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NRI
INVESTMENT
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 Non-residents and foreign companies
Persons who are not citizens of India (whether resident in India or not) and companies (other than banks) which are not incorporated under any law in force in India are required to obtain prior permission of the Reserve Bank to acquire, hold, transfer or dispose of by sale, mortgage, lease, gift, settlement or otherwise any immovable property in India. The work relating to the permission for acquisition, etc of immovable property is centralised in the Central Office of the Reserve Bank at Mumbai.
But the above restrictions do not apply to immovable property taken or given on lease for a period not exceeding five years. Prior permission of the Reserve Bank is necessary for acquisition, disposal etc. of flats in co-operative housing societies.
In partnership firms, if any of the partners is a foreign citizen, the firm should obtain permission of Reserve Bank for acquisition/disposal of the immovable property. If any member on the governing body of an association/ organisation or any trustee of a trust is a foreign citizen, such a body/trustee should obtain the Reserve Bank's permission..
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 Acquisition, sale etc of immovable property by foreign banks
The acquisition, sale, disposal, etc of immovable properties in India by foreign banks operating in India is governed by the relevant provisions of the Banking Regulation Act, 1949 and the policy of the Reserve Bank in this regard in force from time to time. Foreign banks should ensure while undertaking such transactions in immovable property that they are in accordance with the provisions of the Act and directions issued, if any, by the Department of Banking Operations and Development of the Reserve Bank.
Applications for fresh acquisition or holding of immovable property in India (other than those covered under the general permissions granted by the Reserve Bank) should be made to the bank in form IPI 1 and for sale/transfer of property (other than tea, coffee, rubber, etc plantations or those covered by general permissions granted by the bank) in form IPI 2. Applications for sale/transfer of tea, coffee, rubber etc plantations should be made in form IPI 3 together with particulars in form IPI 4
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 Property investment doors open for NRIs
NRIs can acquire residential/ immovable property in India, rent it out, transfer or sell it, if required. However, the regulations do not permit NRIs and PIOs to acquire property like agricultural land, plantation and farmhouse. With the government allowing 100 per cent repatriation, they can also take the rental income and capital investment in the property outside India, subject to the foreign exchange regulations.
The NRI/PIO may use his own funds to acquire immovable property; other than the option of availing home loan from bank for this purpose. The NRI's ‘own funds refer to the money received in India by way of inward remittance from overseas out of income earned overseas, and personal savings outside India.
Moreover, they can remit sale proceeds outside India for up to two such properties without any RBI approval. Remittance for subsequent properties requires RBI's approval.
In case the property is acquired from rupee funds held in India, the remittance depends on the holding period of the property.
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 Investing in a mutual fund
Mutual funds are funds that pool the money of several investors to invest in equity or debt markets. Mutual funds could be equity funds, debt funds or balanced funds.
Funds are selected on quantitative parameters like volatility, FAMA model, risk adjusted returns, rolling return coupled with a qualitative analysis of fund performance and investment styles through regular interactions/due diligence processes with managers.
Mutual fund investments also offer you a lot of flexibility with features such as systematic investment plans, systematic withdrawal plans and dividend reinvestment. They are available in units so this makes it very affordable. Because of the large corpus, even a small investor can benefit from its investment strategy. In open ended schemes, you have the option of withdrawing or redeeming your money at any point of time at the current NAV. Risk is lowered with mutual funds as they invest across different industries and stocks. Expert fund managers of the mutual fund analyse all options based on experience and research.
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