Mutual Fund

NRI can invest in mutual funds in India. AMFI (Association of Mutual Funds in India) is regulating mutual funds. Mutual funds have so many schemes based on the demand of the people. Open end schemes, Closed end schemes, Debt schemes, Equity schemes, Liquid schemes and so on. Mutual funds have online investment mode, also have liquidity, transparency, and tax benefit. So It is the best option for NRI.

Shares & Debentures

NRIs can also invest directly in Indian stock market through PIS (Portfolio Investment Scheme). SEBI (Securities and Exchange Board of India) regulating India stock market. List of Indian companies are published by RBI, those companies are eligible for purchase and sale

Real Estate

Real estate has been one lucrative investment option for non-residential Indians (NRIs). Also, whether the market is hot or not, many NRIs like to have a place back here in India. The RBI's regulations on it are fairly easy as well and you do not have to take any prior permission from the authorities. The rules for any such property transaction fall under the Foreign Exchange Management Act (FEMA).

NRI or Person of Indian Origin (PIO) can own both residential as well as commercial properties in India and there is no restriction on the number of properties you can buy. However, you cannot purchase any agricultural land, farm house and plantation property. You can have ownership of such property only if they've been gifted or inherited.

Also, the monetary transaction must be in Indian rupees (INR) and through normal banking channels using an NRI account.

According to RBI norms, a maximum of 80% of the value of property can be funded by a financial institution. Rest has to come from the NRI's personal resources. Indian financial institutions give rupee loans and so the same needs to be repaid in rupees only. "Another option NRIs can use is to get funding overseas where interest rates are lower and is a good idea especially if you are still overseas and have income accruing there.

Since all transactions must happen through the banking channel, repayment has to be done by inward remittances. You can directly get the money remitted from NRO/NRE account in India or issue post-dated cheques or Electronic Clearance Service (ECS) from your NRE, NRO or Foreign Currency Non Resident (FCNR) account.