Indians generally migrate to the UAE for better career options and also for improving their lifestyle. As UAE is economically abundant when compared to India, there is a great chance for Indians to have better opportunities over there. However, as Indians are known for saving their hard earned money, here are the best investment options for them to invest their money in the homeland and acquire profits as fruitful as they gain in Dubai.
Real estate is the first option that comes to the mind of Indians living in Dubai as it involves in immovable property that they can afford in their homeland. To invest in real estate, expats in UAE should own an NRO account (Non-Resident Ordinary) to obtain rent that you get from your properties based in India like agricultural lands, houses, plots etc. The NRO account holder should pay the tax whenever the amount gets credited to his account as it is taxable. However, an expat in the UAE can own any number of assets in India without any restrictions or constraints attached to them.
Investing in a business is one of the most popular ways followed by NRIs for investments. An NRI can start a business in India with his partner who is an Indian resident. Indian government imposes no rules or regulations for starting a business in India except for the fact that the person who is willing to start a business should pay corporate tax to the government of India.
Mutual funds are preferred by the expats in the UAE as they yield good returns. Investment in mutual funds should be done based on the time origin selected to access the money. If one is unsure of which mutual fund to choose, he should access the track record of previous funds handled by that particular asset management company. Investment in mutual funds should be done only in Indian currency and to gain profits in mutual funds one should fill his account, let the money stay in the account for some considerable amount of time say 10 years and observe its growth.
Most of the expats prefer fixed deposits as they give stable and fixed returns and also the safest option for investments. Fixed deposit is the best option to invest for short-term financial goals. In order to invest in Fixed Deposits, one must have to open an NRE account (Non- Resident External Account). The account holders will be provided with 7-9% interest while the amount will be attached to the account. No need to pay tax on interest as well on the amount linked to NRE account. However, fixed deposits are best options only for short-term goals but not for long-term goals due to post tax returns and inflation which reduces your amount at the time of maturity.
Expats in UAE can buy shares introduced/published by Reserve Bank of India(RBI). RBI introduced the Portfolio Investment Scheme and stock markets come under this scheme. NRIs have to make this investment by means of stockbrokers who are registered with the Stock Exchange of India even though this is a direct investment. In order to carry out investments in stock markets, one must have permissions on the shares. The accounts needed for this investment are NRO, demat account, NRE account, and a trading account.
National Pension Scheme
This investment comes under planning for retirement. National Pension Scheme(NPS) is one of the best long-term investment options one can make back in their homeland for their retirement planning. NPS provides tier 1 and tier 2 investment schemes. Tier 1 scheme can opt if one wants to invest once and don’t want to break the bond till the retirement period. Tier 2 scheme can be chosen if the customer is looking for a medium-term investment tool. The accounts required for NPS are NRO or NRE or FCNR(Foreign Currency Non-Repatriable Account).
These are the best investment options one can choose if they want to invest back in their homeland while staying in UAE. But, as an investor, it is always good to seek the advice of a financial expert before taking any step.