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Why a Mutual Fund that invests in US Stocks Could Be the Key to Long-Term Wealth

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April 10, 2023

Summary

What’s Inside

Digitization in every segment has made it easier to invest in various schemes and compare the potential benefits first. These days, you can invest in mutual funds that invest in US stocks from India.

Investing wisely is crucial to make the most of your hard-earned money. Only investing in Indian companies would not give your portfolio international exposure and the returns associated with that. But choosing Indian mutual funds investing in US Stocks can help you to achieve this.

Benefits of Investing in Mutual Funds with US Stocks

Here we have shared some fundamental reasons and features behind selecting mutual funds investing in US stocks and maximizing your profit through them.

Buy in Fractions

You have to buy at least one unit when you are investing in the Indian market. However, mutual funds that invest in US stocks let you invest in a fraction of the stock through stock tokens. Thus, you can start investing with limited capital and still get the stocks of industry giants like Google or Tesla.

Access to Multinational Stocks and Companies

You can buy stocks of growing multinational companies like Google, Facebook, Amazon and so on. The growth in your investment portfolio will be significantly higher when you choose mutual funds that invest in US stocks. You can join these rapidly growing businesses and get better returns from your investment.

Significantly Higher Returns

Some of the biggest companies in the world are part of the US stock market. Thus, if you can choose the mutual funds investing in US stocks, specifically in industry giants like Google, Apple, and Tesla, you will earn higher profits.

The top tech giants of the US consistently produce greater returns when compared to the Indian companies. Thus, they are more profitable for investment.

US Dollar Appreciation Benefits

The Indian rupee is steadily falling against the US dollar. Thus, the value of your investment in Indian currency also gets affected. But the dollar-based assets in your investment portfolio remain unaffected by the depreciation. The net result will be higher returns in the long run.

Reduced Market Volatility

The US market is comparatively more stable than the Indian market. As a result, you get assured profit when you choose Indian mutual funds investing in US stocks. Fi Money lets you invest in mutual funds sans any commission. The intuitive user interface has all the information to help you choose the best mutual funds.

Investing in Indian mutual funds and investing in US stocks have made it easier for people to improve the returns on their investments. Maximize your earnings for the future when you are choosing suitable mutual funds that invest in US stocks.

Still curious? Learn more about how to get started with investing in US Stocks through this short video: https://www.youtube.com/shorts/VywxVwa-9nM

Frequently Asked Questions

1. Why are US stocks a good option for long-term wealth?

The US Stock market is comparatively less volatile than the Indian stock market. As a result, there is a lesser risk when you diversify your money to various US companies in their stock market.

2. How do mutual funds investing in US stocks work?

You can invest in the US stock market through various mutual fund schemes. They work through the foreign equity market and diversify your investment portfolio.

3. What are some potential risks associated with mutual funds investing in US stocks?

Some risks associated with mutual fund investment in US stocks are effects of currency fluctuation, economic or country-specific risks, taxation and interest rate troubles, and regulatory risks.

4. How do I choose a mutual fund that invests in US stocks?

Presently you can only invest in US stocks through US-focused international mutual funds. These are generally FOFs or overseas Funds of Funds. Several mutual fund options popular in India invest in US stocks.

5. What is the historical performance of mutual funds investing in US stocks?

As per the latest records from the financial year 2021- and the 10-year average, mid-cap US stocks have given a 24.51% return in 2021 and 12.94% on average over 10 years.

Disclaimer

Investment and securities are subject to market risks. Please read all the related documents carefully before investing. The contents of this article are for informational purposes only, and not to be taken as a recommendation to buy or sell securities, mutual funds, or any other financial products.
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