Non-resident Indians (NRIs) display a remarkably disciplined and goal-focused approach to investing, contributing more and staying invested longer than their resident Indian counterparts, according to a recent study by digital wealth management platform FinEdge.
The study analysed 898 NRI investors across more than 90 countries, collectively managing long-term goals valued at ₹4,200 crore.
The report highlights that the average monthly systematic investment plan (SIP) among NRI clients is ₹6,486, more than double the industry average of ₹2,900 and 58% higher than resident Indian investors. Furthermore, over 75% of NRIs have remained invested for more than five years, with 65% staying invested for over seven years, underlining their commitment to long-term wealth creation.
When it comes to financial priorities, children’s education tops the list, accounting for 30% of NRI investment goals, with an average target of ₹82 lakh, compared to ₹52 lakh for resident Indians. Retirement planning follows closely at 27% of objectives, with an average target of ₹6.24 crore, approximately 75% higher than resident investors. Other notable goals include wealth creation (11%), home purchase (9%), and children’s marriage (8%).
Demographically, 74% of NRI investors are aged 31-45, reflecting a focus on mid-career wealth building and long-term planning. Cross-border investing is facilitated through strong virtual support, with clients averaging 5.4 virtual meetings per year. Most service requests-72%-relate to KYC, FATCA, tax, and transactional queries, illustrating the complexity of managing investments from abroad.
Harsh Gahlaut, Co-Founder & CEO of FinEdge, noted, “Our data reveals the disciplined, goal-centric approach of global Indians. Our platform helps clients invest with transparency and purpose, enabling them to stay aligned with their goals and build meaningful wealth in the long term.”
Investment options for NRIs in India
For NRIs looking to invest in India, there are multiple options, including demat accounts, mutual funds, and GIFT City funds, each offering unique benefits and considerations. Staying informed about regulatory and market changes is crucial for successful investing.
Demat accounts are widely used by NRIs interested in the Indian stock market, allowing electronic holding and trading of shares. The convenience of digital management enables investors to trade seamlessly from anywhere in the world. However, understanding the regulatory framework and keeping up with technological changes is essential for maximising returns.
Mutual funds provide access to professionally managed portfolios, offering diversification and expert oversight. NRIs must consider currency fluctuations and regulatory updates when investing in mutual funds. These instruments allow investors to spread risk across sectors and benefit from professional fund management, which is particularly useful for those residing outside India.
The Gujarat International Finance Tec-City (GIFT City) presents a unique opportunity for NRIs seeking alternative investments in a regulated, tax-efficient environment. With its strategic location, advanced infrastructure, and emerging financial ecosystem, GIFT City offers significant potential for growth and portfolio diversification. Early investments in this hub can be particularly advantageous for global investors looking to optimise long-term returns.