Nri Investments -share Market Or Fixed Deposits?

By Author: SamJacob Thomas
Total Articles: 40
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So you are currently away from home and earning your salary in foreign exchange. The last thing you want to do is, let your hard earnt money remain idle. Hence, to get started you need to open a Non Resident External (NRE) account. The main reason why you would you would need an NRE account is that it will allow you to conveniently transfer or convert your foreign currency into Indian rupees. Let us understand the salient features of an NRE account.

• The most important feature of the Non Resident External (NRE) account is that one can conveniently transfer his/her savings to India in a risk free manner

• The interest earnt on this account is tax free!

• This account can be opened only by a Non Resident Indian (NRI) and the joint holder of the account can be either an NRI or a Person of Indian Origin (PIO)

• In case of transfer of funds between borders, there is no cost of transfer

Most major Indian banks have the option of an NRE account for their NRI customers and it ...
... is recommended that they make the most of the benefits it offers.

If you are a novice at money management, and are considering options to park your money, read on to find out what will suit you the best.

1) Share Market: We all know that one of the secrets of wealth creation is in understanding the right way of investing in share market successfully. Well, there is no specific formula to make money in the share market, but it does require you to understand the functioning of the markets and the finer nuances of stock play. Share market offers a person huge scope to generate attractive returns on investment, but the risk involved is also very high.

2) Investments in Fixed Deposits : Fixed Deposits are an evergreen source of investment for people who would not want to take a risk with their money and are happy earning a steady income. Also, the power of compounding will help this class of investors generate good returns over a period of time.

Fixed deposit rates in India are currently favourable for investors who want to invest in a risk free manner.

Hence, based on your risk appetite and lock-in period, decide your investment avenue. All the best!