Prajna Capital - An Investment Guide

In the current financial turmoil, lets take a look at different investment options for NRIs The financial turmoil in the West has resulted in the 34-yearold non-resident Indian ( NRI ) losing more than $1 million in investments in the last six months. A financial consultant by profession, Sharma has now decided to change his asset allocation to diversify its portfolio. Keen to make investments in India, he is unsure of which asset class to park his funds with. Sharma isn’t alone. There are many NRIs who are now wondering what they can do in the current scenario. Here’s an insight into investment avenues for NRIs in the present market situation. FIXED INCOME For risk-averse investors, traditional fixed income products such as Foreign Currency Non Resident ( FCNR ) fixed deposits and Non Resident External ( NRE ) fixed deposits are the safest bet. While FCNR account can be opened in foreign currency, the NRE deposit account is maintained only in Indian rupee. It is advisable to inv...