It's no secret that you can invest in US stocks from India (if you were not aware of this, here's a quick read to bring you up to speed on US Stocks investment from India!)
There's a lot of buzz surrounding foreign investments gaining momentum in India. A quick scroll through social media is all it takes to notice that the desire to invest in US stocks from India has risen exponentially. Yet, this interest isn't limited to veteran investors alone — but applies to regular folks like you and me. After all, we have been reading about the likes of Apple Inc (AAPL), Meta Platforms Inc (FB) of Facebook fame, and Tesla Inc (TSLA) for ages now.
Investing brings with it a wealth of opportunities. Growing up in India, it is hard not to notice the innovative ways people earn money. Whether it’s real estate, gold jewellery or art – if there’s a way to make money from the asset under consideration - Indians look into it. Therefore, foreign investments, particularly US stocks, are no different.
Today, we use many services and products brought to us by many brands, several of which aren’t listed on Indian stock exchanges. These companies provide opportunities for wealth creation, given their global status. Since many of these companies are American (think Microsoft/ MSFT, Amazon/ AMZN, and Johnson & Johnson/ JNJ), investing in them is worthwhile. Trading in such US stocks from India can help you boost the overall returns of your investment portfolio.
If you’ve ever had a tryst with investments, you’re likely to be aware that the mantra that’s repeated day in and day out is “diversification”. This holds regardless of the asset class under consideration.
Given its importance, it should come as no surprise that by investing a fraction of your assets in foreign markets, you can help diversify your portfolio. This will help reduce your portfolio’s dependence on the Indian economy and Indian stock markets.
Mutual fund houses are a great place to start as they provide feeder funds that, in turn, offer routes to international funds.
The value of investing via feeder funds lies in that they are a convenient way of acquiring exposure to foreign investments. This is evident because there's no cap on the amount you can invest, and the applicable taxation policies are clear from the get-go.
A feeder is an investment fund that pools money from individual investors and channels it to a professionally managed larger fund, aka master fund. It reduces operational costs & provides investors with indirect access to the investments held by the master fund — often used to invest in specific geographic locations.
Regulatory authorities brought forth the LRS or the Liberalised Remittance Scheme, allowing Indians to send up to USD 250,000 within a single financial year. While this method of foreign investment has been fairly popular among high-net-worth individuals for a while now, it has been opened up further by several broking firms. These firms have made it easier for all investors to sample US stocks trading from India by entering agreements with leading foreign brokers.
If you begin investing in US stocks from India, you need to be aware of the US stock market timings that apply to American stocks and how they translate to Indian standard time (or IST).
Say you're an investor or trader located in India. You must note that NYSE and NASDAQ open at 8 PM and close at 2:30 AM as per IST. However, while daylight saving time is active (i.e., between the second Sunday in March right up to the first Sunday of November), the US stock market opening time in India is 7 PM IST and closing time is 2:30 AM IST.
Five American technology companies that got the global markets abuzz from the acronym FAANG. This acronym is used to collectively refer to Meta (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Alphabet (GOOGL).
The products and services these companies offer have a strong grip on societies worldwide and are included among the world’s largest companies. As of October 2021, they collectively had a market capitalisation of close to USD 9.29 trillion. Provided you choose to dabble in US stocks from India, finding a mutual fund that invests in the same could help you get in on the action.
Before you get excited about investing or trading in US stocks from India, you must be aware of the 2 following considerations:
Looking for the best US Stocks to invest in? Check out the list here!
Investing in US stocks from India has become increasingly popular, attracting seasoned investors and everyday individuals. Reasons may vary from wealth creation/geographical diversification to reducing reliance on the Indian economy. With clear taxation policies, feeder funds provide a convenient way to access foreign investments. The Liberalised Remittance Scheme and agreements with foreign brokers have made US stock trading more accessible to all investors. However, it's essential to consider taxation and currency fluctuations when investing.
Learn more here: https://www.youtube.com/shorts/VywxVwa-9nM
Fi enables you to invest in top US companies — at industry-best Forex rates. So you can own shares in some of the biggest global brands! With an intuitive user interface, Fi simplifies the world of US Stocks alongside their FINRA-regulated broker partner, Alpaca Securities. Besides in-app explainers, new investors can use Curated Collections to make decisions. Seasoned investors can dive deeper, apply filters & pick from a wide range of international options. What's more, there are zero withdrawal charges for US Stocks on Fi.
Given their superstar status in the tech world, American bigwigs like Microsoft/ MSFT, Amazon/ AMZN, etc., may kick-start your wealth creation journey. Investing a fraction of your assets in the US market can help diversify your portfolio. It also implies that your investment journey is not solely dependent on the Indian economy and Indian stock markets.
As of late 2021 (October), five tech giants in the US had a collective market cap of USD 9.29 trillion. These companies are Meta (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX) and Alphabet (GOOGL). Collectively known in investment circles as FAANG, investing in these US stocks means that your portfolio will also make good strides and get you a slice of that dollar pie.
Indians can take advantage of the US dollar’s rising stature by investing in US stocks in India. As its value increases, your US stock investments do well too. Plus, there’s no cap on the amount you can invest, and the taxation policies are crystal clear. So, invest in diversifying your portfolio.
