Investment Plans for NRIs in Qatar

The rapid growth of the Indian economy over time has led many NRIs including those based in Qatar to invest in the equity stock of domestic companies. To do so, as an NRI, you need to have a valid demat account in India which is linked to either a NRO (Non-Resident Ordinary) account or NRE-PIS (Non-Resident External – Portfolio Investment Scheme) account. There are also a number of terms and conditions that restrict the amount you are allowed to investment in India as an NRI and how much of your investments/returns you are allowed to repatriate. Do seek the advice of an investment advisor to know details of regulations related to equity investment in India.

Mutual funds offer a range of investment option for resident Indians and NRIs alike. Investing in mutual funds as an NRI is governed by the same requirements as that of equity investments in India, i.e. a demat account and a NRO/NRE-PIS account. Additionally, you may be required to provide a declaration of your NRI status to the AMC you are making investments with. Through mutual funds, NRIs based in Qatar as well as other overseas locations can get exposure to a variety of asset classes ranging from equities and debt to commodities such as gold and silver.

However, NRIs need to ensure that they choose authorized and tax-compliant mutual fund providers in order to avoid issues related to taxation, fund repatriation, etc. with respect to future investment profits.

Fixed Deposit investments in India typically provide a higher return that similar assured returns product overseas. Moreover, FD investments for NRIs can provide a high degree of stability to the overall investment portfolio as their returns are not impacted by market movements. While it is important to tap into market-linked investment options if you wish to earn higher returns, it is equally important to safeguard your capital to help mitigate risk, which can be achieved through FDs.

NRIs can invest in fixed deposit via their NRE, NRO or FCNR accounts. Therefore, as an NRI in Qatar, you should consider FD investments as a safe investment instrument to be included in your portfolio.

Gold as an investment has been popular across the world and since historical times. As an NRI based in Qatar, you may consider investing in gold and often this is done in the form of physical gold such as jewelry, bars and coins. Alternatively, you can also opt for investments in non-physical gold instruments in India such as gold mutual funds, gold ETFs or digital gold.

That said, there is another gold investment option available in India which is endorsed and regulated by the Indian Government, i.e. Sovereign Gold Bonds. But currently, as per the rules, NRIs are not legally allowed to purchase SGBs. However, if you purchased these SGBs before attaining the NRI status, you can retain the same till maturity.

Investing in real estate as an NRI in Qatar can offer significant growth over the years, especially when done in locations with high demand for housing such as Mumbai, Delhi, and Bangalore etc. If you already own real estate in India, you can also rent out your property in India and earn rental income on the same. That said, it must be noted that NRIs, be in Qatar or anywhere else outside India, are not allowed to invest in agricultural land as per current laws.

The National Pension System (NPS) is a market-linked retirement investment option that is overseen by the PFRDA (Pension Fund Regulatory and Development Authority). Along with the Indian residents, NPS is available to NRIs (and OCIs as well) aged between 18 and 70 years. NRIs in Qatar can invest in NPS via their NRE or NRO accounts. Contributions made toward the NPS are allowed to claim 80C deductions up to Rs 1.5 lakhs every year, as per the Income Tax Act, 1961, while an additional deduction of Rs. 50,000 can be claimed annually u/s 80CCD(1B). It is noteworthy that these benefits are only available to NRI tax payers who opt for the old tax regime. Additionally, as per current rules NPS investment is not available to PIOs i.e. Persons of Indian Origin.

Alternative Investment Funds (AIFs) are similar to mutual funds but are specifically towards high net worth individuals (HNIs) such as NRIs residing in Qatar or elsewhere. AIFs allow NRI to invest in private equity, venture capital, and hedge funds etc. in India as per government regulations. NRIs interested to invest in new companies, venture capital funds, and unlisted companies etc. can consider Alternate Investment Fund investments.

Qatar-based NRIs interested in purchasing life insurance with investment component can consider Axis Max Life Smart Wealth Plan (a Non-Linked, Non-Participating, Individual, Life Insurance Savings plan, UIN: 104N116V14). This plan offers guaranteed*# maturity benefits to the policyholder. Apart from the wealth creation prospects, NRIs from Qatar and other overseas locations who purchase this plan also get the benefit of life cover which is built into this product.

ULIPs or Unit-Linked Insurance Plans offer comprehensive protection-cum-investment options for NRIs based in Qatar and other overseas locations. Axis Max Life Online Savings Plan (UIN: 104L098V06) is a non-participating ULIP which can be accessed via online route only. This plan allows policyholders to invest in domestic companies using various funds and investment strategies so that they can benefit from India’s long term growth potential.

Salient features of this plan include inbuilt life coverage, zero policy administration charges, zero premium allocation charges, unlimited free fund switches, etc. Benefits of Axis Max Life Online Savings Plan include maturity benefit, death benefit and tax benefits as per Section 80C, 80D, and 10(10D) of the Income Tax Act, 1961. Do note that as per current tax laws, these tax deduction benefits are only available if one has opted for the old tax regime.

Axis Max Life Smart Fixed-Return Digital Plan (UIN: 104N123V05) is non-linked and non-participating individual life insurance savings plan which offers guaranteed*# returns along with the benefit of life cover ensuring financial security and stability for the policyholder and his/her family.

This plan also offers additional maturity benefit to the female policyholders including Qatar-based NRIs. Thus, if you’re a female NRI, this plan will offer higher to you as compared to a comparable male policyholder.