Saturday, May 13, 2017

Can NRI Invest in Stock Market and Mutual funds in India?

Yes, NRI can invest in the stock market as well as in mutual funds in India, provided they have an NRE saving account in India. Investing in a Mutual fund is easier than directly investing in Stocks because you don't need a Demat account to invest in the Mutual fund and also there are a lot of restriction applicable to NRI directly investing in Stocks.

So if you don't want to go through the hassle of opening a Demat account and a Portfolio Investment account, required by RBI to keep track of NRI investment on the stock market, it's better to invest in Mutual funds and exchange traded funds.

Saturday, May 6, 2017

Should you take personal loan/ balance transfer in Singapore and pay off a home loan in India?

This is one of the most frequently asked questions among Singapore NRI community. I often receive queries from IT professionals working in the city-state who have home loans back in India and thinking to pay off in full or a portion of them by taking a personal loan or credit card balance transfer in Singapore. Well, the idea to take a loan to pay off another loan only make sense if you are getting a cheaper loan and paying off a higher interest loan. Since most of the home loans in India charges around 9.5 to 11% in INR and you can get personal loan on credit card also known as balance transfer in Singapore for as low as 2.5% for 6 month it make a lot of sense to take a personal loan in Singapore and pay off your home loan in India, though there are some risk which you need to consider. For examples, this only make sense if you have the visibility that you will be in Singapore for next 6 month or more.