Every year Indian Expatriates from different countries visit their motherland during November to February time period for many reasons. You as an NRI also visit your village or hailing cities like Bardoli, Surat, Hydrabad, Banglore etc. During this visit, you try to attend social functions, spending time in your hometown, look after your assets and properties, adding your investment including real estate, travel across India, philanthropist activities etc.
NRIs and Investment Choices:
During your visit, you may attend your assets and investment here; you may approach many professionals CAs, Agents or Advisors to conclude in decision. You may have funds parked in Bank FDs, Old PPF, Equity Investment and other capital market instruments. More importantly, if you plan to streamline your portfolio, by taking decisions like renewing FDs, liquidating real estate and buy other assets, switching your funds to other suitable equity companies etc. All these actions will restructure your portfolio and give you rewards as per your investment avenues. Sometimes due to lack of attention or unable to devote sufficient time for restructuring your asset during visit to India leads to loss due to opportunity cost and it sums up to huge loss because of big capital invested.
Real Estate and Bank FDs are preferred investment choices among NRIs and they have relatively less allocation in other than these two. As Real Estate have physical presence and Bank FDs are considered to be the safest choice. Even young NRIs prefer Real Estate as a choice of Investment especially in Bangalore, Hyderabad City and various other developed cities. The sizable investment has been made in Equity by Expatriate under different way like Portfolio Management Services, Mutual Fund, ETFs, Direct Equity etc. Even in Debt Mutual Fund they are allocating and infusing fund.
There are investment cases where NRIs have not attended their investment for a very long time in other than Real Estate, so need to streamline unattended assets. During their visits they need to follow below steps generally,
First step: they have to perform formalities like KYCs and FATCA by providing certain documents.
Second Step: It will be arrived to make necessary changes; there are few cases when NRIs are ready to give time during their visit in India.
After this they may consult his or her relative to stream line it, as their relative stays in India. The Professional investment advisor will help NRIs on case to case basis and take necessary alteration in all kind of investment portfolio after considering investment horizon and past details. Let’s understand this with below case.
Mr. Narayan Vyas is staying in USA for very long time and running Motels there. He has many relatives in Surat so during Christmas time her spouse comes to Surat alone and sometimes he along with her wife, stays in India. During his last visit in December 2017, Mr. Narayan Vyas has attended his portfolio here including capital Market investment. His portfolio is approximately Rs. 4-5 Cr. Including real Estate. Additionally, he doesn’t want to exit real Estate. Other than he has Rs. 1.5 Crores in Bank FDs which he usually renews on his visit. He has Rs. 1 Crore in Capital Market including Equity and Mutual Fund.
Mr. Narayan Vyas’s restructuring Decisions:
He approached CONCEPT to look and discussed his portfolio.
- About his portfolio, we have concluded and advise to change few equity scrips which have delivered return and exit decisions for few other scrips which are not lucrative. So concluding,the total exit amount is Rs. 20 Lakhs. Of this amount, suggested few other scrips based on their risk profile to infuse new fund.
- For their Mutual Fund Investment, under debt Fund we have given Exit in duration type Funds amounting around Rs. 10 Lakh.
- Moreover, he wanted shift few of his FDs in Capital Market so we have advised him conservative risk profile Mutual Funds.
All above restructuring we have approached under our ‘INVESTWELL’ Advisory services. Now, Mr. Narayan Vyas can view their both Equity and Mutual Fund Portfolio at their time, by login into backoffice account and track the performance of portfolio based on their objective without affecting their business when he returned to USA.
Investments by NRIs are most of the time not attended on timely manner and importantly, managed by their family or relative at large. There are many investment opportunities which can be approached while investing. So before visit in India NRIs can approach Investor advisor for what is required by them when they visit India and complete all the tasks related to investment in their visit only and personally.