1. Can NRIs in Canada invest in Indian mutual funds?

Yes, NRIs in Canada can invest in most Indian mutual funds. You simply have to open an NRI or NRE account. Next, complete your KYC details, and make sure to understand the tax implications between your residence country and India to proceed further successfully.

2. Do NRIs need a PAN to invest in India?

Yes, NRIs now must have a PAN to engage in any kind of financial transactions in India. This also includes making investments.⁷

3. What about double taxation in the case of NRI investments?

In the case of NRI investments, Individuals may avail the benefits of a Double Taxation Avoidance Agreement (DTAA) in case India has signed the agreement with their present residence country. This allows you to avoid paying the same tax twice, offers tax relief, and prevents double taxation. 1

4. What are some top Indian investment plans for NRIs in Canada?

Some of the Indian investment plans for NRIs in Canada include mutual funds, PPF, savings insurance plans, money-back insurance plans, and more.

Investment Plans for NRIs in Canada: Grow Wealth Securely

Calling From	Phone Number
Calling us from INDIA	+91 20 6712 1212
Rest of the World	+91 20 6787 1700

Keep these Documents Handy
Photo	Colored Photo
PAN Card	PAN Card/ Form 60
Age proof (Any one)	Passport Aadhar card Driver’s License Birth Certificate Baptism Certificate of PAN card
Income documents (Any one)	Last 6 months Bank statement with salary credit Form 16 Last 3 years ITR with Computation of Income (COI) Last 3 months salary slip + Last 6 months bank statement showing salary credited
Address proof/ID proof (Any one)	Passport Aadhar card Voters ID Driver’s License

India’s growth and industrial development in recent days have been massive. Result? The country is now able to attract new foreign direct investment (FDI). Also, convincing NRIs about the suitability of India as a profitable destination to invest and grow. Further, the government of India is making consistent efforts to make business more inclusive and prosperous, giving you a variety of options to look out for.

With several investment avenues available, it might get a bit confusing to pick out the best investment options. Well, worry not. Here is a list of some popular types of investment plans that NRIs in Canada may consider exploring.

RI investment options with high risk
1. Direct Equity
  
  NRIs invest in the Indian stock market directly for higher returns associated with risk over the long term. NRI investors can purchase the shares of a company listed on the National Stock Exchange, Bombay Stock Exchange or both.
2. Mutual Funds
  
  NRIs can also invest in mutual fund options, which extend to equity, debt, or hybrid fund investments and are managed by professional asset managers. Investment in mutual funds for NRIs can be more convenient and profitable over the long term.
3. Real Estate
  
  NRIs can also invest in commercial and residential real estate properties in India and get higher returns in the long term. Investment in real estate is considered one of the best investment options for NRIs.
4. National Pension Scheme
  
  The NPS is a long-term retirement savings scheme that allows individuals to contribute regularly towards their retirement savings while they are employed. It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and is one of the best investment options for NRIs planning their retirement in India.
NRI investment options with low risks
1. Savings/ Endowment Insurance Plans
  
  NRIs looking for investment options in India with low risk can consider investing in savings or endowment insurance policies, which offer the dual benefits of life insurance coverage for the entire tenure of the policy and a savings element. The plans provide a death benefit if the life assured passes away during the policy tenure. This helps the family meet the financial loss suffered and meet its financial goals. On the other hand, if the life assured survives the policy tenure, a maturity benefit is paid. This benefit creates a savings corpus that allows policyholders to plan for their financial goals. Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCI) can purchase life insurance to ensure their loved ones stay financially secure
  
  Endowment assurance plans can also be offered as child plans or pension plans, which help you plan for specific goals.
2. Money-back Insurance Plans
  
  Money-back insurance plans are like endowment plans but with a difference. Under these plans, the sum assured is usually paid in the form of instalments at specified intervals during the policy tenure. This payment is called the money-back benefit, and it creates liquidity under the policy. The death benefit remains undisturbed and is paid in full, irrespective of the money-back benefits paid under the plan. On maturity, the remaining sum assured is paid. Money-back plans might be offered as participating plans which earn bonuses. The bonus additions help enhance the benefits of the policy and create a good corpus for your financial goals.
3. Fixed Deposit
  
  NRIs can also park their funds in fixed deposits to earn interest. Fixed Deposit is ideal for conservative investors. NRIs can choose to invest in NRO Fixed Deposit accounts, NRE Fixed Deposit accounts or Foreign Currency Non-Resident (FCNR) Fixed Deposit.
4. Public Provident Fund (PPF)
  
  PPF is a long-term savings scheme backed by the Indian government that offers fixed, guaranteed returns higher than regular savings accounts and tax benefits. NRIs planning for long-term financial goals such as their retirement or their children's education, can benefit from accumulation in PPF. The NRIs cannot open new PPF accounts but can continue their existing PPF accounts until maturity, if any.
5. Money Market Instruments
  
  Money Market Instruments are short-term financial instruments such as Commercial Papers, Treasury Bills, etc., involving lower risk and high liquidity. NRIs are to invest in these securities on a repatriable or non-repatriable basis.
6. Perpetual or PSU (Public Sector Undertaking) Bonds
  
  Perpetual bonds are bonds which cannot be redeemed but offer steady interest payouts. They do not have a fixed maturity date but offer regular returns. PSU Bonds are bonds issued by Government enterprises offering fixed rates of interest and involve low risk. These bonds generally have a long-term maturity period.
7. Sovereign Gold Bonds (SGBs)
  
  SGBs are government securities denominated in grams of gold. These bonds are a substitute for holding physical gold. The value of the SGBs is linked to the price of gold, and the cash benefit can be redeemed after the specified fixed tenure
NRI investment options for High Net Worth Individuals (HNIs) in India
1. Portfolio Management Services (PMS)
  
  Portfolio Management Services is a professional financial management service offered by professional portfolio managers to HNIs. They manage the investment portfolio of the clients under the research team’s guidance. Portfolio management services can be related to stocks, debt, and other securities.
2. b) Alternative Investment Funds
  
  AIFs are investment vehicles which collect funds from investors to invest the amounts in different asset classes such as private equity, real estate, hedge funds, etc. It is considered one of the best investment options for potential high returns.
3. Start-ups
  
  NRIs can invest in early-stage companies with innovative business models and high growth potential to increase their returns. Investing in start-ups is a good option for HNI NRIs to gain from the growth of these start-ups.
4. Fractional Ownership of Commercial Real Estate (CRE)
  
  Fractional ownership of CRE allows HNI investors to invest in high-value commercial properties with a limited amount of investment. It enables them to own a property partly and invest in India’s real estate sector.
5. Infrastructure Investment Trust (INVITs)
  
  INVITs are investment vehicles which provide NRIs with an option to invest in developing infrastructure projects in India.

India, today, stands as one of the most favorable investment markets. Why, you ask? Well, not only does it have a robust stock market valuation, an economy that is vibrant, and a solid workforce, but it also offers much more than that. For instance, it allows for portfolio diversification, helps with risk mitigation, has long-term growth potential, offers optimal returns, and so on.

Here are some compelling reasons as to why and when you may consider buying these NRI investment plans.

For Retirement Planning

18% of Canada-based NRIs choose to invest in these investment plans in India with retirement planning in mind.⁵ Investing in India for retirement planning can help you earn these advantages:

Indian markets have historically offered comparatively better returns than other countries. Plus, the risk is lower without compromising the returns, helping you accumulate wealth.
- Investing in Indian rupees while earning in Canadian dollars can help you with a currency conversion advantage when planning your retirement in India.
- Indian investments are cost-effective, helping you better plan your retirement.
For Wealth Preservation

Many of the Canada-based NRIs invest in India for wealth preservation. The reasons are simple.⁵
- Asset allocation in India across different sectors and economies can help diversify your portfolio.
- India has assets like gold that are considered a safe investment.
For Education Funding

4% of NRIs in Canada invest in India for education funding. Here is why:
- Early investment in high-potential investments can help cover future education costs.
- If your little one plans to study back in India for higher studies, investments can simply fund their education without any need for forex conversion.