Investment Opportunities for Canadian NRIs In India
The Indian economy has displayed remarkable resilience, particularly in the aftermath of the global pandemic. In recent years, a growing number of foreign investors, including Non-Resident Indians (NRIs), have been expressing keen interest in investing in Indian entities. This trend is not only indicative of India’s economic potential but also underscores the attractiveness of the investment landscape for Canadian NRIs.
Registering for NRO or NRE Savings Accounts
For Canadian NRIs looking to invest in India, the initial step involves registering for NRO (Non-Resident Ordinary) or NRE (Non-Resident External) savings accounts. These specialized accounts facilitate the seamless transfer of foreign earnings to Indian accounts in the local currency.
Investment Avenues for Canadian NRIs in India
1. Mutual Funds: Mutual funds represent a versatile and beneficial investment avenue for Canadian NRIs. To begin the mutual fund investment journey, one must first be KYC (Know Your Customer) compliant. This process involves submitting proof of identity and address, along with a confirmation of compliance with the Foreign Account Tax Compliance Act (FATCA). HDFC Bank streamlines the application process, allowing for swift and convenient online applications. The NRE and NRO accounts can be utilized for disbursing funds and receiving interest and dividends.
2. Offshore Investments: Recognizing the need for diversified investments across currencies and geographies, HDFC Bank collaborates with Indian and global Asset Management Companies (AMCs). This collaboration provides Canadian NRIs with a range of investment options spanning equities, fixed income bonds, and commodities. The offshore investment options offered by HDFC Bank aim to balance risk-return profiles and broaden investment horizons without restricting the scope of investments.
3. Real Estate: Real estate has emerged as a popular long-term investment choice, and Indian residential projects are gaining traction among NRIs. To simplify the home loan application process, HDFC Bank offers a streamlined approach. NRIs can choose a coapplicant for the home loan or delegate Power of Attorney (POA) to a trusted individual, reducing the complexities associated with property acquisition.
4. Fixed Deposits: For risk-averse NRI investors seeking a secure investment option, HDFC Bank’s NRE and NRO fixed deposits present an ideal choice. These deposits allow investors to deposit funds in Indian Rupees and opt for a joint holder, be it an NRI or an Indian. With tenure options ranging from a minimum of 7 days (NRO) to 1 year (NRE) and a maximum of 10 years, these fixed deposits provide flexibility for investors still considering their broader investment strategy.
5. Foreign Currency Deposits: To mitigate foreign exchange rate risks, HDFC Bank offers Foreign Currency Non- Resident Deposits. This investment avenue allows Canadian NRIs to safeguard their Canadian dollars, with both principal and interest fully repatriable. The option to hold the deposit jointly with another NRI further adds flexibility, and the deposit is tax-exempted.
As India continues to showcase economic resilience and growth, it remains an attractive destination for Canadian NRIs seeking investment opportunities. The comprehensive suite of investment options provided by HDFC Bank ensures that NRIs can navigate the Indian investment landscape with ease. By adhering to legal obligations, conducting due diligence, and leveraging the expertise of trusted financial advisor for NRIs in Canada, Canadian NRIs can unlock the full potential of the Indian market and secure their financial future.