It is difficult to call a foreign land our home. And some people agree on this even after living abroad for a long time. It is because as parents and an older generation, they might prefer life in India. However, some relocate to foreign countries for better opportunities, a better life and higher income so that they can plan well for their post-retirement life. Even if you choose to come back to your domestic land, your children will not be on the same page with you.
In such a case, your first thought could be how to secure your children’s future. And the plan for your children’s future starts with choosing a place and an institution for your children so that they can get a quality education.
If you want to provide your children with better education, you need to look for more avenues to invest. The more flexibility you offer to your children, the better it will be for their future.
As an NRI, another tough decision for you is how and where to invest your savings to gain this corpus.
Here are a few options that you could consider if you wish to save for your children’s future expenses:
Mutual Funds
Mutual funds are a great instrument for a long-term investment as they protect your money from market volatility and offer excellent returns over the tenure. You can invest in Indian mutual funds through SIPs. Moreover, mutual funds offer you the flexibility of investing in global funds. Once you get access to the global funds, you can invest in dollar-denominated funds that safeguard you against currency risks if your child decides to move to a different country for higher studies.
Real Estate
If you want to provide your child with better education, investing in real estate may not sound ideal yet it has a different set of benefits. Finding the right residential or commercial property, which can reap exponential gains or guarantee constant income in the form of lease or rent, becomes pertinent on this count.
PPF
A Public Provident Fund (PPF) account is an excellent investment option from the time you start earning. Although you, as an NRI, are prohibited from opening a PPF account, you can continue to hold your existing PPF account until the scheme matures. The operations from this account are tax-free in India. However, tax implications will be as per the country of your present residence.
