Introduction
For Non-Resident Indians (NRIs) and High Net-Worth Individuals (HNIs), staying aligned with the evolving Indian investment landscape is key to wealth preservation and growth. June 2025 witnessed significant developments in taxation, real estate, mutual fund performance, and regulatory clarity—especially through GIFT City reforms. This roundup decodes these shifts and helps you navigate them smartly.
Table of Contents
1. Real Estate Market Pulse
Tier 2 & 3 Cities in Focus
While metros like Mumbai and Bangalore continue to attract investment, NRIs are increasingly looking at cities like Indore, Kochi, and Surat for better rental yields and affordable entry points.
RERA-Approved Projects Preferred
Due to past issues with delayed handovers, NRIs now largely prefer RERA-registered projects with transparent payment schedules and clear titles.
Tip: Use your NRO account for real estate transactions if you’re repatriating rental income later.
2. Mutual Fund Performance Snapshot
Top-Performing Categories
Equity-linked saving schemes (ELSS) and multi-cap funds delivered solid double-digit returns in Q2. NRI investors in SIPs benefited from rupee depreciation against major currencies.
New NRI-Focused Mutual Fund NFOs
June also saw launches of NFOs targeting global diversification and ESG themes. Some are structured to align with FEMA rules, making them easier for NRIs to participate in.
3. New Tax Updates & Implications
Updated TCS Rules for Remittances
From July 1, 2025, new TCS rates apply to outward remittances under LRS. NRIs remitting from NRO accounts should factor this into cash flow planning.
Capital Gains Computation Change
CBDT revised guidelines on indexation benefits for debt mutual funds, affecting those investing through NRO accounts. NRE investors remain unaffected.
Tip: File your ITR annually—even with no taxable income—to simplify repatriation and avoid scrutiny.
4. Opportunities via GIFT City
Why GIFT City Matters
The International Financial Services Centre (IFSC) within GIFT City offers NRI-friendly avenues like dollar-denominated bonds, AIFs, and insurance products with tax exemptions.
New Fund Launches
Several global asset managers launched IFSC-registered funds tailored for NRI investors seeking offshore diversification while staying under Indian regulatory cover.
5. Currency Trends & Impact
Rupee Volatility Continues
The INR hovered around 84.3/USD in June, increasing returns for those repatriating gains to USD or AED. Smart NRIs are using forex-linked instruments and hedging strategies.
Forex Accounts Gaining Popularity
More NRIs are using FCNR deposits for stable returns without rupee risk. Top private banks offered up to 5.5% interest for 1–3 year deposits.
6. Smart Alternatives for June–July 2025
- REITs with exposure to commercial real estate in Pune & Hyderabad
- AIFs in renewable energy or tech-focused sectors
- Digital gold for short-term diversification
- USD-denominated NCDs available through IFSC platforms
FAQ Section
Q1: What is the best investment option in India for NRIs in June 2025?
Equity mutual funds, REITs, and IFSC funds stood out based on performance and tax efficiency.
Q2: Are there any new tax changes NRIs should know?
Yes, TCS on remittances and changes in indexation for debt funds were major updates.
Q3: Is GIFT City a safe place to invest?
Yes, it’s regulated under IFSCA and offers several tax-efficient products for NRIs.
Q4: Can I invest in mutual fund NFOs from abroad?
Yes, provided the fund accepts NRI investments and complies with FEMA guidelines.
Q5: Should I convert funds to INR before investing?
Not always. Platforms like GIFT City allow dollar investments, eliminating the need for conversion.
Related Posts You May Like
👉 https://www.globalnriadvisor.com/best-mutual-funds-for-nris-2025
👉 https://www.globalnriadvisor.com/nre-vs-nro-account-differences
👉 https://www.globalnriadvisor.com/nri-taxation-guide-india
Conclusion
June 2025 brought key developments that NRIs can’t afford to overlook—from GIFT City expansion to tax recalibrations. Whether you’re investing in real estate, funds, or alternative vehicles, staying informed is your edge. Align your portfolio with current reforms, leverage global currency movements, and consult your financial advisor before deploying capital. With the right strategy, your cross-border wealth can flourish securely and efficiently.