Non-resident Indians (NRIs) looking to invest in India should first assess their global portfolio, existing India exposure, liquidity needs, risk appetite, tax position and repatriation requirements before committing capital, says Rohit Sarin.

For a portfolio of Rs 1 crore, an illustrative allocation is 55–65% equities, 15–20% fixed income, 5–10% gold and 5–10% alternatives, complemented by real assets and diversification.

According to Sarin, the real test for a serious NRI investor is less about whether they can buy an Indian equity or mutual fund and more about creating a seamless framework for investing, monitoring and eventually repatriating wealth.

The remarks appear in the latest edition of the ETMarkets NRI Talk interview series, published on 22 August 2026, which examines how overseas Indians can structure their India allocations at a time when the rupee has hit Rs 96 per US dollar. The backdrop gives the discussion scale: India has for years been the world's largest recipient of remittances, with inflows the World Bank has estimated at more than $120 billion annually in recent years.

The interview addresses the following questions:

• India continues to attract significant interest from NRIs. What are the biggest hurdles NRIs still face when trying to invest in Indian equities and mutual funds, despite the process becoming increasingly digital?
• With the rupee hitting Rs 96 per USD, has it impacted NRI investments into India? What is the general mood?
• For an NRI looking to invest in Indian stocks, how should one decide between an NRE and NRO account? What are the key differences from an investment and repatriation perspective?
• Are NRIs under-allocated to Indian equities compared with their overall exposure to India? Which asset classes should they consider beyond direct stocks and mutual funds?
• Tax is often one of the biggest concerns for NRIs. How should they think about the tax treatment of equity, mutual funds, bonds, FDs and alternative investments in India?
• Are you seeing greater interest from NRIs in newer products such as AIFs, PMS, private credit, REITs and InvITs? Which could see the biggest growth in NRI portfolios?
• If an NRI has Rs 1 crore of surplus money to invest in India with a 5–7-year horizon, how would you divide it across equities, fixed income, gold, real estate and alternatives?
• Could we see more India-focused global funds or India-domiciled products in GIFT City designed specifically for overseas Indians?
• What new financial product is currently missing from the Indian market that could significantly improve the investment experience for NRIs?

The frictions the interview probes are well documented. A number of Indian asset management companies restrict or decline investments from residents of the United States and Canada, citing compliance obligations under the US Foreign Account Tax Compliance Act (FATCA), while income earned by NRIs on Indian investments attracts tax deducted at source under Indian rules. India also maintains double taxation avoidance agreements with more than 80 countries, which shapes how the same income is taxed across jurisdictions.

Several of the products referenced are established parts of the Indian investment landscape. AIFs (Alternative Investment Funds) and PMS (Portfolio Management Services) serve larger-ticket investors — SEBI's rules prescribe a minimum commitment of Rs 1 crore for AIFs and a minimum investment of Rs 50 lakh for portfolio management services — while REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) offer listed exposure to real estate and infrastructure assets. GIFT City, located in Gujarat, hosts India's International Financial Services Centre, which is oriented toward offshore investors and operates under the International Financial Services Centres Authority. NRE (Non-Resident External) and NRO (Non-Resident Ordinary) are the two principal rupee-denominated account categories available to NRIs: balances in NRE accounts are freely repatriable, while remittances from NRO accounts are capped at USD 1 million per financial year under RBI norms, and the two differ in their treatment for investment and repatriation purposes.