In case you are asking yourself, “What is UPI?”, you are among the many people who may be confused about the concept. In the payments system of the financial world, this is an important acronym to know as it is a way by which money can be transferred seamlessly.
Simply put, UPI stands for “unified payments interface”. Through this, you are able to make money transfers from one bank account to any other. So, a person can send or receive money or scan a QR (quick response) code for the purpose of payment. The payment is received by a merchant/provider of a service. Through UPI, you can also pay bills and make payment authorisations.
If you are looking to invest in the US stock market, live investment can be done by purchasing stock through UPI. Previously, Indian investors interested in US stocks had a tedious time attempting to purchase stocks. The US stock market today is rife with potential, and now with UPI, transactions have been made far more convenient than before. You can find out more about UPI statistics on the UPI website so you know how beneficial UPI is.
Now that you have the answer to the question, “What is UPI?”, one part of knowing how to invest in the US stock market from India is clear. Besides UPI facilitating the convenience of transactions, it also comes with other benefits, as far as investing is concerned. The process of money transfer via UPI cuts the cost of any fixed fees accompanying the transfer of funds.
Through UPI, anyone is permitted to send funds amounting to a maximum of Rs. 1 Lakh. This may be viewed as a limitation in terms of the capital you can invest in the US stock market today, live trading being an opportunity for you to invest larger amounts. Nonetheless, you can invest initially and more through net banking. Paying by UPI is a huge step in a positive direction as Indians access investment options globally. In the year 2021, there were above 22 billion UPI transactions. You can see how this is a popular payment method.
The Reserve Bank of India (RBI) on 4 September 2023 has announced an extension of the UPI's capabilities by allowing pre-sanctioned credit lines from Scheduled Commercial Banks to be used as funding accounts for transactions conducted through the UPI system. This means individuals can now make payments via the UPI System using a pre-approved credit line from a Scheduled Commercial Bank with prior consent.
Indians have hesitated to invest in the US markets (and any other global markets) in the past since payments were somewhat of a pain point. With UPI, you can effortlessly invest in an array of investments in the USA, from direct equity to mutual funds and ETFs. SEBI, or the Securities and Exchange Board of India, has made foreign investment easier with the relaxation of rules, so nothing is stopping Indian investors now.
With portals like the one that Fi offers investors, you have the choice of the best US companies to invest in. Owning shares of Apple, Microsoft, and the like is no longer a far-fetched dream. In-app knowledge bases and Curated Collections make your stock picks decisive and ideal for your needs.
Investing in the US stock markets from India offers a win-win. American companies boost your portfolio and diversify it in a positive way.
In case you are thinking about the perfect time of day to trade in US stocks, prime-time trading occurs just after the “opening bell” (9.30 am -10.30 am - ET). This is good for day traders, as the volatility is prone to taper off after this. If you are thinking of the ideal time to buy American stocks from the point of view of the current time, that is, in early 2023, then now could be good. For long-term investors, the previous year’s (2022) sell-off has created a chance to invest.
One of the ideal routes is to go through a mutual fund. These funds offer investors feeder funds providing good exposure to the markets. If you know how to invest in the US stock market, it is easy. You can also invest through finance companies and brokerages. Visit Fi to buy US stock easily.
There is no single way to pick stocks. However, some choices could be ideal for you, uniquely. You can choose by visiting a reliable finance company and getting some advice on portfolio management or doing your own fundamental research into US companies. Additionally, you can go the mutual fund way and be exposed to US stocks through a global fund or employ a domestic brokerage that has connections with international brokerages to trade. It is best to choose companies that are highly valued.
