Singapore happens to be a popular destination among non-resident Indians (NRIs) to work and live as it has world-class facilities. The country has low taxes but the cost of living is massive. If you happen to be an Indian based in Singapore then it’s pertinent to deal with your money matters appropriately. So, today let us look at some of the ideal investment options for NRIs in the country.
Central Provident Fund
This happens to be a job-oriented savings initiative. Over here, both employer and employees chime in with monetary contributions. The money thus ploughed in by both the parties gets collected in three accounts:
- Ordinary Account (OA)
- MediSave Account (MA)
- Special Account (SA)
As the contributors turn 55, a Retirement Account (RA) gets opened for them. All the accounts with the exception of the Ordinary Account (2.5 to 3.5 percent) offer interest rates in the range of 4-5 percent.
Real Estate Investment Trusts (REITs)
The realty market is worth considering for investment purposes as it is a highly regulated one. Rather than purchasing a premium property, NRIs can invest in REITs. These happen to be investment plans to own and invest in a variety of high-income generating properties. NRIs have the option of investing directly in REITs through a trading account or indirectly through UTs or via REIT exchange-traded funds. As the portfolio is diversified the risk also gets minimized.
The unit trust happens to be a fund where money invested by diverse investors is collected together and dealt with by a fund manager. The fund manager ploughs in the entire collection in several investment domains based on the nature of unit trust and its aims. The best part with the UTs is that NRIs have the option of choosing a unit trust on the basis of the risk involved and investment objective. Also, the investments are dealt with by a professional. However, your views on individual investments will not be entertained, and even the returns are not certain.
These are good options for the NRIs to park their money in Singapore. Traditionally, investing in stocks has been very fruitful as investors have usually made a killing when the prices of certain stocks have reached north. However, NRIs need to tread with caution as stocks are not risk-free. While investing in the stock market NRIs need to do a lot of research and learn about the previous trends regarding stocks. They must also have the financial strength to weather the market volatility.