NRI Investment options


Most Non-resident Indians (NRIs) are 1st generation immigrants. Due to cultural and economic backgrounds, most NRIs stick to conventional investment options. In India, Indians primarily invest in Fixed Deposits (FDs), Real Estate, Stocks & Mutual Funds, and Universal Life Plans (popularly known as ULPs). When it comes to the US, NRIs stick to Real estate, Stock, and Mutual funds. Let’s talk about what are the reasons why NRIs invest in various vehicles.

5 Reasons why NRIs invest

Kids’ education

A college education is one of the most expensive affairs in the USA. Typically, the cost of a college education increases at an average 25% every 10 years, and Indian parents typically want to save for kid’s education. NRIs believe that it is their responsibility to support their kid’s education 100%, without realizing the impact on their own retirement. Yes, there is a need to save or invest money for kid’s education to at least match the Expected Family Contribution (EFC), but always focus on other long term goals like retirement, etc. Read more on Kid’s education savings plans and how to maximize financial aid/scholarship.

Life Style

NRIs culturally have a habit of comparing with peers and competing to earn money and maintain their lifestyle. This is called Lifestyle Inflation. Lifestyle inflation refers to an increase in spending when an individual’s income goes up. Lifestyle inflation tends to become greater every time an individual gets a raise , making it difficult to get out of debt, save for retirement, or meet other big financial goals. Lifestyle inflation is what causes people to get stuck in a cycle of living paycheck to paycheck where they have just enough money to pay the bills every month. With proper foresight, planning, and conscious effort, NRIs can have better financial stability and grow their wealth.


NRIs have a dream of living a luxurious life, big homes, and expensive cars. These expensive things need a great amount of money. They work hard and earn for achieving their dreams. Retirement is one of the biggest expenses in NRI’s life after buying a home and sending kids to college. Whether this is living in India or living in the US, retirement needs lot of money. Early savings will help retirement peaceful.

Send Money to Family

Most of the NRIs have family commitments in India beyond their immediate family. One’s income/salary is probably enough to help you and your immediate family, but supporting extended families and parents in India needs additional recurring income. Most NRIs invest money in India in real estate or mutual funds to give recurring income to take care of family expenses in India. There are still challenges getting the investments back from India to the US.

Leaving a Legacy

Leaving a legacy means putting a stamp on the future, and making a contribution to future generations. People want to leave a legacy because they want to feel that their life mattered. Once you know what you want your legacy to be, you can start building it. You can start living in the way you want to be remembered. Most of the NRIs want to leave a legacy for the next generations. They want their kids to be richer than them.

Learn the various ways of tax-efficient savings and investments. Explore new opportunities for NRIs. Leave a bigger legacy than you can imagine.

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