Let’s understand how much of the money under remittance is actually going into Gold as an asset
Hello readers! I hope you are doing well. We at RemitAnalyst have decided to come up with a blog series to educate our readers about Remittance and its importance in every Indian household where at least a single person is living abroad: be it for education, business or a dream job. This is another blog from the series. Here, we talk about how an NRI can invest in Gold as an Asset.
More than half of remittances received by Indian residents were used for family maintenance, i.e., consumption (59.2 per cent), followed by deposits in banks (20 per cent) and investments in landed property and shares (8.3 per cent)
Source: https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR36122FD7CA9D24A4E268960C275DC8845B4.PDF
We see, we don’t have actual % of it. Even if some part of above % is going into Gold investments indirectly in later stage depending on how money is being actually used. Let’s understand how an NRI resident can invest in Gold as an asset.
Everyone’s favorite metal is Gold. We Indians just adore it and that’s why we love to hold on to it like a privileged asset since ages. Gold is one such asset which never depreciates with time. NRI investors should consider buying Gold in digital formats via below means.
Gold ETF
ETFs trade on the cash market of the National Stock Exchange, like any other company stock, and can be bought and sold continuously at market prices.
Gold ETFs are passive investment instruments that are based on gold prices and invest in gold bullion.
There is a complete transparency on the holdings of an ETF.
Once converted to NRO, you can use it to invest in mutual funds (MFs). You will need to do a fresh MF KYC as an NRI.
Due to its unique structure and creation mechanism, the ETFs have much lower expenses as compared to physical gold investments.
Gold is the only asset after Land which still holds its value, beats the inflation with respect to time and grows exponentially in its worth when you look at it with broad time horizon.
Google Source : NRI and Gold Investments
