SIP (Systematic Investment Plan) is a popular and effective way of investing in mutual funds in India, and it’s also a good option for Non-Resident Indians (NRIs) looking to invest in India. However, investing as an NRI can be a bit more complex than investing as a resident Indian. In this blog post, we’ll provide a step-by-step guide to SIP investment for NRIs in India, with insights and advice from an expert advisor.
The first step to investing in SIP as an NRI is to open a NRO (Non-Resident Ordinary) or NRE (Non-Resident External) account in India. The NRO account is used for income earned in India, such as rental income, while the NRE account is used for income earned outside India. Both types of account can be used for SIP investments.
Once you have opened the account, you can start investing in SIP. The process is similar to that for resident Indians, where you can invest a fixed amount of money at regular intervals, into a mutual fund of your choice. However, it’s important to note that there may be restrictions on the type of mutual funds that NRIs can invest in, so it’s important to check with your advisor.
When it comes to choosing a mutual fund, it’s important to do your research. Look for funds that have a good track record of performance, and that align with your investment goals. You should also consider the fund’s expense ratio, which is a measure of the fund’s operating expenses as a percentage of assets. The lower the expense ratio, the better it is for the investors.
Another important aspect of SIP investment is to have a long-term perspective. The stock market is highly dynamic, and short-term fluctuations are normal. It’s important to stay invested for the long-term and avoid trying to time the market.
An expert SIP advisor in India like Skylark Groups can help NRIs navigate the complexities of investing in India and make the most of their SIP investment. They can provide you with expert advice, guidance and help you choose the best mutual funds for your investment goals.
In conclusion, SIP investment in India is a popular and effective way of investing in mutual funds for NRIs as well. By opening an NRO or NRE account, investing regularly and having a long-term perspective, NRIs can benefit from the power of compounding and achieve their financial goals over time. With the help of an expert SIP advisor like Skylark Groups, NRIs can navigate the complexities of investing in India and make the most of their SIP investment.