Traditionally, NRIs have been more comfortable investing in real estate in India. Real estate investment gave returns in the country at an average of about 14-17% in this decade. Sensex returned 19% in the decade and top-performing diversified equity mutual funds have given returns in the range of 25-30%. Though past performance cannot be a pure indicator of future performance, the pattern will stay true if the Indian economy grows in the 8-9% range in the next decade. So it makes good sense to get a life beyond real estate!
