NRIs have access to most of the same broad investment categories available to resident Indians — equities, mutual funds, fixed deposits, real estate, and government schemes — but each comes with its own NRI-specific rules around account routing, repatriability, and tax treatment layered on top of the ordinary product rules.
Direct equities and mutual funds
NRIs can invest in Indian listed equities generally through the Portfolio Investment Scheme (PIS) route via a designated NRE/NRO account, and in Indian mutual funds directly (subject to individual fund houses' own NRI policies, which vary by the investor's country of residence — US/Canada-based NRIs in particular sometimes face restricted fund availability due to those funds' own FATCA-related compliance overhead). US-person NRIs should read this alongside the PFIC implications of Indian mutual fund holdings before investing.
Fixed deposits
NRE fixed deposits offer tax-exempt interest (in India) and free repatriability; NRO fixed deposits are taxable with TDS withheld and face the standard NRO repatriation ceiling. FCNR (Foreign Currency Non-Resident) deposits are a third option, held in foreign currency, which sidesteps rupee exchange-rate risk on the principal — a materially different trade-off from a rupee-denominated NRE deposit.
Real estate and government schemes
NRIs can generally purchase residential and commercial property in India (agricultural land, plantation property, and farmhouses are typically restricted), with capital gains on eventual sale subject to the LTCG/STCG and Section 393(2) TDS rules covered on the Real Estate Capital Gains page. NRIs are also eligible for the National Pension System (NPS) on the same broad terms as residents, though repatriation of NPS proceeds follows its own scheme rules rather than the general NRO ceiling.