Key Points: Global Diversification Using LRS by NRIs
What is LRS (Liberalized Remittance Scheme) A facility by the Reserve Bank of India (RBI) that allows Indian residents to remit up to USD 250,000 per financial year abroad for permitted current and capital account transactions.
Popular Global Investment Options for NRIs Includes U.S. stocks, ETFs, REITs, global index funds, sovereign bonds, and emerging tech startups like AI and fintech.
Wealth in Dollars Investing through LRS allows NRIs to build dollar-denominated wealth and hedge against INR depreciation.
Fintech Access Several Indian platforms now offer simplified LRS-based global investment services with integrated KYC and fund transfer tools.
Geographic Diversification Helps reduce country-specific risk and tap into global growth stories, particularly in developed economies.
Multi-Currency Portfolios Creating a basket of investments in USD, EUR, and other stable currencies can stabilize returns over time.
Tax Compliance NRIs must track TCS (Tax Collected at Source), foreign tax liabilities, and DTAA (Double Taxation Avoidance Agreement) benefits.
RBI Guidelines Investments must be within LRS rules. Certain high-risk speculative products or leveraged trades may not be allowed.
Risk-Reward Balance Global investing offers opportunity and volatility—NRIs need to match asset choices to their risk profile.
Long-Term Vision Using LRS to invest globally isn’t just trend-driven—it’s a way to build resilient, internationally diversified wealth.
