The contemporary Indian economy provides domestic and international residents with a wide range of investment opportunities. Mutual funds, stock markets, alternative investment funds (AIF), and other investment options are the most popular. AIF investments are becoming more popular among investors who are Persons of Indian Origin (PIO), Non-Resident Indians (NRI), and Overseas Citizens of India (OCI).
An Overview of the Indian Economy & The NRI Investor Activities
According to a projection, India’s GDP will overtake China’s as the second-largest in the world by 2050. According to the gross domestic product, it now holds the sixth-place position worldwide. This suggests that for NRI investors, India may be a terrific alternative. An economy with more than 130 crores of citizens offers tremendous potential for investment rewards across most industries.
About AIF for NRI
By issuing units, AIFs allow investments from all Indians, including NRIs. According to the AMC compliance policy, the fund can have geographical limits. To invest in AIFs, investors must first fulfill the following eligibility requirements:
- AIFs must have a minimum corpus of Rs. 20 crores, but just Rs. 10 crores if angel investors are involved.
- For each plan, a maximum of 1000 investors may participate.
- A continuing stake of Rs. 5 crores or less than 2.5% of the initial corpus shall go to the management or sponsor.
India’s Growth Opportunity
India’s GDP has increased significantly over time. It is now ranked sixth globally. In the following thirty years, this economy is anticipated to rank among the top two economies in the world. According to the GDP projection for the next five years, the economy will expand at around 6.5% to 7%. On the other side, investment risk is decreased by economic stability. At the moment, India has a stable central government as well. Political stability contributes to economic stability, which in turn, lessens market volatility.
Why An NRI Should Invest
Typically, resident Indians, Indians who have immigrated overseas, and foreigners can make investments in Alternative Investment Funds. The permitted amount for regular investors is Rs. 1 crore. The minimum investment required of angel investors is Rs. 25 lakhs. The minimum investment requirement for top management, including directors, fund managers, and other AIF employees, is Rs. 25 lakhs.
For NRIs, investing in India would be a great choice. The enormous economy of India is capable of producing profitable returns on investments. Make investing simple with the help of AIF & PMS Experts India.
