The trigger

The India vs overseas question

Three strategic choices

2. Keep wealth abroad

3. The balanced approach

Mistakes to avoid

Ideal allocation

Non-resident Indians (NRIs) have always kept one eye on India while building their lives overseas. The emotional, cultural, and financial link to home has rarely faded. However, the current wave of geopolitical tensions is prompting many to revisit an old question: should they consider moving back to India?Events such as the ongoing tensions in West Asia have added urgency to these conversations, but they have not necessarily triggered immediate action. Instead, they are nudging individuals and families to think more deeply about the future and reassess long-held assumptions.It is not about everyone suddenly packing up and relocating. For most, the shift is far more subtle. It shows up in how portfolios are being reshaped, a gradual tilt toward India, which increasingly feels like a relatively stable, high-growth destination to anchor at least a portion of their wealth.At the heart of this shift lies a more fundamental question: if one plans to move back, what is the right approach, allocation, and investment strategy?The prevailing environment has meaningfully impacted investors’ minds. For years, many NRIs viewed West Asia, particularly cities such as Dubai, as extremely safe and predictable places to live and build wealth.There is a growing realisation that, in a worst-case scenario, India could be the place that provides both emotional security and financial support. “If the ongoing conflict persists for a long time, we might see more decisive actions. We have started receiving calls from clients expressing concerns about their global assets, indicating that these worries are slowly bothering them. However, it will take time before we can see any concrete actions from our clients,” Himanshu Kohli, Co-founder of wealth management firm Client Associates, notes.For most Gulf-based NRIs, portfolios are typically spread across geographies, but real estate exposure remains concentrated. According to Bhaskar Laxminarayan, Chief Investment Officer–Asia and the Middle East, Julius Baer, “Financial investments have always been very well diversified across geographies, across asset classes. Real estate is the exception, often concentrated and illiquid.”All of these factors are converging into one central dilemma: how should an NRI restructure their wealth in a changing world?When NRIs return to India, the starting point should be a holistic financial plan that clearly maps out their needs, both in their homeland and globally.In India, they must account for lifestyle expenses, which will largely be incurred locally. Beyond that, they need to evaluate significant life goals: children’s education (whether in India or abroad), weddings (which may take place in the country or overseas), and future asset purchases across geographies.This makes it essential to build a comprehensive financial plan that clarifies the allocation of wealth between India and overseas markets.Succession planning is another critical dimension. The location of children, whether they are based in India or abroad, can significantly influence asset allocation decisions. If not planned properly, investors may end up repatriating all their wealth to India, only to face restrictions later when trying to transfer these funds back to children living overseas.“Returning NRIs should ideally view their wealth through a goal-based asset allocation framework, rather than a binary ‘India vs overseas’ choice. For investors looking to build long-term wealth in India, a meaningful allocation to Indian equities makes strong sense, given the country’s favourable demographics, robust economic fundamentals, and a powerful domestic consumption story,” says Harsh Gahlaut, Co-founder and CEO of investment advisory firm FinEdge.One of the biggest advantages of consolidating wealth in a single country is simplicity. Managing investments, taxation, and compliance becomes significantly easier when everything is aligned with a single jurisdiction.India’s strong long-term equity market performance also makes a compelling case. With the exception of the last 18 months, domestic markets have delivered good returns over extended periods. For investors who believe that the coming decade belongs to India, concentrating wealth locally may appear attractive.“This approach provides phenomenal rewards, allowing money to grow at a much faster rate. As a result, they will be able to accumulate more wealth for their children and for their own enjoyment. In such a scenario, where all overseas investments return to India, it is important not to overlook the bigger picture,” observes Kohli.From a taxation standpoint, repatriating funds to India is not, in itself, a taxable event. Tax liability (read story: bit. ly/4sm6RVD) typically arises when income is generated—such as capital gains, interest, or dividends—under the regulations of the country where the assets are held.However, investors must remain mindful of regulatory requirements, documentation, and compliance obligations, including Foreign Exchange Management Act (FEMA) guidelines. “Fully repatriating assets to India generally makes sense when an individual has made a clear decision to relocate and build their future in India permanently. Aligning assets with the country where future expenses and financial goals will arise helps reduce currency-related uncertainties and improves planning efficiency,” says Gahlaut.For some returning NRIs, the idea of keeping most or even all of their investments overseas can appear attractive, especially when their wealth has been built over years in global markets.A portfolio denominated in dollars or other hard currencies offers diversification benefits and, in many cases, access to more mature financial systems and a wider array of investment products. For high-net-worth individuals (HNIs) with business interests abroad or global lifestyles, retaining overseas assets can also ensure continuity and flexibility across jurisdictions.Founder, Full Circle Financial Planners and AdvisorsHowever, this strategy is far from universally suitable and, in many cases, can prove risky or impractical when the intent to return to India becomes firm.“The decision is deeply linked to the profile of the NRI and their long-term plans,” notes Kalpesh N. Ashar, Founder, Full Circle Financial Planners and Advisors.One of the biggest benefits of keeping investments abroad is geographical diversification. Many NRIs, particularly those in the middle-income or affluent salaried segments, tend to maintain a portion of their wealth in global assets such as US equities or international funds.That said, concentrating all investments overseas introduces its own set of vulnerabilities, especially geopolitical and residency risks. Recent escalating tensions across the world have demonstrated how quickly circumstances can change.“This highlights a key drawback of keeping all wealth abroad: exposure to risks that are beyond an investor’s control, including political instability, regulatory changes, or capital restrictions,” says Ashar.There is also a practical dimension. For NRIs planning to settle back in India, future expenses, liabilities, and lifestyle needs will be rupee-based. Keeping all assets overseas can create currency mismatches and complicate financial planning.The best strategy for keeping wealth abroad, in many cases, is to bring back only what is required to sustain a desired lifestyle in India, while gradually moving the remaining capital over time as and when needed. Until then, keeping assets overseas acts as a natural currency hedge.The rupee’s long-term depreciation is a key factor here. “It’s always better to have it in the dollar exposure outside, and that itself may enhance your INR yield,” says Sachin Sawrikar, Managing Partner, Artha Bharat Investment Managers. Note that any foreign income, interest, dividends, capital gains or rent must be reported in the income tax return, along with disclosure of overseas assets under Schedule FA.Non-disclosure can attract strict penalties under the Income Tax Act.Most experts converge on a middle path.As Laxminarayan puts it, “The idea should be to be diversified. Unilateral moves are generally ill-advised.”This reflects how global investors typically behave, allocating assets across geographies, currencies, and life goals.A hybrid allocation between India and global markets is often the most sensible approach, though it ultimately depends on individual goals and future plans. For those returning to India permanently, gradually repatriating investments can improve alignment and efficiency. At the same time, maintaining global exposure helps preserve diversification benefits and reduces concentration risk.Sawrikar also highlights a structural limitation: access. “Private equity, global technology plays, and niche asset classes are often easier to access while keeping money abroad,” he explains.Among the most common mistakes made by returning NRIs is approaching their finances without a structured investment framework in place.In many cases, once funds are repatriated through formal banking channels, they are quickly deployed into products that are actively pushed rather than carefully evaluated. This often results in NRIs falling for mis-selling, especially when decisions are driven by recent performance trends instead of long-term suitability.Another frequently underestimated factor is the importance of choosing the right investment adviser. “Without a processdriven, objective approach, investors can end up with fragmented portfolios and suboptimal outcomes that do not align with their long-term goals,” cautions Gahlaut.At a broader level, all investing involves risk, regardless of geography. Concentrating wealth in a single country exposes investors to both country-specific and currency risks. At the same time, familiarity with the home market often helps investors stay invested through volatility, an important factor in longterm wealth creation.Laxminarayan believes, “If earning in a dollar-based economy, chances are that some might question why they are sending more money into a country with a depreciating currency, while they can buy similar assets or similar-yielding assets outside and keep the dollar back.”As global uncertainties rise, NRIs are reassessing where their money belongs.There is no one-size-fits-all approach to asset allocation. The right mix depends on an individual’s goals, overall balance sheet, and future needs. “The ideal allocation to global assets should be in the range of 10% to 50%, depending on each person’s thought process and time horizon,” says Kohli.In practice, allocation should mirror life goals. Those with overseas commitments, such as children’s education or the possibility of relocation, may require higher global exposure. Conversely, individuals with largely India-centric needs can afford to tilt more heavily toward domestic assets.Opportunities across geographies— from US technology equities to US real estate—may also shape allocation decisions. Ultimately, portfolios should be driven by objectives, not geography.