Everything you need to know about investing in India as a Canadian NRI

For Canadian Non-Resident Indians (NRIs), managing and investing money in India has traditionally been viewed as complex. However, HDFC Bank stands out as a leading institution simplifying this process. This article outlines various investment avenues available for Canadian NRIs through HDFC Bank and highlights the necessary steps to get started.

Before diving into investment opportunities, Canadian NRIs must first establish an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) savings account with HDFC Bank. These accounts are essential for:

• Transferring Foreign Earnings: NRE accounts allow the transfer of foreign income to Indian accounts in Indian Rupees (INR), while NRO accounts help manage income earned in India.
  
  
• Earning and Managing Investments: Both accounts facilitate the receipt of interest, dividends, and the management of income from various Indian investments.

1. Mutual Funds

KYC Compliance:

• Procedure: Canadian NRIs must first complete Know Your Customer (KYC) compliance, which involves submitting proof of identity and address, along with a FATCA (Foreign Account Tax Compliance Act) declaration.
  
  
• Benefits: Mutual funds offer diversification across various asset classes, which helps manage risk in a volatile financial environment.

2. Application Process:

• AMC Selection: Not all Asset Management Companies (AMCs) accept investments from Canadian NRIs. HDFC Bank facilitates this process and offers an online application option for convenience.
  
  
• Funds Management: Use NRE and NRO accounts for transferring funds and receiving returns.

3. Offshore Investments

Diversification:

• Partnerships: HDFC Bank collaborates with both Indian and international AMCs to provide a range of offshore investment opportunities.
  
  
• Asset Classes: Investments can be made across equities, fixed-income bonds, and commodities, helping to balance the risk-return profile.

4. Advantages:

• Global Reach: These investments provide access to international markets and help diversify across different currencies and geographies.

5. Real Estate

Investment Opportunities:

• Residential Projects: Real estate is increasingly popular among NRIs for long-term investment. HDFC Bank simplifies the process of investing in Indian real estate.

6. Home Loans:

• Simplified Process: HDFC Bank offers streamlined home loan applications for NRIs, including options for co-applicants and Power of Attorney (POA) arrangements.

7. Fixed Deposits

Safe Investment:

• NRE and NRO Fixed Deposits: Ideal for risk-averse investors, these deposits offer safety with fixed returns. Tenures range from 7 days (NRO) to 10 years (NRE).

8. Features:

• Flexibility: Deposit money in INR, with the option to choose joint holders (NRI or Indian).

9. Foreign Currency Deposits

Risk Mitigation:

• Foreign Currency Non-Resident (FCNR) Deposits: Designed for avoiding foreign exchange rate risks, these deposits are held in Canadian dollars, and both principal and interest are repatriable.

10. Tax Benefits:

• Exemption: Interest earned on FCNR deposits is tax-exempt.

HDFC Bank offers further assistance for Canadian NRIs:

• Telegraphic Transfers: Facilitate international money transfers.
  
  
• Travellers' Cheques: Secure and convenient for international travel.

Investing in India as a Canadian NRI is made easier with HDFC Bank’s comprehensive suite of services and investment options. By opening NRE or NRO accounts and exploring various investment avenues—such as mutual funds, offshore investments, real estate, fixed deposits, and foreign currency deposits—NRIs can effectively manage and grow their investments in India. HDFC Bank’s expertise and global network ensure that Canadian NRIs receive tailored support to make informed investment decisions.

Looking to invest in India? Click here to begin your investment journey!

You can also read more on what you must know as an NRI about investing in India’s real estate market.