Posts Tagged ‘Investment’
NRI Investment – Smart Choice Executed With Caution
Article by Amitabh kumar
Home sweet home! NRIs swear by this phrase and so when they want to retire, they come back home, to their very own country. Being away from India for too long makes him emotionally attached to it and when he sees the same or superior growth options at home, he tends to rush back at the first opportunity.
With a steady and consistent rate of economic growth and compelling infrastructural developments, India is all set to reclaim its sons.
There are more than 20 million non-resident Indians crossways the world and their contribution to India’s economy is stacked at a sizeable figure of billion annually. And to attract them to come and invest here, the government has opened up all doors with its pro-NRI policies.
Offers for home coming
The Indian Govt. offers various facilities to NRIs (Non-Resident Indians), PIO (Persons of Indian Origin) and OCBs (Overseas Corporate Bodies) to garner foreign investment.
He gets many tax exemptions under his NRI status. The NRI position confers tax exemption on all income attained and received outside India if he is not paid by an Indian company. But he has to pay taxes as applicable if he is earning in India. He is further exempt from paying any taxes on his Indian investments.
On expressing his intentions to permanently settle in India, an NRI is exempt from paying any wealth tax under Section 5(v) of the Wealth Tax Act.
Apart from the monetary benefits, he is also assured by the real estate projects already finished and underway that shall grant him to maintain the same lavish lifestyle he is used to enjoying overseas.
Where and how to invest
NRIs are granted to invest in Indian company shares, shares and convertible debentures under the Portfolio Investment Scheme (PIS), real estate, treasury bills, MFs, bonds, and other Govt. securities. A current policy granted 100 percent NRI investment in real estate.
More and more NRIs are investing in real estate pumping billions into the property market. They are investing mainly in residential properties than in commercial ventures. The realty markets that see maximum NRI investment are those in Punjab, Delhi, Haryana and elite locations like Ghaziabad, Noida in U.P.
However, these investments are subject to applicable guidelines and repatriation restrictions. Investments in India are regulated by Reserve Bank of India through its foreign exchange control regulations and tax implications under the Income Tax Act, 1961, on income generated in India by such investments. The ceiling for investments by NRIs/ PIOs is 10 percent under the Portfolio Investment Scheme. It also grants investment through stock markets.
There are sectors where NRI investment is absolutely barred. These include agriculture, farm home construction and plantations. Otherwise investment policies in India are more captivating than those of taking out money from here.
Investment channels include maintaining a local bank statement or the option of remitting directly from overseas. One can open an statement in either “rupee” or “foreign currency”. The NRI rupee statement can either be an NRE (Non-Resident External) or NRO (Non- Resident Ordinary) account.
The difference between the two lies in repatriation of the Interest income of the account. It is fully repatriable in NRE whereas it is not in NRO. The foreign currency statement is called FCNR and can be maintained as term deposits in choose currencies only: GBP, USD, Euro and JPY.
Keeping a watch on the current policies in effect is advisable so that the sweetness of home-coming lasts long.
About the Author
Amitabh Kumar, a writer by profession has been part of content research team of magazines, journal dealing with NRI, non resident Indian news, stories, and issues. Presently he is content writer in website http://www.nrirealtynews.com emphasizing on non-resident Indians, nri investment in India, invest in India, investment in Indian real estate, nri investment.
More Investment Articles
Knowledge of Investment
Article by chirstopher
Investment is a word which many people are familiarize with. However the in dept knowledge of investment is so deep and broad which after you purchased an investment book and read it, you will come to think that ‘ why I didn’t thought of that?’ It’s so easy and logical when you comprehend it yet it’s difficult to comprehend in certain sense. What exactly is difficult to comprehend in ‘investment’ is that it is extremely versatile. The whole world is running with the word ‘investment.’ Investments are our life from the moment we are born till the day you pass away. Take for example when you were young, you take piano lessons. Your parent ‘invested’ some money into your piano lesson, education fees and when we grew up we will invest our efforts and time in our job. In apiece of these activities there is usually some sort of pay-off further down the track. For instance, if you study hard you should get good grades and if you practice your soccer skills regularly, you will stand a good chance of making the top teams at school.What I’m trying to explain is that these are no different in investing money. Investor’s main neutral is to acquire more money in the future than what they initially started. Basically, they want to have more money than what they started with – in other words “chase larger returns” for their investment dollars.In the financial world there are a wide range of options for investors to seek a monetary return greater than their starting investment amount. If you have 2000 bucks to invest, you are seeking a larger amount in returned the end of your investment period. The higher the risk, the higher the return. The knowledge is so broad that I feel typical people like me or you should know and I would like to point it out here. There are two types of Debt. Good Debt is where you borrow funds to secure a capitally appreciating, income-producing asset. Bad Debt is where you borrow to purchase a capitally depreciating, non-income producing item such as a car, boat or holiday.There are many different strategies for property investing, which suit different people depending on their current income or financial position.A combination of using Good Debt to purchase property and then allowing Compounding to do its work – is probably the most effective way of creating wealth. But this is definitely not a “Get rich swift scheme”, on the contrary it is a “Get rich slowly” scheme which works most effectively over a 10 to 20 year period. It takes patience and perseverance, but after having spoken to dozens of other property investors, many of whom have become multi millionaires within the space of 10 to 15 years, I am certain that it is worthwhile.What are some of the common ways to invest? Buying stocks:
The most easy and straightforward method to invest in stocks is to just purchase them! All you need to do is sign up at a broker and purchase particular companies you decide are the ideal investments. The benefits of this method are you select which companies you believe will perform best. Of course, the drawbacks here are that you might not have enough time to refer which stocks make the ideal investments. It is also sometimes hard to diversify your portfolio, since you likely will not have substantial knowledge on a variety of stocks from various sectors.
Mutual funds:
If you decide you want someone to do the investing for you, think about investing in mutual funds. When you place money into a mutual fund, you are pooling your money with other investors and allowing professionals to invest it for you. The advantage here is that you do not have to follow your investments yourself, since someone else is doing the work for you. Also, mutual funds tend to purchase hundreds or even thousands of stocks, so even just buying one mutual fund can give you diversification. The drawback is that most mutual funds under perform the market (due to fees and quality bloats), so most of the time you are actually superior off just randomly picking stocks yourself!
Exchange Trade Funds:
An ETF is like a mutual fund, except it passively tracks an index like the S&P 500. The advantages of the ETF are the same as the advantages of the S&P 500. Also, since ETFs just purchase whatever stocks make up an index, they have lower fees than mutual funds. However, by its nature, an ETF will never beat the market since it just attempts to mirror the market. ETFs have become increasingly favourite though since many investors have become disillusioned with mutual funds.
About the Author
hi im christopher. im very interested in investment and so have been doing research for it. i will occasionally write news and articles about current invest and the trend. please do drop by to my blog here. http://yeoworld.blogspot.com/
Related Investment Articles
How to Develop a Sound Investment Plan
Article by Rob Forbes
It has been stated that to change to plan is to plan to fail. To be successful at investing, you need to have a well thought out plan that sets into place your basic value system, your objectives and a variety of investment types and strategies.Every mortal reading this article will be living, working and investing in different circumstances, with mind boggling possibilities for variation.
For example:
One mortal might have a full time job, but invests part time; Another might run a small business, with investment on the side; Yet another might invest full time, as a business.
However, very few of us get to begin full time investing right away – we just don’t have the capital. So, what to do? You need to develop your own long term Investment Plan – one that will grant you make changes in your circumstances and lifestyle. Each plan must be different, and your plan needs to be flexible. Here are some principles that you can use to develop your own plan: * Don’t quit your day job until you have built up adequate capital to weather the inevitable draw downs that each investor has to go through. Don’t live in the stupidly false hope that it won’t happen to you – it will! Take this as a given, and plan for it! * Begin with a relatively low risk, but steady investment strategy (like selling options). Save the windmills (like buying options) for when you have the time to really focus on your investments. Once you have built up your capital with a relatively innocuous (and boring) strategy, begin branching out into more fun stuff! * Diversify your investments, at several levels. Invest in different types of investment cars like stocks, bonds, CDs, mutual funds and dividend earners. Use different investment strategies, in ways that match your lifestyle, time allocation and risk tolerance. Think about long term position trading, momentum trading, swing trading, selling options (like credit spreads and unclothed puts), buying options (buying puts and calls or Deep-in-the-money options). Allocate your portfolio to different TYPES of investments and different STRATEGIES of investment. * Add an extra leg to your income generating efforts. If you have a full time job, then begin a small business on the side – one that can run itself once you have set it up. Unless you really need this money, use the income from this business as seed money for your investment portfolio. * Don’t get concerned with investing. Invest for a purpose, not just to get rich. Use the money to GET A LIFE – preferably with your family. The classics are too full of stories and histories of people who end up hugely rich, but divorced, forsaken by their children, rejected by their friends… and so on. Investing can swallow a mortal up, and unless you keep a massive perspective, you can drown. * GET OUT OF DEBT! Why pay interest to someone else, when you could be investing that money. I am speaking about all kinds of debt….credit card, mortgage…everything! Add up all the interest that you have paid this year, then work out how rich you would be if you had taken that money (instead of making someone else fat) and invested it in plan that gave you a good return. The result will shock you! * Be generous!!! History shows that generous people are always much superior off and much happier than the other kind. Remember: those who change to plan plan to fail. The cliche is old, but truth remains!
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About the Author
Rob Forbes is a World Citizen with a wide variety of interests and expertise. A wildlife ecologist by profession, he currently lives in Asia, where he is the director of a small humanitarian aid organisation that specialises in education projects, leadership training, family development, small business development and investment.