Investing Options in India for NRIs

POSTED BY rangabashyam ON March 29, 2014 9:12 am COMMENTS (2)

I am a citizen of USA with OCI. Can I put my money in retirement plans like “HDFC Life Pension Super Plus” in India. If I put the money in NRO account, my returns are taxable. And again though I am not taxable in USA, I need to show provide the information for IRS. Do you think investing in ROTH IRA is better option instead. Any recommendation on investing in India for NRIs like me which can offer tax advantage

2 replies on this article “Investing Options in India for NRIs”

  1. VinManHBK007 says:

    Dear Mr Bashyam,

    I presume you already have 401k account from your employer and you have employer as well as yours contribution which has maxed out. If yes then good news that Roth IRA is good instrument to manage your investments but please be aware of when you can withdraw funds from it and also no tax incentive would be provided to you since you are investing in IRA.

    Through IRA route, there are few India specific funds available in US and also to find India in their portfolio can be herculean task for a novice investor like you and me.
    Vanguard is a good company and if you can manage a free consultation call they can help. In case you have an account then the financial advisory part would come free and most of their funds have good track record and low expense ratio. You can visit their website for more info.

    As Ashal advised, it would be good to have NRE account.

    Can you please elaborate on ‘And again though I am not taxable in USA, I need to show provide the information for IRS’

    I have learnt the above info while exchanging notes with my brother who is in US.

  2. ashalanshu says:

    Dear Ranga, being an OCI, why are you not opting NRE account which is tax free in India.



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