
Picture this: You're earning well in Dubai, sending money home occasionally, maybe even have some savings sitting in your NRE account.
But when someone asks, "How much do you need to retire comfortably in India?" you draw a blank.
You're not alone. At Belong, we speak with hundreds of NRIs every month who earn six figures but haven't calculated their retirement number.
Many assume ₹2-3 crores sounds safe. But is it really enough when your children's education might cost ₹30 lakhs and healthcare inflation runs at 12-14%10-12% annually?
This guide breaks down three popular retirement investment options - SIPs, fixed deposits, and mutual funds. We'll show you real numbers, tax implications, and how to build a retirement corpus that actually works. Whether you're 30 and just starting or 50 and catching up, you'll find a strategy here.
Plus, if you're tired of piecing together advice from WhatsApp forwards and confused blogs, join our WhatsApp community where thousands of NRIs share real experiences and ask tough questions.
Why Most NRIs Underestimate Their Retirement Corpus
Let me share something we see often. Many NRIs fall into what wealth advisors call the "HENRY" trap - High Earners, Not Rich Yet.
You earn ₹₹4.4-5.315-20 lakhs per month in the UAE. That's roughly $5,000-6,000. You afford good schools, nice vacations, maybe a car upgrade every few years. Life feels comfortable.
But here's the reality check: Most HENRYs are in their late 40s or early 50s and have only recently recognized the necessity of meticulous retirement planning.
The issue? Living expenses abroad consume most of your income. Savings happen irregularly. And when you finally think about retirement, you're 15-20 years behind.
👉 Tip: If you haven't calculated your retirement corpus yet, you're already behind. The good news? It's never too late to start.
Here's what makes NRI retirement planning different from resident Indians:
The Real Costs NRIs Forget to Account For
Currency fluctuation risk - That ₹5 crores you saved? If the rupee depreciates another 20% over the next decade, your purchasing power drops significantly. Track real-time INR-USD movements to understand this better.
Medical inflation - Medical costs in India are rising faster than general inflation. Comprehensive health insurance for a family of four can cost ₹1-2 lakhs annually and top-up covers are often needed for critical illness or senior care.
Plan for at least 20% of your monthly budget for healthcare. That's before accounting for major surgeries or long-term care.
Supporting extended family - Many NRIs provide financial support to parents or siblings. This rarely stops after retirement. Factor in ₹30,000-50,000 per month if you're planning to help family.
Children's higher education - In India, specialized degrees can cost between ₹1020-2530 lakhs. If your kids want to study abroad, multiply that by 3-4x.
Geographic cost differences - Retiring in a tier 2 city like Jaipur, Kochi, or Lucknow may cost you almost half of a metro like Delhi or Mumbai. Your corpus requirement changes dramatically based on where you settle.
How Much Do You Actually Need to Retire in India?
Let's do the math properly. Not vague estimates, but actual calculations based on your lifestyle.
The Framework: Working Backwards
Here's how financial planners calculate retirement corpus:
Step 1: Estimate your current monthly expenses in India
If you're living abroad, this requires homework. What would your lifestyle cost if you moved to Bangalore or Pune today?
A comfortable mMiddle-class life in a tier-1 city: ₹1.5-2 lakhs per month An Upper-middle-class lifestyle: ₹2.5-3.5 lakhs per month
Ppremium lifestyle with travel: ₹4-6 lakhs per month
Let's use ₹2 lakhs per month as our baseline. That's ₹24 lakhs per year.
Step 2: Factor in inflation
If we account for an annual inflation rate of 6%, the ₹2 lakh needed at age 41 becomes ₹40 lakh per annum by age 51 and nearly ₹73 lakh per annum by age 61.
👉 Tip: Don't use the reported 4-5% inflation numbers. Real inflation for your lifestyle (education, healthcare, comfort) runs closer to 6-8%. Use 7% to be safe.
Step 3: Calculate total corpus needed
To earn ₹2 lakh a month now, accounting for inflation and an assumed life expectancy of 85, Ravi and Shruthi require a retirement corpus of ₹7.5 crore.
- Optimistic scenario: 5% inflation, 8% returns (lower corpus needed).
- Pessimistic scenario: 7% inflation, 6% returns (higher corpus needed).
(The range represents the average variability based on these fluctuations, with the base (6% inflation, 7% returns) falling in between)
Monthly Need Today | Age Now | Retirement Age | Life Expectancy | Corpus Required (Range) |
---|---|---|---|---|
₹1.5 lakhs | 35 | 60 | 85 | ₹10.3 - ₹25.8 crores |
₹2 lakhs | 40 | 60 | 85 | ₹10.7 - ₹24.6 crores |
₹2.5 lakhs | 35 | 60 | 85 | ₹17.1 - ₹43.1 crores |
₹3 lakhs | 45 | 60 | 85 | ₹12.6 - ₹26.3 crores |
Assumptions: Inflation 5-7%, post-retirement returns 6-8%, conservative withdrawal strategy (sustaining expenses from retirement age to 85). Calculations use the present value of an inflation-adjusted growing annuity formula.
Here's a quick reference table:
Monthly Need Today | Age Now | Retirement Age | Life Expectancy | Corpus Required |
---|---|---|---|---|
₹1.5 lakhs | 35 | 60 | 85 | ₹5.2 crores |
₹2 lakhs | 40 | 60 | 85 | ₹7.5 crores |
₹2.5 lakhs | 35 | 60 | 85 | ₹8.7 crores |
₹3 lakhs | 45 | 60 | 85 | ₹9.8 crores |
(Assumptions: 6% inflation, 7% post-retirement returns, conservative withdrawal strategy)
Feeling overwhelmed by these numbers? Here's the encouraging part: you don't need to have this entire amount sitting in your account on day one of retirement.
The corpus keeps working for you even after retirement. That's why your investment choice matters.
Use our Residential Status Calculator to understand your tax status, which affects how much you need to save.
Also Read - How Much Money Does an NRI in the UAE Need to Retire Comfortably in India?
Understanding Your Three Main Options
Before we compare them, let's clarify what each option actually means for you as an NRI.
Option 1: SIPs (Systematic Investment Plans)
A SIP for NRI means a Systematic Investment Plan that allows Non-Resident Indians to invest in mutual funds and insurance plans in India through regular, small installments over time.
Think of SIP as a disciplined way to invest. Every month, a fixed amount (say ₹25,000) gets deducted from your NRE or NRO account and invested in mutual funds.
How it works mechanically:
You set up an auto-debit instruction. On a chosen date each month, your bank sends money to your chosen mutual fund. You buy units at whatever the market price is that day.
When markets are low, your ₹25,000 buys more units. When markets are high, it buys fewer units. Over time, this averages out your cost - a concept called rupee cost averaging.
Types of SIPs available:
- Equity SIPs - Invest in stock market funds (high risk, high potential return)
- Debt SIPs - Invest in bond funds (lower risk, moderate returns)
- Hybrid SIPs - Mix of both equity and debt (balanced approach)
- ELSS SIPs - Tax-saving equity funds with 3-year lock-in (good for tax planning)
SIP investment plans in India offer a disciplined approach to investing, enabling NRIs to invest in India's growing market.
You can start with as little as ₹500 per month, though for retirement planning, you'll need much larger amounts.
Also Read - Can NRIs Continue SIPs After Moving Abroad?
Option 2: Fixed Deposits for NRIs
Fixed deposits remain the most popular investment for Indians, including NRIs. You deposit a lump sum, lock it for a fixed tenure, and earn guaranteed interest.
As an NRI, you have four FD options:
NRE Fixed Deposits
- Funded from foreign currency earnings
- Interest earned is completely tax-free in India
- Both principal and interest fully repatriable (you can take it back to UAE)
- Rates: Currently 6.5-7.8% per annum depending on bank and tenure
- Check our NRI FD Comparison Tool for latest rates
NRO Fixed Deposits
- Funded from India-sourced income (rent, dividends, pension)
- Interest is taxable at 30% TDS
- Repatriable up to $1 million per financial year
- Rates: Similar to NRE, around 6.5-7.8% per annum
FCNR Fixed Deposits
- Held in foreign currency (USD, GBP, EUR, etc.)
- Protects you from rupee depreciation
- Interest and principal are tax-free
- Rates: Currently 2.5-4.5% per annum (lower than rupee FDs)
- Fully repatriable
Also Read -NRE vs NRO vs FCNR
GIFT City Fixed Deposits
- Relatively new option through India's International Financial Services Centre
- Denominated in USD
- Tax-free returns for NRIs
- Rates: Around 5% per annum in USD
- Protection from currency risk
- Learn more about GIFT City benefits for NRIs
Here's the latest rate comparison from major banks (as of October 2025):
Bank | NRE FD (1-2 years) | NRO FD (1-2 years) | FCNR (USD) |
---|---|---|---|
6.00%7.00% - 6.507.25% | 67.00% - 67.25% | 5.003.75% - 5.154.00% | |
6.007.25% - 6.257.50% | 6.007.25% - 6.257.50% | 4.00% - 4.8525% | |
6.00%-6.50%7.15% - 7.40% | 6.00%-6.50%7.15% - 7.40% | 3.90% - 4.15% | |
6.70%-7.10%7.30% - 7.60% | 6.70%-7.10%7.30% - 7.60% | 4.10% - 4.9035% |
Source: ICICI NRI Interest Rates, HDFC NRI FD Terms, Policy Bazaar - FD Interest Rate
(Bank websites, October 2025. (Rates subject to change).
Also Read -Best NRI Fixed Deposit Accounts India Complete Tax & Rate Guide
👉 Tip: If you're risk-averse and want guaranteed returns, FDs make sense. But understand that 7% returns barely beat inflation over the long term.
Option 3: Direct Mutual Fund Investments
This is different from SIPs. Here, you make lump-sum investments in mutual funds whenever you have surplus cash.
SIPs in mutual funds allow NRIs to invest in a basket of stocks or commodities. Depending on the risk appetite, NRIs can choose between equity, debt, hybrid, or even thematic mutual funds.
Types of mutual funds suitable for retirement:
Large-cap equity funds - Invest in India's top 100 companies (Reliance, TCS, HDFC Bank). More stable than mid/small caps.
Multi-cap or Flexi-cap funds - Invest across company sizes. Better diversification.
Debt funds - Invest in bonds and government securities. Lower risk, tax-efficient for longer holding periods.
Hybrid/Balanced funds - Mix of equity and debt. Good for those who want moderate risk.
Index funds - Track Nifty 50 or Sensex. Low fees, passive management.
Multi-asset funds - With a balanced mix of equity, debt, and gold, multi-asset funds are ideal for NRIs looking for consistent returns without high risk.
Also Read - Types of Mutual Funds
How to invest as an NRI:
NRIs can invest in Indian mutual funds by updating their residency status, completing KYC formalities, and opening an NRE/NRO bank account.
Most Asset Management Companies (AMCs) now allow online investment. You can invest from your NRE or NRO account.
Important restriction: Some AMCs restrict NRIs from the US and Canada from investing in Indian mutual funds schemes due to FATCA/CRS compliance requirements.
If you're in the UAE, you won't face these restrictions. But always verify with your chosen fund house.
Belong makes this easier - explore mutual fund options through our platform, or get personalized guidance from our wealth team.
Also Read - NRE vs NRO Account for Mutual Fund Investments
The Real Comparison: SIP vs FD vs Mutual Funds
Let's look at how these three stack up across different parameters that matter for retirement planning.
Returns: What Can You Realistically Expect?
Investment Type | Expected Annual Return | Risk Level | 20-Year Growth on ₹25L |
---|---|---|---|
Equity SIP | 12-15% | High | ₹5.1 - 8.2 crores |
Hybrid SIP | 9-11% | Medium | ₹3.2 - 4.3 crores |
Debt Mutual Funds | 7-8% | Low | ₹2.2 - 2.6 crores |
NRE/NRO FD | 6.5-7.5% | Very Low | ₹2.0 - 2.4 crores |
GIFT City USD FD | 4-5% (USD) + rupee appreciation | Low | Depends on forex |
Lump sum Mutual Funds | 11-14% | Medium-High | ₹4.5 - 7.5 crores |
(These are indicative returns based on historical data. Past performance does not guarantee future returns.)
Key insight: The difference between 7% (FD) and 12% (equity SIP) over 20 years is massive. On ₹25 lakhs invested, you could end up with ₹2.4 crores versus ₹5 crores.
But here's what the charts don't show - volatility. Equity SIPs will have years where they drop 15-20%. FDs give you guaranteed returns without sleepless nights.
Liquidity: When Can You Access Your Money?
Fixed Deposits:
- Most banks allow premature withdrawal with penalty (0.5-1% lower interest)
- Some penalty-free FD options available
- NRE FDs: No interest paid if withdrawn before 1 year
- GIFT City FDs: Often have stricter lock-in terms
SIPs:
- You can stop, pause, or withdraw anytime (except ELSS with 3-year lock-in)
- No penalties for stopping SIP
- Exit load may apply if you withdraw within 1 year (usually 1%)
- Open ended MF Schemes do not have lock-in. However, certain type of MF Schemes, for example, Equity Linked Savings Schemes (ELSS) has a mandatory lock-in period of three years
Lump sum Mutual Funds:
- Same as SIPs - generally liquid
- Capital gains tax applies on withdrawal (more on this below)
Winner for liquidity: Mutual funds and SIPs (except ELSS).
👉 Tip: Keep 6-12 months of expenses in a liquid fund or savings account. Don't lock everything in FDs. You need flexibility as life changes.
Tax Implications: Where Your Money Actually Goes
This is where it gets interesting and most NRIs get confused. Your tax treatment depends on your residential status and type of investment.
For NRE Fixed Deposits:
- Interest income: Completely tax-free in India
- No TDS deduction
- Check DTAA with your country of residence (like India-UAE DTAA)
For NRO Fixed Deposits:
- Interest earned on NRO FD is taxable in India. There will be an upfront tax deduction (Tax Deducted at Source) at rate of 30% plus applicable surcharge and cess
- You can claim refund if your actual tax rate is lower
- Required Form 15CA/15CB for repatriation
For Equity Mutual Funds & Equity SIPs:
Post-Budget 2025, the tax rules changed:
- Short-term capital gains (sold within 1 year): 20%
- Long-term capital gains (held over 1 year): 12.5% on gains above ₹1.25 lakhs
- AMCs will deduct TDS on redemption/dividend payout
For Debt Mutual Funds & Debt SIPs:
- Taxed as per your income tax slab
- No indexation benefit anymore (removed in Budget 2023)
- TDS at 30% for NRIs
For GIFT City Fixed Deposits:
- Tax-free for NRIs
- No TDS applicable
- Returns in USD, so no rupee depreciation risk
- Compare GIFT City FD vs traditional FDs
Check if you can claim DTAA benefits to avoid double taxation. Many NRIs in UAE benefit significantly from this.
Real example:
You invest ₹25 lakhs in an NRO FD at 7%. Annual interest = ₹1.75 lakhs.
- TDS deducted = ₹52,500 (30%)
- You receive = ₹1.22 lakhs
Same ₹25 lakhs in NRE FD at 7%:
- TDS = ₹0
- You receive = ₹1.75 lakhs
That's ₹52,500 more in your pocket every year. Over 20 years, that's ₹10.5 lakhs.
Also Read - Taxation on Mutual Funds
Repatriation: Can You Move Money Back to UAE?
This matters if you're not sure whether you'll retire in India or abroad.
Investment Type | Repatriation Rules |
---|---|
NRE FD | Fully repatriable (principal + interest) |
NRO FD | Up to USD 1 million per financial year after taxes |
FCNR FD | Fully repatriable |
GIFT City FD | Fully repatriable in USD |
Mutual Funds (via NRE) | Fully repatriable |
Mutual Funds (via NRO) | USD 1 million limit applies |
Repatriable investments are those where NRIs can take the money earned in India and send it back to the country they live in. For this, you must use a Non-Resident External (NRE) bank account.
Also Read -How to Repatriate Funds from NRO/NRE Accounts
👉 Tip: If you value flexibility to move money across countries, invest through your NRE account. The $1 million NRO limit sounds high but can get consumed quickly with large redemptions.
Currency Risk: The Hidden Factor
This is huge but often overlooked.
If you invest in INR-denominated products (NRE/NRO FDs, rupee mutual funds), your returns depend partly on how the rupee performs against your base currency.
Example scenario:
You invest ₹1 crore today when USD-INR = 83. In 20 years, you have ₹3 crores (at 7% growth).
If USD-INR = 120 by then (rupee weakened):
- Your ₹3 crores = USD 2,50,000
- Not bad, but less purchasing power if you're thinking in dollars
If you'd invested in GIFT City USD FDs or kept money in dollar assets:
- You'd have grown at 5% in USD without currency risk
- But missed rupee appreciation if it strengthened
Most NRIs retiring in India should tilt towards rupee assets. You'll need rupees for daily expenses. Currency risk becomes an advantage if rupee weakens (your overseas savings become more valuable in India).
For NRIs unsure about retirement location, a 70-30 split (70% rupee assets, 30% dollar/other currency assets) provides balance.
Track rupee movements to make informed decisions.
Also Read - What Happens to Mutual Funds If You Return to India (RNOR → Resident)
The Life-Stage Strategy: What Works When
Your age, risk capacity, and time to retirement should drive your choice.
In Your 30s: Aggressive Growth Phase
Time to retirement: 25-30 years
Risk capacity: High (you can recover from market downturns)
Recommended strategy:
- 70-80% in equity SIPs - You have time to ride out volatility
- 10-20% in hybrid/debt funds - Provides stability
- 10% in FDs - Emergency fund only
Why this works:
The earlier you start investing, the more time your SIP investment has to grow.
Consider someone who starts a ₹30,000 monthly SIP at age 30, compared to someone who starts the same amount at age 40:
Starting at 30 (30 years to retirement):
- Total invested: ₹1.08 crores
- Value at 12% returns: ₹10.5 crores
Starting at 40 (20 years to retirement):
- Total invested: ₹72 lakhs
- Value at 12% returns: ₹3 crores
The 10-year head start creates a ₹7.5 crore difference. That's the power of compounding.
Real advice from our community:
Many 30-something NRIs in our WhatsApp group focus too much on safety and miss growth opportunities. You can afford to take calculated risks now.
Action steps:
- Start a SIP in a large-cap or flexi-cap fund
- Set up auto-increase (step-up SIP by 10% annually)
- Don't check portfolio daily - review quarterly
- Download the Belong app to track and manage investments
In Your 40s: Balanced Growth Phase
Time to retirement: 15-20 years
Risk capacity: Moderate
Recommended strategy:
- 50-60% in equity SIPs/mutual funds
- 20-30% in hybrid funds
- 20-30% in FDs or debt funds
Why this works:
You still have good time horizon for equity, but need to start protecting capital. Market crashes can hurt more since you have less recovery time.
Consider FD laddering:
Instead of one large FD, create multiple FDs maturing at different times. This gives you:
- Regular liquidity
- Ability to reinvest at better rates
- Less interest rate risk
Learn about FD laddering strategies for NRIs.
👉 Tip: This is when you should start diversifying into GIFT City investments. The tax-free returns become more valuable as your corpus grows.
In Your 50s: Capital Preservation Phase
Time to retirement: 5-10 years Risk capacity: Low to moderate
Recommended strategy:
- 30-40% in equity - Still need some growth to beat inflation
- 30-40% in debt funds or FDs
- 20-30% in liquid/ultra-short duration funds
- Consider annuity or pension plans
Why this works:
You're too close to retirement to recover from major market crashes. Preserve what you've built while still growing enough to maintain purchasing power.
Don't make this mistake: Going 100% into FDs. Even after retirement, you'll live another 25-30 years. Inflation will erode FD-only portfolios.
A study on NRIs retiring in India showed those with 100% FD portfolios had to reduce lifestyle within 10 years due to inflation.
Better approach:
Create a "bucket strategy":
- Bucket 1 (years 1-5): FDs and liquid funds - safety
- Bucket 2 (years 6-10): Debt and hybrid funds - moderate growth
- Bucket 3 (years 11+): Equity funds - long-term growth
Withdraw from Bucket 1, while Buckets 2 and 3 keep growing.
Tax-Efficient Withdrawal Strategies in Retirement
Building the corpus is half the battle. Withdrawing it tax-efficiently is equally important.
Sequence Your Withdrawals Smartly
Priority 1: Tax-free sources first
- NRE FD interest (tax-free)
- GIFT City FD returns (tax-free for NRIs)
- LTCG from equity up to ₹1.25 lakhs annually (tax-free)
Priority 2: Tax-advantaged sources
- Long-term capital gains from equity (12.5% tax)
- Debt funds (lower tax slab if your other income is low)
Priority 3: Higher-taxed sources
- NRO FD interest (30% TDS)
- Short-term capital gains (20%)
By sequencing withdrawals, you can significantly reduce tax outgo.
Also Read - How Interest is Taxed on NRI Accounts in India
Example:
Retire at 60 with:
- ₹1.5 crores in NRE FDs
- ₹3 crores in equity mutual funds
- ₹1 crore in debt funds
Smart withdrawal plan:
Year 1-5:
- Live off NRE FD interest (tax-free)
- Withdraw ₹1.25 lakhs annually from equity MFs (LTCG exemption)
- Total tax = ₹0
Year 6-10:
- Start debt fund systematic withdrawal
- Partial equity redemptions (paying 12.5% on gains)
- Total tax = Minimal
This keeps more money working for you while minimizing tax.
👉 Tip: Plan withdrawals with a tax advisor. Small moves (like timing withdrawals across financial years) can save lakhs in taxes.
Understanding DTAA Benefits
If you maintain tax residency abroad (even partially), DTAA can help.
If you face taxation on mutual fund gains in your resident country as well as India, check whether your country has signed a DTAA with India. If so, you can avail yourself of a treaty benefit/Foreign Tax Credit (FTC) in your resident country for the taxes paid in India.
For UAE-based NRIs, the India-UAE DTAA is particularly favorable since UAE has no personal income tax. You only pay tax in India, no double taxation.
If you're in the US or UK, DTAA rules are more complex. Consult a cross-border tax specialist.
Common Mistakes NRIs Make (And How to Avoid Them)
After working with thousands of NRIs at Belong, we've seen these patterns repeatedly.
Mistake 1: Starting Too Late
Irregular savings and waiting to invest later in life is the most common error.
Many NRIs think, "I'll start seriously saving when I get that promotion" or "once this car loan is paid off."
Years pass. Now you're 45 with minimal savings, panicking about retirement.
Fix: Start with what you can afford today. Even ₹10,000 monthly SIP started at 35 is better than ₹50,000 started at 45.
Mistake 2: Keeping All Money in Savings Accounts
We meet NRIs sitting on ₹50 lakhs in NRE savings accounts earning 2.75% interest.
Meanwhile, inflation runs at 6-7%. You're losing money every year in real terms.
Fix: Keep only 3-6 months of expenses in savings. Move the rest to FDs or mutual funds.
Mistake 3: Chasing Returns Without Understanding Risk
Someone in your WhatsApp group mentions they got 25% returns from a mid-cap fund last year. You jump in without understanding:
- It's high risk
- Past returns don't guarantee future performance
- Your risk appetite might be different
Fix: Choose investments based on YOUR goals, timeline, and risk capacity. Not based on what worked for others.
Mistake 4: Ignoring Tax Planning
Many NRIs don't realize they're leaving money on the table with poor tax planning.
Example: Investing through NRO instead of NRE account. Or not claiming DTAA benefits.
Fix: Use our Compliance Compass tool to check if you're following best practices.
Mistake 5: No Diversification
Either 100% in FDs (too conservative) or 100% in equity (too aggressive).
Fix: Build a portfolio based on your age and risk profile. The right mix of safety and growth.
Mistake 6: Not Reviewing Portfolio Regularly
Markets change. Your needs change. That aggressive portfolio from your 30s might need rebalancing now that you're 50.
Fix: Review portfolio every 6-12 months. Rebalance if any asset class exceeds target allocation by more than 10%.
The Hybrid Approach: Why Not All Three?
Here's a truth most articles won't tell you: It's not SIP OR FD OR mutual funds.
For most NRIs, the right answer is a strategic combination of all three.
The 40-30-30 Retirement Portfolio
Here's a balanced approach that's worked well for many NRIs in our community:
40% in Equity (SIPs + Lump sum MFs)
- Provides inflation-beating growth
- Take advantage of India's economic growth story
- Split between large-cap (safer) and mid/small-cap (higher growth)
30% in Fixed Income
- NRE/GIFT City FDs for safety and guaranteed returns
- Debt mutual funds for better post-tax returns than FDs
- Creates a stability cushion
30% in Hybrid/Alternative Investments
- Hybrid mutual funds (balanced equity-debt)
- GIFT City Alternative Investment Funds if you're a high net-worth individual
- Some real estate if you plan to live in India
This isn't a one-size-fits-all formula. Adjust based on:
- Your age (younger = more equity, older = more fixed income)
- Risk tolerance (conservative = more FDs, aggressive = more equity)
- Retirement timeline (closer to retirement = shift to fixed income)
- Return expectations vs. lifestyle needs
Rebalancing: The Key to Long-Term Success
Let's say you start with 40-30-30.
After 3 years, equity markets boom. Now your portfolio is 55-25-20.
You're taking more risk than intended. Time to rebalance:
- Sell some equity
- Add to FDs and debt funds
- Bring it back to 40-30-30
This discipline - buying low and selling high automatically - is what builds wealth consistently.
👉 Tip: Set a reminder to review and rebalance twice a year. Diwali and summer vacation work well for many NRIs.
How to Actually Get Started (Step-by-Step)
Enough theory. Let's talk execution.
For SIPs and Mutual Funds:
Step 1: Complete KYC
NRIs must get their KYC process done by submitting a copy of their passport (only relevant pages with name), date of birth, photo, and address.
Most banks and AMCs accept digital KYC now. Saves you a trip to India.
Step 2: Open NRE/NRO account
If you don't have one, open it with a bank that has good NRI services. ICICI, HDFC, and Axis are popular for their digital platforms.
Also Read -Documents Required for NRI Account Opening in India - Full Guide
Step 3: Choose your funds
Don't get overwhelmed by 1,000+ mutual fund options. Start simple:
- 1 large-cap fund
- 1 flexi-cap fund
- 1 debt fund
That's enough diversification for most people.
Need help choosing? Our best mutual funds guide covers top-performing funds.
Step 4: Set up SIP auto-debit
Start with an amount you won't miss. Even ₹15,000-20,000 monthly makes a difference over 20 years.
Most AMCs allow you to set up SIPs online through their apps or websites.
Step 5: Increase annually
Every year when you get your increment, increase SIP by 10-15%. This "step-up SIP" accelerates corpus building dramatically.
Also Read -Top Indian Banks for Online NRI Account Opening
For Fixed Deposits:
Step 1: Compare rates
Use our NRI FD Rates tool to find the best rates across banks.
Differences of 0.25-0.50% matter when you're depositing ₹25-50 lakhs.
Step 2: Decide on tenure
Don't lock everything in 5-10 year FDs. Create a ladder:
- 25% in 1-year FD
- 25% in 2-year FD
- 25% in 3-year FD
- 25% in 5-year FD
As each matures, you have the option to reinvest or use the money.
Step 3: Choose the right FD type
- Need tax-free returns? → NRE or GIFT City FD
- Have India income to invest? → NRO FD
- Want currency protection? → FCNR or GIFT City FD
Step 4: Book online or visit branch
Most banks allow online FD booking for NRIs. You'll need your account number and OTP access.
Some banks still require branch visit for larger amounts. Check their NRI policies.
For GIFT City Investments:
This is where Belong specializes. GIFT City offers unique tax advantages for NRIs that traditional investments don't.
Through Belong, you can:
- Open USD fixed deposits with tax-free returns
- Invest in AIFs (Alternative Investment Funds) if you qualify
- Access mutual funds and stocks (coming soon to our platform)
Learn more about investing through GIFT City.
What We Recommend at Belong
After analyzing thousands of NRI portfolios and seeing what actually works, here's our honest recommendation:
For Wealth Building (Age 30-45):
- 60% equity SIPs in diversified funds
- 20% debt/hybrid funds for balance
- 20% emergency FD easily accessible
Focus on growth. Volatility is your friend at this stage.
For Wealth Protection (Age 45-55):
- 40% equity for continued growth
- 40% FDs (mix of NRE and GIFT City) for safety
- 20% debt mutual funds for tax-efficient income
Balance protection with growth.
For Wealth Distribution (Age 55+):
- 30% equity to beat inflation
- 50% FDs and debt funds for stability
- 20% liquid funds for expenses
Capital preservation becomes priority.
These percentages aren't gospel. Your situation is unique. That's why we built Belong - to give personalized advice, not generic formulas.
Join our WhatsApp community to discuss your specific situation with experts and other NRIs facing similar decisions.
Take the First Step Today
Here's what won't help: Reading this article, nodding along, and doing nothing.
Retirement planning isn't a weekend project. It's a marathon. But it starts with one step.
Your action plan for this week:
Day 1 (Today): Calculate your retirement corpus need using the framework above. Write down the number.
Day 2-3: Review your current investments. List everything - bank accounts, FDs, mutual funds, real estate.
Day 4-5: Calculate the gap. How much are you short? How much do you need to save monthly?
Day 6: Open NRE account if you don't have one. Start SIP or book FD.
Day 7: Set up auto-debit and forget about it. Let compounding work.
Don't overthink this. Imperfect action beats perfect planning.
How Belong Can Help
We built Belong because NRI investing shouldn't be this complicated.
Through our platform, you get:
- GIFT City USD FDs with tax-free returns and protection from rupee risk
- Easy comparison tools to find the best FD rates across 20+ banks
- Expert guidance from our SEBI-registered advisors
- Community support from 50,000+ NRIs navigating similar decisions
Check current GIFT City FD rates or explore alternative investment funds if you're an HNI.
Most importantly, you're not alone in this journey.
Download the Belong app and start building your retirement corpus the right way. Or join our WhatsApp community to ask questions and learn from other NRIs.
Your future self will thank you for the steps you take today.
Your Questions Answered (Real FAQs from Our Community)
These are actual questions NRIs ask us weekly. Here are clear answers.
"I'm 35. Should I do SIP or lump sum investment?"
Both, but prioritize SIP.
At 35, you likely don't have a massive corpus sitting idle. SIPs let you invest consistently from your monthly salary.
When you do get lump sums (bonus, inheritance, proceeds from property sale), invest those separately in mutual funds.
Don't try to time the market with lump sums. Either invest in phases (systematic transfer plan) or put it in debt/balanced funds if you're nervous.
"Which gives better returns - SIP or FD?"
Historically, equity SIPs have beaten FDs over 10+ year periods.
But FDs give guaranteed returns. SIPs can drop 20-30% in bad years before recovering.
For retirement corpus, you need both. Equity for growth, FDs for stability.
"Can I withdraw SIP anytime or is it locked?"
SIPs allow you to invest a fixed amount periodically in your favorite mutual fund schemes to grow wealth through compounding. SIP for NRIs helps spread the investment over a long period, further reducing the impact of market volatility on overall investment value.
Most SIPs have no lock-in. You can stop contributions or redeem units anytime (except ELSS).
But don't treat SIPs like a savings account. Let them run for at least 5-7 years to see real benefits.
Also Read - Best SIP Options for NRIs – Step by Step Guide
"I heard GIFT City is tax-free. Should I put everything there?"
GIFT City FDs offer tax-free returns in USD for NRIs. That's a strong advantage.
But don't put everything there:
- Returns are lower (5% in USD vs 7%+ in INR FDs)
- You're betting on rupee depreciation to boost returns
- Less liquidity than traditional bank FDs
We recommend 20-30% of your fixed-income allocation in GIFT City. Rest in traditional NRE FDs and debt funds.
"What if I start retirement planning at 50? Is it too late?"
Not too late, but you need aggressive action.
You have 10-15 years to retirement. Here's what works:
- Save aggressively - Aim for 40-50% of your income
- Take calculated risks - 50% equity, 50% debt mix
- Delay retirement slightly - Working till 62-63 instead of 60 makes a huge difference
- Consider part-time work after retirement - Because of better healthcare and quality lifestyle, many people in their 50s and 60s are in the prime of their health. They can earn very well into their 70s or even much later
"Should I invest through NRE or NRO account?"
Use NRE if:
- You're depositing foreign earnings
- You want tax-free returns
- You might repatriate money later
Use NRO if:
- You're depositing India-sourced income (rent, dividends)
- You're sure you'll spend money in India only
Most NRIs should favor NRE accounts for retirement planning. Full repatriation flexibility + tax-free returns.
Also Read - NRE vs NRO Account for Mutual Fund Investments
"Can my spouse (non-working) also invest in SIP?"
Yes, if she has an NRE/NRO account in her name.
In fact, investing in spouse's name has tax advantages. Her capital gains are taxed separately, potentially at a lower rate.
Many NRIs split investments between husband and wife's accounts for better tax efficiency.
"What happens to my NRI status investments when I return to India?"
On change of residential status i.e. from Non-Resident to Resident deposits, resident deposit rate of interest shall be applicable.
You'll need to inform banks and AMCs about your status change. Your accounts convert to resident accounts.
For FDs: Interest rates change to resident rates (usually similar)
For mutual funds: You become a resident investor (same funds, different tax treatment)
Repatriation: You can still repatriate balances from old NRE/FCNR accounts
Plan this transition carefully. Read our guide on converting NRI accounts to resident accounts.
Disclaimer: This article is for educational purposes only and should not be considered personalized financial advice. Investment decisions should be made after consulting with a qualified financial advisor. Past performance of any investment is not indicative of future returns. Please read all scheme-related documents carefully before investing.
Related Articles:
- Best NRI Fixed Deposit Rates in India
- NRI Tax Guide: Everything You Need to Know
- GIFT City vs Traditional Indian Investments
- How to Transfer Money from UAE to India
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