Canada-based NRIs more likely to take big risks than those in the UK & US: Survey

India’s investment ecosystem offers NRIs a pool of options and delivers the unique opportunity of diversifying investment portfolios.

The SBNRIs survey report revealed that 18% of Canada-based NRIs, followed by 16% of UK and 12% of Singapore-based NRIs, focus on retirement planning while formulating long-term investment strategies. On the other hand, 9% of NRIs from Singapore give high preference to wealth preservation in comparison to a mere 2 and 1% from the UK and Canada, respectively. Additionally, the report revealed only 4,3 and 1% of NRIs from Canada, the UK, and Singapore, respectively, focus on education funding when making long-term investments.

In tandem with India’s burgeoning investment landscape, there has been a steady rise in NRI investments. While India’s investment ecosystem is undoubtedly a lucrative market for NRIs, many fail to consider the time horizon of the investment as a pivotal element in formulating their financial strategies. Against this backdrop, SBNRI- India’s leading NRI-centric investment platform, has recently conducted a survey revealing key factors shaping their long or short-term investment decisions.

Mudit Vijayvergiya, Founder of SBNRI, said, “India has emerged as an attractive investment destination for NRIs, offering them an array of options and portfolio diversification. However, choosing between long-term or short-term investments can be exhaustive, from navigating the geopolitical funnel and risk tolerance to tax implications. A confluence of factors permeates the investment diaspora.”

Along these lines, the SBNRIs report reveals that 8% of Canada-based NRIs adopt an aggressive risk tolerance while only 7% of NRIs from both the UK and the US adopt an aggressive risk tolerance in long-term investment. Following this, 4% of NRIs from the UK opt for a more conservative risk tolerance, which stands at 3% for both Canada and the US. Furthermore, 5% of NRIs from all countries - Canada, the US, and the UK- opt for moderate risk tolerance when developing long-term investment strategies.

In a fiercely competitive landscape, global economic trends and geopolitical concerns usually affect every facet of the industrial horizon. Being no exception, the SBNRIs report also reveals that 21% of NRIs from Singapore, followed by 15% from Canada and 11% from other countries, are influenced by global economic trends and geopolitical stability when making long-term investment decisions. On the contrary, only a fraction, 4% from Canada, followed by 3% and 2% from Singapore and other countries, respectively, don’t prioritise geopolitical stability while shaping their long-term investment decisions.

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Transitioning into short-term investment, the SBNRIs survey report explores immediate liquidity as a major factor affecting short-term investments. Delving deep, the report showcased that only 1% of NRIs from both Australia and the UK, in comparison to 3% from the US, considered immediate liquidity a critical factor in short-term investment decisions. However, the number increases with 7% NRIs from the UK and 6% NRIs from Australia and the US, which is considered an essential factor.

Considering the lucrative offerings that attract NRIs to invest in India, SBNRI’s report unveils the imperative given to tax implications while making investment decisions. Around 13% of Canada-based NRIs, followed by 9% and 8% from the US and other nations, respectively, prefer considering it an extremely important aspect. While only 4% of NRIs from Canada, followed by 1% from both the US and other countries, don’t place any importance on understanding the tax implications on investments.

There is no denying that India has become the leading investment Hubspot for NRIs, backed by the country’s gigantic long-term and short-term investment offerings. The country demonstrates an astounding economic growth trajectory, and India’s foreign investment sector finds its foundation in its resilient economic behaviour. As a result, the overall survey indicates India’s tremendous progress, showcasing the factors affecting NRIs’ decisions in forging long-term or short-term investment strategies.