The NRI Dilemma

With Dollar Rates coming down its time to revisit investment
portfolio of the NRI Investor.

The NRI investor needs to answer a few questions first

1. What is the need?
2. Which country should I invest in?
3. The Rupee v/s Dollar factor

For NRI's planning to settle abroad

Your need is to settle abroad look mostly at the earnings in
dollar terms .So on one hand you might gain from indian
markets on the other you might take a beating in the
currency valuation.

Physical assets demand more local approach so an NRI
should focus on building physical assets at the point of
residence as these assets demand some level of
maintenance, unless you have someone to take care of these
assets in the country you are buying them in.

As mentioned above your earnings might get eroded in case
you are not able to factor the Rupee v/s dollar factor.

For NRI's planning to settle in India

Well the answer is simple for this set of investor .Invest as
much as possible in India keeping teh investment window in
mind.

You might invest using a higher dollar rate but since you are
not converting back to dollar, the earnings from the
investments made will take care of it in medium to long
term.


Party Pooper

Where is the Indian Rupee Headed? A cautious view would
be a gradual decline, in the range of 3 - 5 % every year. We
must remember that India still runs a hefty fiscal deficit and
relies on imported crude oil.

In a Nutshell:

NRI's planning to settle in India should invest as much as possible in India
and those planning to settle abroad should take the
currency factor in to account

Happy Investing