BackA fourth of NRIs in US, Canada view India as a destination to earn higher returns: survey
NRIs have diversified their investment with multiple asset classes, with around 25% of NRIs preferring to invest in mutual funds while 20% keeping their money in fixed deposits
PremiumNEW DELHI: Non-resident Indians prefer to keep their savings overseas and view India as a destination to earn higher returns, according to a survey by SBNRI, an NRI-focused wealth management fintech platform. It conducted a survey to find out how NRIs from different countries view India as a choice for investments to create wealth.
As per the survey, NRIs have diversified their investment with multiple asset classes, with around 25% of NRIs preferring to invest in mutual funds while 20% keeping their money in fixed deposits.
Over 15% of NRIs are more interested in Indian commercial real estate. This fulfils their emotional need to stay connected to their home country, simultaneously, leveraging the fall in rupee value. The depreciating Indian rupee against the US dollar provides high rental yields and the emergence of fractional ownership is opening doors to all types of NRI investors in the commercial real estate space, added the survey report.
Besides, 13% of NRIs consider asset financing as one of the most preferred investment options in India. The survey also highlights pre-IPO and basket of stocks as the least considered investment option by NRIs, making up to 10% and 6%, respectively.
NRIs have been eyeing investment opportunities in India from across the world including the US, Canada, the UK, Singapore, UAE, Australia, China, Qatar, Malaysia, Germany, New Zealand and Kuwait.
However, as per the survey, NRI investment pattern varies from geography to geography. About 25% and 22% of US and Canada-based NRIs, respectively, are willing to invest in high-risk investment asset classes like micro venture capital funds in India. This is because India is viewed as an emerging country. Due to this, NRIs prefer to keep their savings in the US and Canada, and view India as a destination to earn higher returns, hence highest interest is investing in Indian startups, the report highlighted. Whereas 22% of UK and Singapore-based NRIs are more interested in the Indian real estate market, especially commercial followed by NRE deposits.
Talking about nations like UAE, 24% NRIs want to invest in MFs. About 27% NRIs in nations like Australia, China, Qatar, Malaysia, Germany, New Zealand and Kuwait also prefer investing in MFs.
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