Posts Tagged ‘Investment’

Investing in Gold

February 29, 2012

Investment is a necessary tool for us to ensure a better future. Now there may be various ways of going about investing your money, but as proven time and again, gold tends to be a steady performer no matter what the economic situation might be. Be it Indians or NRIs, we all love to invest in gold. It makes sense to have some gold in your investment portfolio no matter where in the world you may be living. It is low risk and has excellent liquidity even in comparison to real estate! Especially seeing the wildly fluctuating currency exchange rates, this seems to be the best bet. Economists even predict that as the dollar weakens, gold prices rise.

You can of course buy gold in the form of ornaments, guineas or bricks. If you still enjoy the risk that comes with trading and want to combine that with gold, you can try commodities exchange!

As an NRI you can bring up 10,000 grams, once in six months. But this is under the regulation that you have stayed abroad for a continuous period of six months. For this you have to pay custom duty in the latest rate according to EXIM Policy. The rate is usually set for per 110 grams of gold.

If you want to invest in gold without having to physically hold it, the best way to do it is through Gold ETFs, which are mutual funds investing in Gold, to passively invest in gold. There are no restrictions for an NRI if the ETF is listed in the stock exchange. This perhaps is a far better way of investing than just keeping gold in lockers!

So invest away in this almost fool proof method because no matter where in the world you may be, gold will always shine bright!

Financial Year 2011 For NRIs

January 4, 2012

  
  Almost any NRI has an inextricable link with his or her family, friends and associates back home in India. This bond works on several levels. At the most basic and essential level, it is a strong albeit intangible bond that an Indian overseas shares with the home land. Of memories of childhood, a cultural ethos and context. And then of course, on a regular basis, us NRIs are always connected with India, because of our families and various other reasons.

  While the emotional bonds with India are often talked about, there also exists a very real financial relationship with our home country, that is often not spoken of, as much. Whoever I know, including myself, has a dedicated and ongoing financial relationship with India. This may be for a number of reasons. Taxation, investments, and most importantly, money transfers. And the rupee rate has a direct and big impact on the quality of these sub-relationships, all the time.

  In 2011, by and large, things were good for the NRI financially in terms of India. While the rupee rate fell quite regularly, and this meant an unpleasant situation for the indigenous economic situation with India; for us as NRIs, it simply increased our buying power. So be it wanting to invest in say property, or just sending money home to our families and our loved ones – our pounds, euros and dollars, fetched us a lot more than it did earlier, when the rupee was a bit stronger. Especially towards the end of the year, with the rupee sliding from as high as 45 rupees to the US Dollar to a low of 52 rupees to the dollar; the NRI buying power was immensely boosted. To put it plainly, we got a lot more value for our foreign exchange in India, than before.

   Coupled with the fact that the rest of the world was seeing rather uncertain financial times, at least in a relative sense India made for a much safer option to invest and park our money. I personally invested in two real estate projects and had the continued satisfaction of seeing my money return a lot more rupees, once I had transferred it to my parents in Delhi. So all in all, 2011 proved to be rather fruitful financially with relation to India. A good year, with good results.


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