Can Canadian NRIs invest money in India? Check popular investment options

The NRIs interested to invest in India need to have an NRO or NRE account. These accounts help the NRIs to transfer their foreign earnings to Indian accounts in Indian currency.

Canadian NRIs can invest in a wide range of instruments in India.

The Indian economy has demonstrated great resilience especially after the pandemic. In recent years many foreign investors, including NRIs, are showing interest in investing in Indian entities. A sizable number of Canadian NRIs are believed to have invested in India.

The NRIs interested to invest in India need to register themselves for an NRO or NRE savings accounts. These accounts help the NRIs to transfer their foreign earnings to Indian accounts in Indian currency.

Investment options in India for Canadian NRIs

Here are some of the ways in which a Canadian NRI can invest in India.

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Mutual Funds

To invest in a mutual fund, one needs to be KYC compliant as this process helps in establishing the identity of the investor. For getting the KYC compliance done, a NRI requires a couple of documents which include proof of identity and address, and a Foreign Account Tax Compliance Act (FATCA) confirmation. Mutual funds are always considered to be a beneficial option for investment as they help to diversify the investments and risks in a dynamic financial market.

Fixed Deposits

NRIs, who are not comfortable investing their money in risky instruments, and looking for safer investment options, fixed deposits are the best options for them. Fixed Deposits allow the investor to deposit money in Indian Rupees and choose a joint holder which can be a NRI or even an Indian. The tenure for FDs ranges from a minimum of 7 days in case of NRO and 1 year in case of NRE accounts, to a maximum time of 10 years.

Foreign Currency Deposits

If the Canadian NRI is willing to avoid any foreign exchange rate risks, they can go for a Foreign Currency Non-Resident Deposits where the principal and interest are going to be fully reparable and can also be held jointly with another NRI as well. Additionally, the Foreign Currency Deposit is tax exempted.

Real Estate

As many people around the world prefer investing in real estate as a viable long-term investment option, investing in an Indian residential project has also become popular amongst the NRIs. If an investor is worried about the long process of acquiring a real estate property in India, they can choose a co-applicant for the home loan while investing in it.

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