How NRIs & PIOs can Invest in retirement saving plans in India?

Investing in a proper retirement plan is the primary concern of every employee worldwide and there is a wide array of options available. You can plan ahead and watch your money grow to make your retirement not only comfortable, but financially rewarding as well.

To arrive at a retirement plan, you need to check out various alternatives and also follow some simple steps. There are several user friendly services backed by 24/7 customer support for nonresident individuals to plan their retirement.

Clients are served by agencies that have tie-ups with a wide range of insurers to provide them the best in retirement plans. You can check out the individual options and decide on what would suit you best. Each plan has its share of advantages over the other as well as some shortcomings.

Professional agents are always there to help you on the internet for choosing the right plan. Retirement plans are also not a one-size-fits-all type and what would suit someone else will not suit you.

Decide how much income you would need

You need to decide on your own how much income you require to live comfortably after retirement after taking into account the possible hike in cost of living during the period.

The impact of inflation can be calculated by the inflation index calculator which will give you a rough idea to make your plan.

Take into account medical expenses as they tend to go up in old age, gifts, family expenses, and travel and rental charges if you do not plan to buy a home.

Market linked plans

Depending on your present income, you can plan how much savings you can do. Your retirement calculator will indicate the money you will need and the amount you can save. It is only by selecting the right retirement plan that you can meet all your post retirement goals comfortably. If you opt for plans that invest your money in the financial market, you can be assured of a healthy return. But you need to invest in a plan that would ultimately meet your criteria.

Plan from now to benefit from compound calculation

Instead of putting off retirement planning for another day, you should act quickly and the best time is right now. The more delayed the entry the lower would be your chances of getting a reasonable return on your investment. Costs are going up and to meet the price index post retirement would require you end up with a good return. As time is on your side, you can take advantage of the benefits of compounding calculation as well.

Your primary requirement would be to invest a specific amount each month and watch it grow. It would again depend on your monthly income and budget as well as how much money you can comfortably spare for investment.

The insurance sector in India has lots of tailor made plans to suit the NRI and even those who plan to come back to India after years of working abroad. Many NRI’s are investing in the burgeoning insurance business these days for planning their retirement.

The Indian insurance industry dates back to the early 19th century and life insurance premiums account for nearly 2.5 percent of the GDP. After economic liberalization kicked off and in the subsequent years beginning with 1999, the insurance industry has witnessed many path breaking changes with several global players entering the lucrative Indian market.

But even though the foreign direct investment has been hiked up to 26 percent, the largest insurer is still owned by the government.

There any many firms these days offering such professional services to non resident Indians. One such financial firm offering complete NRI investment services that I like is: www.NriInvestIndia.com

Indian Mutual Funds

Indian Mutual Funds: What Are they for NRIs?

A mutual fund is nothing but a collection of stocks and/or bonds. You as an NRI - Non Resident Indian can think of a mutual fund as a company that brings together a group of people and invests their money in stocks, bonds, and other securities. Each investor owns shares, which represent a portion of the holdings of the fund.

NRIs - Non Resident Indians can make money from Indian Mutual Fund in 3 ways:

1) Mutual Fund Income is earned from dividends on stocks and interest on bonds, held by the mutual fund.

2) If the Indian Mutual fund sells securities that have increased in price, the Mutual fund has a capital gain.

3) If Mutual fund holdings increase in price but are not sold by the fund manager, the Mutual fund's shares increase in price. You can then sell your Indian mutual fund shares for a profit.

*** Mutual Funds will give you a choice either to receive a cheque or to reinvest the earnings and get more shares.

Advantages of Mutual Funds for NRIs:

• Professional Management - Primary advantage of Indian mutual funds is the professional management of your money. An Indian mutual fund is a relatively inexpensive way for a small investor to get a full-time manager to make and monitor investments.

• Diversification - By owning shares in India's mutual fund instead of owning individual stocks or bonds, an NRI's - Non Resident Indian's risk is spread out because large Indian mutual funds typically own hundreds of different stocks in many different industries in one mutual fund itself.

• Economies of Scale - Because a mutual fund buys and sells large amounts of securities at a time, thus the transaction costs for NRIs - Non Resident Indians are lower.

• Liquidity - Just like an individual stock, an Indian mutual fund allows you to request that your shares be converted into cash at any time.

• Simplicity - An NRI - Non Resident Indian living abroad can buy and sell Indian mutual funds online easily and quickly....!!

Visit www.nriinvestindia.com for Free Investment Advice

www.nriinvestindia.com is an investment website online that will answers questions and queries of NRIs:non resident Indians living anywhere in the world to do investments in India through Indian mutual funds and Indian stock markets online.