Investing from India



This page intends to provide information to retail Indian residents investing in India. While Vanguard is yet to enter the Indian market, it is possible to apply the Bogleheads principles for portfolio construction. This page provides information on available investment options and their features, including the tax treatment of various financial instruments.

Savings and investing in India
Retail investors in India have access to the below:
 * 1) Fixed Deposits (FDs): These are debt instruments similar to CDs in the US. Term ranges from 7 days to 10 years. Balance up to Rs 100,000 at each bank is guaranteed by the government. Deposit can be made at any bank or post office.
 * 2) Recurring Deposits (RDs): These are similar to FDs except that monthly contributions are made instead of an upfront lumpsum. Interest rate and term is fixed upfront.
 * 3) Public Provident Fund (PPF): PPF is a debt saving instrument where investments earn a small spread over the prevailing government bond yields. Interest rate is declared every quarter by the government and entire account balance is fully guaranteed by the Central government. PPF taxation is EEE in nature, meaning that contributions, accumulations and withdrawals are tax-free. Maximum yearly limit for investment is Rs 150,000. The account matures in 15 years and investors can withdraw the entire balance. Alternatively, investors have a choice to extend the account in bunches of 5 years indefinitely.
 * 4) National Pension System (NPS): NPS is a defined contribution retirement plan similar to 401(k) plans offered in the US. The portfolio consists of three components: Equities, Corporate bonds and Government bonds. Investors can choose their asset allocation as per their risk tolerance and age. Portfolio is re-balanced once a year on investor's birthday. NPS taxation is EEE in nature, meaning that contributions, accumulations and withdrawals are tax-free. Investors are required to buy an annuity with at least 40% of portfolio amount on withdrawal on retirement at age 60.
 * 5) (Numbered list item goes here)

Brokerages
Example pages are here: