Why NRIs in India Should Choose Long-Term Investing Options in the Share Market

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The Indian investment ecosystem is a fertile one with loads of investment opportunities cropping up, both for Indians residing in India and for Non-resident Indians or NRIs, especially long-term investment in the Indian share market. Let’s find out why NRIs should go in for long-term investment in the Indian stock market.

It is worth exploring the reasons for NRI investment in India. Tapping into the Indian financial markets gives NRIs a chance to invest in their homeland and reap potentially substantial profits in the long run. NRI investment in India may take place for several reasons. Still, the key ones include that NRIs may want to be a part of India’s growth curve and most NRIs may anticipate significant profits from India’s emerging economic practices. Nonetheless, before getting into the details of why NRIs should choose long-term investment in India, particularly in the share market, let’s delve into some basics about NRIs first. 

Article Highlights

Here the article highlights the reasons for long-term NRI investment in India in the share market: 

  • What is an NRI?

  • NRI Investment in India

  • Why NRIs Should Invest for the Long Term in the Indian Share Market

What is an NRI?

The acronym ‘NRI’ is nothing but an easy way to say ‘Non-resident Indian’. NRI stands for those individuals who are of Indian origin but reside overseas. NRIs commonly have unique financial goals, including the preservation of wealth, the generation of income, and preparation given their potential return to their homeland, India. All NRIs may not return to India, but they still wish to invest in the country, especially in the share market. NRI investment in India has become commonplace in recent years as the Indian economy has opened up to the world and shows distinct signs of emerging as a global contender in the financial markets. Some of the best investment plans for NRIs comprise share market investments as NRIs are typically cash-rich and can afford to take a degree of risk in their investment. 

NRI Investment in India

NRI investment options in India are becoming more and more diverse with each passing year. NRI investment in India is significant as this contributes to the Indian economy’s stability and financial health. When NRIs invest in India, they are not just playing the role of investors but key catalysts for shaping innovation and carving a niche for India on a global level. In the realm of long-term share or equity investing, NRIs have many options from simply buying and holding stock to investing in mutual funds. The appeal of India as a share market investment destination is obvious as NRIs may want long-term capital appreciation and with regulations making investment in the Indian share market easy, more and more NRIs should flock to the stock market. 

Why NRIs Should Invest for the Long Term in the Indian Share Market

NRI investment plans and options are diverse in India, offering NRIs opportunities to allocate their wealth to a plethora of investments aligned with financial goals and circumstances, not to mention different risk profiles. There are two elements to consider when speaking about NRI investment in the share market for the long term - share market investment and long-term investment. The reasons for investment in the Indian share market may be quite obvious at first glance. The Indian stock market may be perceived as a diverse playground for stock investment and since India is an emerging economy, value and growth stocks offer the potential for profit. 

There are some top reasons why stock market NRI investment in India for the long term should be a consideration in any NRI investment plans: 

  • Planning for Retirement

NRIs who plan to spend their golden years where they grew up, may wish to invest in the Indian share market for the long term. Retirement planning is the main reason to think of long-term stock investment. With such investment, market volatility is mitigated, and the profit potential is possible. Given the high standard of living abroad and the exorbitant cost of healthcare overseas, NRIs may wish to invest in the stock market for the long term whether they wish to return to India or not. 

  • Long-term Capital Appreciation in an Emerging Economy

As mentioned before, there are several NRI investment options in India, but stocks may pose a distinct appeal for their return on investment quality, especially in long-term investment. From a historical perspective, stocks have shown the most optimal returns compared to any other investment instrument in India. Whether NRIs choose growth stocks or blue chips, their investment could potentially reap rich rewards in the long term. Furthermore, emerging markets tend to yield potentially richer returns than developed nations over the long term as companies grow, expand, and prosper. 

  • Longer Investments, Lower Risks

Stock investment may carry a fair degree of risk, but NRI investment in India in the share market for the long term may carry reduced risk. Even if there are intermediate spells of lows in the economy, these are ironed out in the long run.

Staying Invested in India

In India, NRIs have the potential to build assets for many generations to come if they invest wisely. One of the potentially lucrative sources of investment arises from the Indian stock market, especially if you are an NRI willing to remain invested for the long haul. 

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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