Are you a financial investor looking to expand your horizons beyond India? Then the US stock market can be a good place to start. And if you are overthinking about how to invest in the US while residing in India, then you would be amazed to know that the process is quite simple.
Before investing, you must be clear on why it’s beneficial to invest in the US stock market.
- Since the last 10 years, the US stock market has reliably beated the Indian stock market in dollar terms
- Numerous US stocks are global companies, accordingly giving you a more differentiated and diversified portfolio
- Furthermore, ultimately who would not like to wager on imaginative tech organizsations which appear to surround us, be it an Amazon, an Apple , or Netflix?
- Lastly the US stock market is less volatile than the Indian markets
How to invest in the US stock market?
There are two ways through which you can invest in the US stock market from India — either direct investment or indirect investment through mutual funds or ETFs.
Direct Investments
You can invest in the US stocks market straightforwardly by opening an abroad FX account with a homegrown or outsider broker.
Opening an Overseas Trading Account with a Domestic Broker
Numerous domestic brokers have tie-ups with stockbrokers in the US. They go as a mediator and execute your exchanges. You can open an abroad exchanging account with any of such representatives. You may need to present a number of documents to open this account.
Opening an Foreign Trading Account with an Outside Broker
You can likewise open an abroad exchanging account straightforwardly with a foreign agent with a presence in India. Just make sure about the charges before opening the account.
Indirect Investments
Mutual Funds
You can also invest in outside trade by investing in mutual funds into stocks recorded on trades outside India. There are a lot of mutual funds that are used to invest outside India.
Some famous common finances that exchange in worldwide equities are Franklin India Feeder Franklin US Opportunities Direct Fund-Growth, ICICI Prudential US Bluechip Equity Direct Plan-Growth, DSP US Flexible Equity Direct Plan-Growth, Kotak Global Emerging Market Fund Direct-Growth etc..
Investing in ETFs
Investors can likewise purchase ETFs of worldwide records, for example, Motilal Oswal Nasdaq 100 ETF, Nippon India US Equity Opportunities Fund, to get openness to a container of global stocks. This can also be possible by means of similar financier houses.
Investing through New-Age Apps
Since the development of portable applications for various kinds of services, there have been a few apps started by startups to help Indian financial investors into the US stock exchanges.
Points to Remember Before Investing in US Stock Market from India
- Open a foreign exchanging account on the off chance that you have the opportunity and ability to break down the US market and economy and settle on informed decisions
- Global contributing draws in more charges when contrasted with domestic ventures. Search for the record charges, brokerage, and cash change charges, and so forth. Subsequently, guarantee that you see all charges well.
- Investing is more expense proficient than trading in the US market. This is on the grounds that high charges can destroy into the minor benefits that dealers normally make. Long haul investment permits you to acquire sensible returns post-charges as well.
- Start little and increment your speculation as you acquire a comprehension of the US markets.
