India offers a wide range of promising investment options to all categories of investors. However, one can always choose to broaden their horizons and look beyond the boundaries to invest overseas! Just as an NRI can choose to invest in India, resident Indians can also leverage the international markets and enrich their portfolio.
The Liberalised Remittance Scheme (LRS) allows resident individuals to remit up to $250,000 per financial year to another country for investment or expenditure. One can use the remitted amount to invest in shares, debt instruments or to own immovable properties in the overseas market.
Here are some of the popular options for those looking to invest abroad:
- Direct Equity
Resident Indians can choose to invest in shares of companies listed in the USA and leverage the US Equity markets, even from India, through simplified processes. However, you must make sure to research thoroughly before you get ready to pick the stocks.
- Real Estate
Just as NRIs choose to invest in commercial and residential properties in India, resident Indians can also invest in properties abroad, subject to the country’s rules and regulations. While the investment can be capital-intensive, the returns too could be promising.
- Fund of Funds
Fund of Funds is mutual funds that are invested in other mutual funds. Overseas FoFs invest in a global mutual fund that further invests in global equities.
- Mutual Funds with International Stocks & Exchange Trade Funds
Select equity funds have domestic as well as international stocks as part of their package. Globally-focused exchange-traded funds provide an opportunity to diversify your portfolio geographically too.
Investors looking to invest overseas often choose to open and maintain a foreign currency account with a bank outside India. This enables them to remit money over time, up to the permissible limits every year and build a substantial corpus, which can then be used for significant investments.
SBM Bank India offers a unique proposition of 2 World-class Accounts in 1. This comprises of SBM Private Wealth Savings Account and SBM Overseas Foreign Currency Account in the currency of choice. It is an offering that genuinely gives customers the best of both worlds! They get to enjoy attractive interest rates, the finest wealth solutions & lifestyle privileges with the Indian Savings Account as well as have access to international investment opportunities & competitive forex rates with the Overseas Account. It’s just the right offering for resident Indians looking to explore global markets.
If you’d like to know more about our offering, please connect with us here.