An Exploratory Study on Factors Influencing NRIs Investment Preferences in Mumbai City of Maharashtra State in India

ABSTRACT

The NRIs are the wealth of our nation. NRI investments impact Indian economy. There is a remarkable growth in the Indian Economy. Around 17 lakhs NRI contribute to the inward remittance. Inward remittance forms around 25-26% of the country’s foreign exchange money. Though India does not heavily depend on this money, but still, it adds up to the economy. The study discusses about the NRI investment preferences. The paper studies that various investment options for NRIs are stocks, mutual funds, Real Estate, Certificate of Deposits, Start-ups etc. out of which majority of the investors prefer Real Estate which was analysed using factor analysis test. About 50% prefer to invest in Real estate which was also stated in recent news that more NRIs are investing in Real Estate. Very few NRIs prefer to invest in Start-ups as they find it riskier than any other investment option. NRIS are a conservative investor as they do not plan on taking higher risk and that leads to the increase of investments in Real Estate or Fixed Deposits or Mutual Funds (Majorly SIPS). Lastly, how EMH (Efficient market hypothesis) influences the perception of NRIs towards investment.

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