21% of NRIs in Singapore are influenced by global investment trends, study finds

India's investment environment offers attractive opportunities for non-resident Indians (NRIs) looking to diversify their portfolios. This is because NRIs have a wide variety of options to choose from, ranging from traditional options like real estate and stocks to modern avenues like startups and angel investments, and can choose according to their risk preferences and financial goals.

A thriving Indian economy, thriving startup ecosystem, and supportive government initiatives collectively offer opportunities for attractive returns. Additionally, NRIs often bring innate knowledge and connections to the Indian market, helping them make informed investment decisions.

In line with the dynamic investment opportunities in India, investments in NRIs are also consistently increasing. Although India's investment environment has proven favorable for his NRIs, the important aspect of considering time horizon while formulating a financial strategy is often overlooked. In this context, SBNRI, India's largest NRI-centric investment platform, conducted a recent study that revealed the all-important factors that influence NRIs' decisions regarding long-term or short-term investments.

Commenting on the lack of awareness regarding investment time frames, founder Mudit Vijaybergiya said: SBNRI “India has emerged as an attractive investment destination for NRIs, offering them a wide range of options and portfolio diversification. However, the choice between long-term and short-term investments depends on the steering of the geopolitical funnel. , risk tolerance, and tax implications, there are many factors that come into play when it comes to diversifying your investments, which can be exhaustive.”

According to the SBNRI survey, 18% of Canada-based NRIs prioritize retirement planning in their long-term investment strategy, followed by 16% in the UK and 12% in Singapore. Conversely, 9% of NRIs in Singapore consider asset protection a top priority, compared to just 2% in the UK and 1% in Canada. Additionally, the report found that only 4 per cent, 3 per cent and 1 per cent of his NRIs in Canada, the UK and Singapore, respectively, weigh education funding when making long-term investment decisions. is shown.

In this context, the SBNRI report found that 8 per cent of Canadian NRIs have adopted an aggressive risk tolerance, whereas only 8 per cent of NRIs in the UK and US share similar trends in long-term investments. It has been revealed that only 8% of In contrast, 4% of her NRIs in the UK prefer a more conservative risk tolerance, and 3% of NRIs in Canada and the US hold a similar opinion. Furthermore, 5% of NRIs in all three countries – Canada, the US and the UK – choose a medium risk tolerance when formulating long-term investment strategies.

In the modern interconnected global scenario, the industrial landscape is significantly influenced by global economic trends and geopolitical considerations. Specifically, factors such as global inflation, interest rates, and trade policy can significantly influence investment decisions, thereby impacting industrial growth and innovation. Additionally, geopolitical tensions can disrupt supply chains, increase input costs, and create obstacles to overall industry expansion.

In line with this trend, the SBNRI report found that 21 per cent of NRIs in Singapore, 15 per cent in Canada and 11 per cent in other countries consider global economic trends and geopolitics as influential factors in their long-term investment decisions. This indicates that academic stability is taken into consideration. Conversely, fewer respondents (4 percent in Canada, 3 percent in Singapore, and 2 percent in other countries) do not prioritize geopolitical stability when developing their long-term investment strategies.

SBNRI's research report shifts the focus to short-term investments and examines the importance of instant liquidity as a key factor. After detailed research, the report highlights that while only 1% of NRIs in Australia and the UK consider immediate liquidity to be a key determining factor in choosing short-term investments . This compares to 3% in the United States. Nevertheless, this proportion has risen to 7% for UK NRIs and 6% for Australian and US NRIs, with a notable proportion considering immediate liquidity as an important factor in their short-term investment decisions. It shows that there is.

Considering the attractive opportunities attracting NRIs to invest in India, the SBNRI report highlights the importance of tax implications when making investment decisions. About 13 per cent of NRIs based in Canada, followed by 9 per cent in the US and 8 per cent in other countries consider tax implications a very important aspect. In contrast, a smaller percentage (4 percent in Canada, 1 percent in the United States, and 1 percent in other countries) do not place any importance on understanding the impact of taxes on their investments.

Indeed, India has positioned itself as a noteworthy investment destination for NRIs, and there are compelling reasons behind it. The world's fastest growing major economy is attractive to investors looking for big returns. The Indian government is actively promoting NRI investment through initiatives such as the Liberalized Remittance Scheme (LRS) and infrastructure development policies.

As a result, the comprehensive study highlights India's impressive progress and indicates the factors that influence the choices of NRIs when formulating both long-term and short-term investment strategies.