Tips for Mutual Funds Investment for NRIs from USA
Investing hard-earned money may amount to pretty penny. The risk factor always tends to lurk and frighten the investors. And if the investor belongs to the Indian diaspora in abroad, the risk factor leaps forth frequently. NRI investment in mutual fund ranks at the apex position. It is so because they win good ROI and the investment becomes a cash cow for them. Let’s have the roundup about mutual fund investment. I have an idea that this information will be all Greek to a good count of NRIs population in USA especially.
Mutual Funds: The ultimate aim of any investment is profit. But investing at the drop of a hat may cost you hefty. Thus, comprehend first and then only put your money at stake. Now, have a look over what type of mutual fund investment can be NRIs favourite. The NRI wants to invest in India from the USA can consider these points seriously.
Types of Mutual Funds
1. Equity Mutual Funds: Expending mutual fund capital in owing stocks is termed as Equity Mutual Fund.
2. Bond Mutual Funds: Some NRIs purchase bonds with the mutual funds. It is known as Bond Mutual Funds.
3. Balanced Mutual Funds: On teaming up equity with bond mutual funds, the mutual fund transforms into balanced mutual funds.
Catch the glance over top 5 Indian mutual investment offering financial entities with their statistics:
1. TATA Balanced Fund(16% CAGR in last 5 years)
2. ICICI Balanced Fund (18% CAGR in last 5 years)
3. Birla Sunlife 95 fund
4. HDFC Balanced Fund (17% CAGR in last 5 years)
5. HDFC Prudence Fund (19% CAGR in last 5 years)
The foregone stats are just for building your ideology for investment in NRI’s NRE, NRO or FCNR account. But NRE interest rate may vary from NRO account during NRI investment. But yes, the sale of the equity shares can be repatriated.
Advantages of Balanced Mutual Fund Investment:
1. Maintains an optimal mix of bonds and stocks or equity.
2. NRIs or other investors never get overly impacted.
3. If either of the two performs poorly, the balance automatically gets stored.
4. The market trend, either bearish or bullish, will not affect it.
5. The balance is introduced in the premeditated timeframe.