What NRIs should know about retirement planning

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India's economic growth continues to be on a healthy track despite the global slowdown of economic activities, like inflation, and geopolitical tensions. With a forecasted growth rate of 7%, India is projected to be the fifth-largest economy in the world in terms of size, as reported by the International Monetary Fund (IMF).It is,therefore, viewed as a secure investment option – not only for Indian citizens but also for Non-Resident Indians (NRIs) who want to expand their investments back in their home country.

Vivek Jain, Head of Investments, Policybazaar.Com says “if you are someone who is settled outside the country but looking for investment plans, especially when it comes to safeguarding your retirement financially, then it is an opportune time. So, from the variety of available options, here are a few plans that NRIs should consider to grow their wealth - A plan worthy of consideration for NRIs, owing to its key feature of a guaranteed return, is the Guaranteed Return Plan. Under this, the investor locks in the rate of return at the time of purchase, making it well-suited for those looking for a safe investment option to meet their retirement goals. In addition, this plan offers a return that, when compared to other investments like FDs or PPFs, is significantly higher, ranging from 6 to 7.5percent, depending on the terms and conditions. Furthermore, it makes them eligible for a GST refund provided they have a non-resident external account in India as an NRI. Therefore, designed for risk-averse investors seeking a secured investment with the attributes of tax benefits and life insurance, the Guaranteed Return Plan makes for a versatile pick.”

The Capital Guarantee Plan is another policy that gives good returns as long as you have a moderate appetite for risk. In this case, a part of the investment—nearly 50 to 60 percent—is invested into debt funds, which thereby secures the principal amount from any risks. The remaining amount, on the other hand, is invested in equity to let them enjoy the favourable side of the market. Besides being a fine blend of insurance and investment products, it further aids in accumulating a sizable retirement fund as it offers tax-free returns and benefits. Additionally, it provides the flexibility of yearly, monthly, quarterly pay-outs, making it a great choice. Hence, if you are looking for a plan that can help you 

To summarize, it is a good time for NRIs to evaluate investment options in India because of India's consistent economic development owing to firmed-up urban consumption and driven by a sustained recovery in spending. The plans mentioned are among the best available options, as they have an aspect of returns as well as protection. However, before investing, it is advisable to examine every plan and its features online. Also, investing early and for the long term will enable accumulating an adequate corpus. So, invest in what suits you best and know the terms and conditions for no surprises and an informed decision. 

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