Property or mutual funds? Where should NRIs invest their India-linked wealth? Explained

For many Non-Resident Indians (NRIs), investing in India starts with buying a home. The property offers a connection to India, alongside potential rent and rising value. However, managing investments from abroad requires looking beyond one's comfort zone.

NRiSimplify co-founder Dhananjay Malik said, “NRIs often look at property and mutual funds as competing investment choices, but the real question is not which asset is better; it is what role each asset plays in the overall portfolio.”

Mutual funds provide another route, with professional management and easier access to money. Here are 5 points to consider before choosing where your wealth should go.

Check how much you can handle

Owning property involves more than paying the purchase price. Tenants, rent collection, repairs, property taxes and housing society requirements need attention. Handling these tasks from another country can become difficult. A trusted local representative or property management agency can help.

Mutual funds require less daily involvement because professional managers oversee the investments. This makes them easier to manage across countries and time zones.

“Property can offer tangible ownership and long-term appreciation, but it can also be illiquid, management-intensive and concentrated. Mutual funds, on the other hand, can provide greater diversification, liquidity and flexibility to deploy capital across market segments,” Malik said.