Indians in US, where/how do you invest your money?

Oct 1, 2017 56 Comments

Is there a ELI5 which I can refer to understand my options of investing in US. I've read about vanguard MFs. They seem like a decent option. I don't want to get into real estate(as I like liquidity).
Also, I want to understand if I should invest in 401k(I dont plan to retire in US). Btw, 401k is the us counterpart of indian EPF,right? I feel over long term, the better return from MFs will overshadow the tax-benefits and employer contributions of 401k. Am I wrong in assuming this?

I am fully invested in indian mfs right now. And would like to continue investing in indian market as well as it has much better growth potential.

What do you guys do? How do you invest?

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TOP 56 Comments
  • Cisco NjOl01
    Not sure if this is the correct platform to discuss this. Perhaps go to Quora or Reddit.
    Oct 1, 2017 10
    • Gen!x / Eng
      XPbr65

      Gen!x Eng

      PRE
      Bank of America Merrill Lynch, HPE, Northrop Grumman
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      mehy
      XPbr65more
      Now you have butthurt because you got called out on your BS.

      OP is an Indian that’s asking about investment advice like myriads of other questions. Where the heck are you getting the Vegas Casino bit from?

      Literally every other question under finance is about investing/401k.

      Lord knows I’ve got issues. But not being polite to shit-stains is not one of them.

      You know what your issues are. I won’t spell them out for you. Etiquette lessons can fix me. You, you’re beyond help.
      Oct 1, 2017
    • Cisco NjOl01
      Actually, did more digging on this app, and found people talking about Prostitutes in Seattle and Strip clubs. If I would have seen that post earlier and said something, probably you would have come barking after me and called me some kind of Robinhood. It looks like I am on the wrong app. You guys carry on.
      Oct 1, 2017
    • Microsoft hhmmmm
      Welcome to Blind :) anything and everything goes here as you now know.

      Sorry for jumping on you about it.
      Oct 1, 2017
    • Gen!x / Eng
      XPbr65

      Gen!x Eng

      PRE
      Bank of America Merrill Lynch, HPE, Northrop Grumman
      BIO
      mehy
      XPbr65more
      Not taking the bait. Not going to absolve you of your ass-hattery.

      OP did not ask a question about casinos, or hookers, or blow.

      OP asked a totally legit question in the appropriate section of the app. Yes the question applies to a small number of users but so what.

      Now you’re carrying on about mystery casinos and prostitutes.

      Robinhood? Nah. More like the Sheriff of Nottingham.
      Oct 1, 2017
    • Salesforce Númenor
      ^^ you already proved Cisco is an idiot. Move on dude ;)
      Oct 1, 2017
  • Microsoft War
    Here people don’t talk about investing - it’s all about spending and earning more and showing whose d??k is longer
    Oct 1, 2017 1
    • Amazon / Eng Mohan Das
      OP
      I think we do have some decent folks here. Let's hope they share something usefull.
      Oct 1, 2017
  • In real estate in India. Trust me nothing is better than that. I lost tons of money investing in NYSE :/
    Oct 1, 2017 2
    • Facebook BaseFook
      don't spew out bullshit advice without backing it up. The real estate market in India is down in the dumps. You lost money in nyse because you don't understand how it works , dumbass
      Oct 1, 2017
    • Good for you that you understand. What's your story? Any great advice or just calling out bullshit here on blind?
      Oct 1, 2017
  • Google / Eng I am right
    Invest a lot in India, where returns are higher. NRE FDs, mutual funds, FCNR products. I take the risk on currency fluctuations though.
    Oct 1, 2017 5
    • Synopsys / Eng R&D
      Do the math, it doesn't help effectively!
      Oct 1, 2017
    • Hitachi Vantara / Product
      iotpm

      Hitachi Vantara Product

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      GoPro, United Technologies
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      PM for Industrial IoT with strong engineering, entrepreneurial and PM experience
      iotpmmore
      This is a naive answer. The difference in rates is made up by the depreciation in currency and risk. The markets are efficient.
      Oct 1, 2017
    • eBay :) :p
      Currency and inflation will eat the gains
      Oct 1, 2017
    • Google / Eng I am right
      Well, so far I've made money by currency fluctuations too. Started investing when rupee was close to 70.
      Oct 1, 2017
    • Amazon kGYr10
      Hmmm, IDK, FDs are not at all attractive. It’s under 7% interest now. Plus, there’s income tax on that.

      Presuming you’d invest in FDs for a future in India, with 4-5% inflation, 7% is really really low.
      Oct 3, 2017
  • Google raita
    There's a lot of India specific uestions I cannot answer. However, on a constant currency, inflation adjusted basis, the chances that you will outperform the company match, the tax benefits and the growth seem negligible to me. Of course, you have to wait for retirement so if you want access to the money faster, that's different.

    I m curious about your strong belief in mutual funds: can you point to some funds (and info about expense ratios and sales loads and mgmt fees) so I can take a look, since the growth you're predicting seems fantasy world to me.
    Oct 1, 2017 2
    • Apple SwimDeep
      You don’t have to wait for retirement. You can rollover to an IRA and then withdraw after 5 calendar years (Just over 4 years if you rollover in a December, I suppose).

      I presume OP is talking about mutual funds denominated in Indian rupees. In the long run that’s unlikely to work out well unless the goal is explicitly to save in Indian rupees and avoid any forex gains/risk against the dollar between now and then.
      Oct 1, 2017
    • Google raita
      Right and it sounds like op cares about saving in local currency since they plan to move back. I m just curious about whether the mutual fund takeaway is vastly different in India than in the USA.
      Oct 1, 2017
  • Microsoft adonis
    Wealthfront is a great option for hands free investing. I put a recurring amount every month in it. There are similar robo advisers like betterment.
    I pay .25% of my portfolio per year.
    Oct 1, 2017 1
    • Tableau idontgitit
      +1 for Wealthfront or Betterment. Both are awesome options!
      Oct 1, 2017
  • Partners HealthCare Phjb86
    Investing in India is tricky. It's tricky to bring your money back, and the currency inflation definitely eats up a lot of returns. For example I invested in FD when rates were 8.5% and the rupee was 58. 3 years later rupee was 67 and I lost 10% on my money when converted back to dollars. I'm a big believer in diversification so here's what I do: I max out my 401k (18k/year) and take the match. I also have income deferral that I max out (18k). For the rest, i have one of those robot investment apps where I put $100 per week and I love buying property and being a landlord. I look for investments where I can get about 10% return on my down payment on rent (after taking out mortgage payments). My hope is to build enough passive income to take care of all expenses by 2025 :)
    Oct 1, 2017 1
    • Partners HealthCare Phjb86
      Also someone mentioned real estate in India - that's a bad idea. Rental markets are pretty crap and loans are hard to get and sustain. The return is way better in the US even if property gains aren't as steep. Consistent income is better than just building equity, especially since you like liquidity.
      Oct 1, 2017
  • New / Product
    🔥Mobman🔥

    New Product

    PRE
    Amazon
    🔥Mobman🔥more
    I’m not an Indian but wanted to share about 401K’s. Generally the advice is if you can afford it you should always max out your 401K as profits from assets are not taxed! Some companies offer an employer match up to 10% whatever you put it. Some companies also offer a “SMA” Self-Managed-Account that allows you to buy stocks, MF’s, ETF’s whatever you want just like a regular brokerage firm. The benefit again is that profits you make are tax sheltered where with a regular brokerage account anything you make is taxed based on your income bracket.
    Oct 1, 2017 1
    • Uber yvqX55
      It’s tax deferred. There is a diff
      Oct 3, 2017
  • Amazon razamon
    hotels and motels!
    Oct 3, 2017 0
  • Salesforce SalesDaddy
    Invest in CURRY
    Oct 2, 2017 0

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