The last few months have witnessed a continuous increase in NRI investments
in India. The need to invest money is not the same what it has been
earlier. With increasing NRI population, the profile of remittance
is no more limited to consumption. It is fast changing into the investment
mode.
Professional NRIs are always scouting new prospects to expand their area of business knowledge. As they settle in foreign countries, they begin to learn dealing with life in new situations by using power of their observation.
Financial Matters: As far as financial matters are concerned, NRIs prefer to consult with their friends or relatives, who have similarly built their understanding. However, their decision is also based on their understanding of NRI tax savings laws, which should not be the only criterion.
Lack of Financial Planning: Financial planning is most required when you step into any business. Then, there are the factors preventing NRIs to seek the expertise of any local financial planner. This generally includes high fee structure, lack of sources, high commissions that can disturb budget of any individual earning limited money. Also, financial planners abroad cannot be of much help to NRIs as they can be less trusted regarding their knowledge about rules and regulations for NRI investments in India.
Limited Institutional Support: Although, most companies have provisions to train their employees regarding finance management but there are no training programs which can inform the employees about managing their finances. Let’s talk about for the self employed professionals, like doctors, who may not have corporates to guide them. With limited insurance knowledge, proficient NRIs may not be aptly covered.
Special Cases: NRI professionals face a number of hurdles while planning their finances. Talking about short deputation, no NRI is being paid the Indian salary. Therefore, no money goes toward the employee provident fund, stunting the retirement corpus development. Also, short deputation can result into filing tax returns in two or more countries which can be both technically as well as emotionally challenging.
All these factors and limited support on financial planning restrict NRI funds in local savings account. Also, there is a plethora of choices available to NRIs to make investments. They can ponder over to make investments in stocks, shares and NRI mutual funds, and purchasing property.
