NRIs Lead the Way in Long-Term Investments, Outshining Resident Indians

According to a comprehensive report by FinEdge, Non-Resident Indians (NRIs) are showing a notably stronger dedication to long-term investments than Resident Indians (RIs). The data highlights that over 75% of NRIs have maintained their investments for more than five years, with 65% extending this to over seven years, even through significant market volatility, such as the Covid-19 crash.

In contrast, 68% of RIs have remained invested for five years or longer, with only 57% exceeding the seven-year mark. Additionally, NRIs are committing larger amounts through systematic investment plans (SIPs). The average monthly SIP contribution from NRI clients at FinEdge stands at Rs 6,486, a 58% increase compared to the Rs 4,093 average among resident clients and more than double the Rs 2,900 average across the mutual fund industry.

Harsh Gahlaut, Co-founder and CEO of FinEdge, emphasizes the disciplined, goal-focused investment approach of global Indians, validated by the substantial trust NRIs place in the firm. With the majority of investors aged 31-45, the report underscores a robust cohort of mid-career professionals focused on long-term wealth accumulation. NRIs typically start investing slightly later, possibly due to establishing careers abroad, while RIs demonstrate higher senior participation, indicative of continued investment into retirement.

(With inputs from agencies.)