WISHING YOU & YOUR FAMILY

A HAPPY & PROSPEROUS

NEW YEAR 2011

FROM
TEAM V CLIENT WEALTH

Investment Opportunities in India for NRIs, FIIs

Indian economy has given a feel good factor to the NRIs, especially in the real estate sector. Many avenues are being created as well as schemes being fashioned for them to maximize investments from abroad.

All persons residing outside India holding Indian passports and also people of Indian origin have been granted permission by the Reserve Bank of India (RBI) to invest in both residential and commercial properties in India. Markets have stabilized and there is an impressive amount of interest in this segment. NRIs are quick to invest in properties in India where they see an opportunity for a good deal.

On the anvil is a single-window investment promotion council planned by the government, which will undertake investment promotional activity. This will involve making extensive contacts with potential investors, lobbying and interacting with individual companies so that the overseas Indian finds a suitable investment environment.

To an NRI, a base in the homeland also brings with it a sense of security. The number of NRIs who are investing in property for sentimental reasons and for better investment returns is quickly multiplying.

The government including RBI and Foreign Exchange Management Act (FEMA) has liberalized the rules and regulations for the NRIs to make investment in real estate. Liberalization along with the added advantage of repatriation of the capital invested and even the rental proceeds under the circumstances prescribed by RBI have also encouraged NRI investments in real estate. Capital gains can be taken back after paying capital gains tax. Apart from India being a safe destination, 10 to 12 per cent returns on the investments are very likely to come.

As opposed to earlier times when an NRI had to struggle with Municipal rules, income tax and wealth tax issues, succession legislations for all religions, the Hindu joint family Act, land ceilings and others, these are times that have NRIs being welcomed with a red carpet. The flexibility in rules has elicited an extraordinary response from the NRI community.

The NRI investor can raise finances from financial institutions to purchase an apartment. The Housing Development and Finance Corporation (HDFC) and other financial institutions in India are facilitating the NRI investment in property speedily and efficiently. Though the rates of property tax are slightly different from what Indian residents pay, the NRI also enjoys the same status as any other property owner. NRIs pay property tax to the concerned authorities.

NRIs are considered the safer bet eligible for availing a home loan in India facility to purchase a property in India as they are prompt on repayment. The repayment of the home loan can be made through a normal banking channel by way of inward remittance. For those who earn an income in India through rent, dividends, pension, etc the loan can be repaid by way of direct debit into the accounts of Non-residents (External) [NRE] or Non-resident Indians. The existing balances in the Non-Resident (Non-Repatriable) rupee accounts have been allowed to be credited on maturity to convertible NRE account. This has boosted the real estate business.

The rules relating to investment and repatriation have been liberalized to the advantage of the NRIs. Foreign exchange dealers have been suitably empowered to deal with the matter of remittances. NRIs are free to repatriate in foreign currency their current earnings in India such as rent, dividend, pension, interest and the like based on appropriate certification. Online NRI banking in India and these accounts for NRIs have made life much easier for transactions involved in NRI investment in India.

What has also made NRIs flock to India has been the initiative by builders and real estate dealers to ensure transparency about the projects on offer and fairness in dealings. NRIs consider their investments to be safe and rewarding when they park their money in real estate India.

Many developers in Mumbai, Gurgaon, Pune, Delhi, Gujarat and Kerala have decided to plan expensive projects. The vast majority of NRIs is spread across the globe is one of the prime reasons that a large number of builders and developers are making painstaking efforts to woo the non-resident Indian. The Indian real estate developers are leaving no stone unturned in tapping the overseas markets. High-quality construction in India is attracting huge NRI investment in real estate. The surge in demand came as soon as the investment laws were revised to aid NRIs in moving their investments freely in and out of the country.

Group housing for NRIs is also being contemplated. The general pattern in investment shows that NRIs are investing in residential property in the above average and high segment.

NRIs are welcome to participate in real estate investments by way of huge investments in the construction of residential and commercial projects, SEZs and infrastructural facilities The pan Indian interest in property buying has spawned a new league of businessmen who pitch in for tracking and tracing of property and offer customized investor services to NRIs. Gulf NRIs have been buying property in India over the years to have a good real estate portfolio back home.

 

Disclaimer : Views expressed here are personal .Kindly consultant legal expert while taking any decision regarding investments in Real Estate.. V Client Wealth Advisory Services Pvt Ltd will not be responsible for any losses due to regulatory procedures.

SYSTEMATIC INVESTMENT PLAN

Systematic Investment Plan (SIP) is a convenient way to accumulate wealth in a disciplined manner over a long-term period. It helps one to invest regularly in small installments and thereby build wealth over a period of time. Mutual Fund SIP is similar to a Recurring Deposit. Every month on a specified date an amount you choose is invested in a mutual fund scheme.

Let's assume an individual invests Rs. 10000 per month. The amount invested in:

One year: Rs. 120000

Three years: Rs. 360000

Five years: Rs. 600000

The amount at the end of the respective years along with their percentage returns are given in the table below:

SIP Returns

Name of the fund	Amount (2009-10)		Last 1 year return* (%)	Amount (2007-10)		Last 3 years return* (%)	Amount (2005-10)	Last 5 year return* (%)
UTI Master Value Fund	149268.15		24.39	602257.16		67.29	1064781.49	77.46
HDFC Top 200 Fund	139783.61		16.49	549221.76		52.56	1084387.96	80.73
IDFC Premier Equity Fund	154568.4		28.81	621438.79		72.62	1280282.91	117
DSP Blackrock Top 100 Equity Fund	132331.86		10.28	485731.2		34.93	980481.51	63.41

Note: This is not an exhaustive list of mutual funds for SIP. These funds are shown for illustrative purpose only.

*Absolute returns

 

Benefits of Systematic Investment Plan

• Average out on market fluctuations
  

  by investing through SIP route. This strategy helps in buying more units when the price is low and lesser units when the price is high. However, over a period of time these market fluctuations are generally averaged. And the average cost of investment for an investor is reduced.
  

• Increases returns

  
  through the concept of 'power of compounding'. Mutual Fund SIP if continued for long term helps in accumulating additional units every month hence returns are generated on additional units as well as on the whole corpus built through SIP. Thus increasing returns through compounding effect.
  

• Invest disposable funds

  
  that might otherwise lie in Savings accounts, earning low interest and letting inflation eat into them.
  

• Timing of the market is not required on part of the investor.

  
  

A small sum invested every month from the beginning of your work-life can lead to a very impressive amount at the time of one's career. Why wait? Start systematic investment today to reap the benefits in future…..

Client Meet ...

We had organised Client Meet on 4th Sep ,2010 at RCSC , CP , New Delhi at 7:00 P M onwards .

Mr Rakesh Trikha ( Regional Head , UTI Mutual Fund ) , Mr R Raja ( Sr VP & Product Head , UTI Mutual Fund ) , Ms Sonali Mishra ( IC , Centre for Governance & Asst Prof , Delhi University ) & Mr Nikesh Choudhary ( Director & Research Head , V Client Wealth ) were among the key speakers.

Mr Trikha & Mr R Raja had discussed about the investment opportunities in Equity & debt Markets.They also discussed about the some of UTI Mutual Fund Schemes.

Ms Mishra dicussed how to get your grievances solved in Delhi .Mr Nikesh Choudhary discussed about the investments strategies accross different asset classes.

After discussion it was dinner there .

It was a very informative session & many of the clients appriased the event & also the advisory & sevices of Team V Client

Invitation Card for the Investor Meet.........

Wealth Creation & Management Seminar ...

Wealth Creation & Management seminar will be organised by V Client Wealth on 4 Sep ,2010 in Russian Culture Centre , Connaught Place , New Delhi at 7 : 00 PM

Missing MF Agent...

Investor Education Seminar

We are going to organise Investor Education Seminar in July ,2010
Key Speaker from Leading Mutual Fund House will be there to discuss about the investments in equity through Mutual Fund.

Regards ,

Team V Client Wealth