Living abroad may prove advantageous to some. An NRI, or a non-resident Indian may earn their living in foreign currency, living and working among the most developed nations on Earth. If you are an NRI, you may very well wonder whether you can invest your wealth in India through an NRI Demat Account. As an NRI, you should understand that India is a developing country and has a thriving economy. Moreover, the nation offers its citizens and Indians living abroad short-term investment options and options to invest for long-term returns. Once you know the basics, you can go ahead and invest in the multitude of investment instruments that are offered in India, but the best of these may be a few for 2022.
A Short Historical Perspective
It doesn’t hurt you to learn a little bit about the recent history of India, from a financial point of view. You may have the best stock advisor in India to guide you, but doing your own homework before investing helps. So here goes with the history lesson … 2021 was somewhat of a mixed bag for Indian investors. For starters, equity markets rose by 20%. Fixed-income instruments resulted in a lull with only 5%-6% returns. Gold prices declined by 7.5%. The only aspect of investment which stood out like a sore thumb was real estate. The market had languished for years, but stood on the heels of a revival last year. So, given all this, what should NRIs invest in this year, in 2022? Stocks and online trading are seeing a boom with IPOs (including the Goliath of them all, the upcoming LIC IPO) flooding the market. It's worth looking into the options for NRIs in 2022.
Best and Safe Investment Options for NRIs
India has given the world enough of a reason to be optimistic about its own economic development. In light of this, and given the performance of certain kinds of investment instruments, here is how NRIs can earn some profit from India:
- Stocks and Equity - Analysts and experts are prone to believe that the rally in stock markets that began around 8 years ago is on the verge of plateauing now. Returns may, therefore, not be as brilliant as they were. There could be a market correction on the anvil. This could take share prices down a notch. If you are interested in the best short-term investment plan with equities in mind, you should book profits partially, redeploying the gains in short-term instruments of debt. If you want to know which stocks will rock and roll, go with tech and auto stocks in 2022, either in direct equity or mutual funds.
- Fixed-Income Investment - As inflation is hitting the roof, it's not wise to put your money into long-term investments just yet. Right now, short-term debt funds are the better way to invest in India in 2022.
- Real Estate - The property market is seeing a new awakening in India, and with prices still low, this may well be the time to invest. Buyer interest within the country is on the uptick, and as the US dollar is rising against the rupee, it may be a ripe time for NRIs to invest in real estate.
Get the Best Broker
As an NRI, you may be thinking of the best investment in India. However, have you thought about the best brokerage to help you? In Motilal Oswal, with diversified knowledge and years of experience, you will not find a better way to allocate your funds. Whether you want to know about the best stocks for options trading or wish to open a Demat account, MO is the place to go.
Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account | Types Of Demat Account & Trading Account