Mutual Fund – A group of people pools the money and gives it to get it managed professionally. The investment avenue offers cost efficiency, professional management, Risk – diversion, Good regularity body. Mutual investment allows investor to start with minimum of Rs. 500. Like Direct Equities, NRI can also invest into mutual fund, it requires a bank account in India & KYC (Know Your Client) to invest in Indian mutual funds, mutual fund investment also offers option of repatriation of non- repatriation
Commodities – commodities has emerged as one the asset class in recent time. Government has allowed investment into listed commodities. Commodity trading is in its nascent stage in India. Currently, commodity trading is available in bullions, base metals and Agri commodities. Investor needs to open and account with the broker to trade in a commodity market. Commodity market is very risky. Investor with sound knowledge should only invest in commodities. As of now, NRIs are not allowed to trade in commodity market in India.
Taxation – Taxation kills the real returns of investment, investor should always look at the tax treatment of any investment before investing into it. E.g. an investment into fix deposit at 9% by an investor who fall under 30% tax bracket will yield 6.22% which is equivalent to current inflation rate. Eventually investor is not earning any returns post inflation. Taxation for NRI is a little difficult to understand. NRI should consult an expert before investing, which can eventually help to reap handsome post tax returns.