Many Canadians with roots in India want part of their wealth to grow where they grew up. Investing in India from Canada can be a smart way to diversify - if you understand the rules.
This guide highlights the key steps for NRIs and Canadian residents and explains how Mode Money Managers™ supports an Invest in India strategy.
1. Decide why you want to invest in India
Before choosing products, get clear on your goals:
- Long-term growth in a fast-growing economy
- Keeping savings in rupees for future use in India
- Supporting family or building assets back home
Your reasons affect how much risk to take, how long to invest, and whether your Indian investments should complement or replace part of your Canadian portfolio.
2. Understand your residency and tax status
Your status matters for both Canadian tax rules and Indian regulations. Questions to discuss with an advisor and tax professional include:
- Are you considered a Canadian tax resident?
- Are you an NRI (Non-Resident Indian) under Indian rules?
- Do you hold Indian citizenship, OCI, or PIO status?
Canadian residents are generally taxed on worldwide income, including interest, dividends, and capital gains from Indian investments. Mode Money Managers™ works alongside your accountant to keep your Invest in India strategy compliant and tax-aware.
3. Learn the basic Indian account types
Many NRI investor use:
- NRE (Non-Resident External) accounts: rupee accounts that allow repatriation of funds
- NRO (Non-Resident Ordinary) accounts: for income earned in India
- Indian mutual funds or other regulated investment products
You do not need to know every detail yourself, but you do need an advisor who can coordinate the Indian side with the Canadian side.
4. Manage currency and concentration risk
Investing in India adds:
- Currency risk between CAD and INR
- Market risk specific to India’s economy and regulations
An Invest in India strategy should be a portion of your overall portfolio, not 100% of it. Mode Money Managers™ helps you decide how much to allocate to India vs Canadian and global investments based on your time horizon and comfort with volatility.
5. Integrate India into your total financial plan
Investing in India from Canada should not be a separate, isolated project. It needs to fit with your:
- Canadian retirement plans
- Debt repayment
- Insurance and estate objectives
Mode Money Managers™ builds a single, coordinated plan that includes your Canadian accounts and your Indian investments so everything points toward the same goals.
Secure your Financial Architecture™ with a consultation.
