How can US-based NRIs put money into India?

My son shifted to the US three years in the past and now he’s an NRI. He is incomes properly there and needs to have some investments in India. He was very eager to put money into PPF, however I acquired to know that NRIs can’t put money into PPF in India. Please recommend what all he can put money into?

-Name withheld on request

Yes you’re proper. Non-resident Indians (NRIs) can not put money into PPF accounts in India. They additionally can not put money into floating price saving bonds.

However, you might ask your son to start out investing in mutual funds in India. Please be aware that NRIs can freely put money into any of the mutual funds schemes. The finest strategy to create wealth is to start out investing in MFs by SIPs, or systematic funding plans, with a time horizon of 7-10 years, and even longer. While investing in MFs, your son should be certain that the cash is prudently divided between massive cap funds, mid cap funds, flexi cap funds, and a few thematic funds like FMCG, worldwide fairness or particular state of affairs funds, and many others. Also, your son can open an NPS account in India and begin contributing there, no matter quantity is handy, possibly 1 or 2 lakh per yr with greater publicity to fairness & remaining steadiness into company bonds & authorities securities. This funding in NPS will develop to a sizeable quantity in 10-15 years and if he decides to return again in India, he won’t solely get first rate lump sum quantity, after 60 years of age, which will likely be tax exempt, however he may also get pleasure from common month-to-month earnings for the remainder of his life.

I’m planning to take a position and save for my child’s schooling. She is planning to go to the US in 2026 for greater schooling. I’ve stored 15 lakh in financial savings for this. Please elaborate the place ought to I make investments to fulfil my purpose.

-Pankaj

Hi, I’m glad to know that you’re planning and saving to your daughter’s greater schooling. However, it’s a must to needless to say your purpose is sacrosanct and you can not afford to take any danger as it should instantly influence her future. Since you already know the yr wherein you’ll need the funds, the perfect resolution is to put money into goal MFs.

(Queries answered by Sanjiv Bajaj, Jt. Chairman & MD, Bajaj Capital Ltd. Please ship your private finance queries to mintmoney@livemint.com)

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