Financial literacy doesn’t stop at a country’s borders, and for the growing community of Non-Resident Indians managing money across two economies, that literacy often needs to work harder. It was with this in mind that Ashutosh Financial Services continues to organise sessions that break down complex investment decisions into practical, understandable choices, believing that sound financial planning begins with clear, honest information rather than assumptions carried across borders.
On 3rd December 2022, the firm hosted a webinar titled “NRI Financial Planning – Investment Aspects,” bringing together Daxesh Kothari and CA CFP Rajit Kothari to speak with an audience of Non-Resident Indians. For NRIs, investment decisions carry an added layer of complexity: currency movement, taxation in two jurisdictions, and the challenge of staying updated on Indian markets from a distance. This session was built around exactly those concerns, aiming to give attendees a clearer sense of where and how to allocate money back home.
The session opened by placing India within a global context. Comparing growth rates across the world’s twenty largest economies, India’s expansion stood out as one of the strongest, trailing only Saudi Arabia and comfortably ahead of developed economies such as the US, UK, and Germany. This was paired with a look at interest rate movements through 2022, where India’s rate increases were shown to be more measured than the sharp hikes seen in economies like Brazil or the UK. Stock market performance told a similar story: while major indices in the US, China, and South Korea posted double-digit declines over the year, India’s Sensex was among the very few to close in positive territory. Even on currency, the rupee’s depreciation against the US dollar was notably smaller than that of the British pound, Japanese yen, or South Korean won. Taken together, these comparisons were used to make a broader point: India’s relative economic stability, even during a difficult global year, is a meaningful reason for NRIs to keep the country on their investment radar.
From there, the discussion moved into what was driving confidence in Indian equities specifically. Several structural factors were highlighted, including a revival in domestic manufacturing, the “China plus one” shift in global supply chains that is redirecting investment toward India, and a services sector that, despite pressure on IT-enabled exports, was seeing strong recovery in contact-driven businesses. Government finances were described as being in good shape, supported by record direct and indirect tax collections, while rising participation from local investors through monthly SIP contributions was pointed to as a sign of sustained domestic demand for equities. The speakers were careful to balance this optimism with genuine caution: rich valuations in certain sectors, the risk of imported inflation, and the possibility that global recessionary pressures could still spill over into Indian markets were all flagged as risks worth watching.
On the practical side, the webinar walked through the range of routes available to NRIs looking to invest in India. Equity-oriented mutual funds were presented as an accessible starting point, offering professional fund management and portfolio diversification without the need for a demat account, though attendees were reminded that US tax rules under PFIC can create notional taxation that direct stock or PMS investments do not. For those with larger amounts to deploy, Portfolio Management Services and Alternative Investment Funds were discussed as ways to access unlisted companies and more customised strategies, albeit with higher minimum investment thresholds and longer holding periods. On the fixed income side, the session was candid about compressed returns in debt mutual funds and government bonds, instead pointing to options like corporate fixed deposits, tax-free bonds, and guaranteed return insurance plans as ways to secure more attractive, predictable yields. Current FD rates across NRE, NRO, and FCNR deposits with major banks and NBFCs were shared to give attendees a real sense of where returns currently stand. Real estate was covered too, not only through direct property ownership but through listed instruments like REITs and InvITs, which allow exposure to income-generating real estate and infrastructure assets without the responsibilities of direct ownership.
What came through across the session was less a single recommendation and more a framework: understand the macro picture, weigh it against personal tax exposure and liquidity needs, and diversify across asset types rather than relying on any one option. For NRIs, that kind of grounded, comparative thinking matters more than chasing any single high-return opportunity. Sessions like this one reflect why Ashutosh Financial Services continues to invest in financial education, recognising that informed investors, wherever they are based, make better long-term decisions.
