Where NRI money should go in a falling rupee scenario

When the rupee falls, it is a known fact that resident Indians will have to bear the brunt while non-residents have a chance to reap the benefits.

So what should an NRI do? Should she convert all her dollars into rupees to make the most of a good conversion rate?

A report in the _Business Standard_todayhas a few tips as to how an NRI can use her money.

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NRIs who have their funds in foreign currency non-resident (FCNR) deposits should continue to hold on to their investments, instead of converting into the rupee. Indications are that the rupee would further depreciate.

In fact, at current interest rates, NRIs have an opportunity to lock their funds at high levels for longer period of time with non-resident external (NRE) and non resident ordinary (NRO) fixed deposits. Read more about NRO and NRE accounts here.

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For an NRI, another investment avenue in a depreciating rupee scenario is real estate.According to this _Firstpost_ article , non-resident Indians (NRIs) are among the top five investor communities in Dubai real estate, transactions of which haveincreased by 8 percent to 154 million dirhams in 2012.

Looking at investing in stocks and mutual funds with a time frame of two to three years is also a good option.

Read the full Business Standard report here.