NRIs Should Invest Based on Future Financial Goals, Not Current Employment

For US-based Non-Resident Indians (NRIs), deciding where to invest their money can be a complex decision. Many NRIs have emotional ties to India, which drives them to invest back home, but they also want to consider the economic benefits of investing in the US.

Experts say that framing this as an 'India versus US' choice is not the right approach. Instead, investors should ask themselves where they plan to spend their money in the future and allocate their portfolio accordingly.

Viram Shah, Founder & CEO of Vested Finance, notes that India's faster economic growth does not necessarily translate into higher investment returns for NRIs earning and spending in US dollars. Over the 30 years ended March 2026, the Nifty 500 delivered a compounded annual return of about 8.26% in US dollar terms, while the S&P 500 returned around 8.33% annually.

Shah emphasizes that India is not necessarily a higher-return market for NRIs and that its diversification value lies in reducing dependence on a single economy and market cycle. He also highlights the importance of considering currency risk when investing in India, as exchange-rate movements can significantly impact returns.