in various Indian companies and taking up a big part of India’s FDI (foreign direct investment).
It is very important for NRIs to be knowledgeable about the rules and regulations that they would come across while investing in India. These paragraphs are an attempt to teach the information that is needed in a simple form.
The most used route for NRIs investing in Indian companies is the PIS route (Portfolio Investment Scheme). The two stock exchanges listed under this route is the NSE and the BSE in India. Via the PIS route, you have permission to invest a maximum of 5 percent of the positive share in value of debentures of Indian companies. This can be done on a repatriation basis and non repatriation basis.
Based on whether the Purchase was on a repatriation basis and if you local funds were used, your shares that were purchased via the PIS route can be sold by stock exchange and then what remains can be forwarded to other countries besides India.
Being an NRI, you can also, on a non-repatriation basis, freely buy government securities and units of domestic and money market mutual funds. You cannot, however, invest in small savings schemes like PPF..
You can, on a repatriation basis, freely buy government securities, units of domestic mutual funds, and bonds and shares in public sector.
These are all indirect ways for you as an NRI to invest in India. The last way to do so is by investing in an offshore fund that is India Focused. These funds need to invest as FVCI (Foreign Venture Capital Investor) and FII (Foreign Institutional Investor).