In tandem with India’s burgeoning investment landscape, there has been a steady rise in NRI investments. While India’s investment ecosystem is certainly a lucrative market for NRIs, many fail to consider the time horizon of the investment as a pivotal element in formulating their financial strategies. Against this backdrop, SBNRI, the NRI-centric investment platform, has recently conducted a survey revealing key factors shaping their long or short-term investment decisions.
From a plethora of investment options – mutual funds, real estate, stocks, and much more, India’s investment ecosystem not only offers NRIs a pool of options but also delivers the unique opportunity of diversifying investment portfolios.
Key findings of the report;
Along these lines, SBNRI’s survey report unveiled 18% of Canada-based NRIs followed by 16% UK and 12% of Singapore-based NRIs focus on retirement planning while formulating long-term investment strategies. On the other hand, 9% of NRIs from Singapore give high preference to wealth preservation in comparison to a mere 2 and 1% from the UK and Canada respectively.
Additionally, the report revealed only 4,3 and 1% NRIs from Canada, UK, and Singapore respectively focus on education funding when making long-term investments.
Mudit Vijayvergiya, founder of SBNRI, said, “India has emerged as an attractive investment destination for NRIs, offering them an array of options and portfolio diversification. However, choosing between long-term or short-term investments can be exhaustive, from navigating geopolitical funnel, risk tolerance to tax implications, the investment diaspora is permeated by a confluence of factors.”
Aggressive Risk Tolerance
In the realm of long-term investment, SBNRI’s report unveiled that 8% of Canada-based NRIs adopt an aggressive risk tolerance while only 7% of NRIs from both UK and the US adopt an aggressive risk tolerance. Following this, 4% of NRIs from the UK opt for a more conservative risk tolerance which stands at 3% for both Canada and the US.
Furthermore, 5% of NRIs from all – Canada, the US, and the UK opt for a moderate risk tolerance when making long-term investment strategies.
Global Factors Influence Investment Decisions
In a fiercely competitive landscape, global economic trends and geopolitical concerns usually affect every facet of the industrial horizon. Being no exception, SBNRI’s report also revealed that 21% of NRIs from Singapore followed by 15% from Canada and 11% from other countries are influenced by global economic trends and geopolitical stability when making long-term investment decisions.
On the contrary, only a fraction that is 4% from Canada, followed by 3% and 2% from Singapore and other countries respectively don’t prioritise geopolitical stability while shaping their long-term investment decisions.
Transitioning into the space of short-term investment, SBNRI’s report explored immediate liquidity as a major factor affecting short-term investments.
The report showcased that only 1% of NRIs from both Australia and the UK, in comparison to 3% from the US, considered immediate liquidity a critical factor in short-term investment decisions. However, the number increases with 7% NRIs from the UK and 6% NRIs from both Australia and the US considering it as an important factor.
Considering the lucrative offerings that attract NRIs to invest in India, SBNRI’s report unveiled the imperative given to tax implications while making investment decisions.
Around 13% of Canada-based NRIs followed by 9% and 8% from the US and other nations respectively, prefer considering it to as an extremely important aspect. While only 4% of NRIs from Canada followed by 1% from both the US and other countries, don’t place any importance on understanding the tax implications on investments.