How to Invest in US Stock Market from India [Free 10-point checklist] So you have started investing and now have got a hang of how investing works. Naturally, you’d like to invest in global stocks next, or US stocks in general. After all, isn’t investing in Apple a dream, or wouldn’t you like to imitate Warren Buffett’s portfolio? Well, before you get too far ahead, let’s come back to reality and start one step at a time. Let’s take you through how to invest in US stocks, what you can’t do, and important things to remember. There’s a downloadable checklist in the end too.
Common FAQs for Investing in US Stocks • • • • • •
Should you invest directly or indirectly? What are the instruments you’ll be investing in? How will the income be taxed? What are the additional charges? What is the maximum & minimum investment amount? Are there any specific rules to consider?
Reasons to Invest in US Stock Markets Investing in the global stock market will help you get exposure to one of the best companies of the world and be a part of their growth story. Have you heard the famous advice of not putting all your eggs in one basket? Investing in US stocks is one way of doing that. It will help you diversify your portfolio. Global stock markets like US and UK are also less volatile than the Indian stock market. Hence, during extreme volatility in Indian markets, your US stocks will help keep your portfolio stable.
How to Invest in the US stock market? You can either invest in the US stock market directly or indirectly from India. Three ways of investing in the US stock market from India: 1. Direct investment through domestic or foreign brokers. 2. Indirect investment in mutual funds and ETFs. 3. Investment in foreign stocks listed on NSE IFSC.
Direct Investment in Foreign Stocks If you are well-versed with the stock markets, then you can directly invest in foreign stocks by opening an overseas trading account with a domestic or a foreign broker. Many domestic brokers have partnerships with foreign brokers. So, you can open an account with them and execute your trades. Some trusted domestic brokers include Axis Securities, HDFC Securities, and ICICI Direct. Alternatively, you can also directly open an overseas trading account with a foreign broker, like Ameritrade, Charles Schwab, Interactive Traders, etc., and execute your trades directly through them. Things to remember: Brokerages have their own charges and may have a minimum deposit amount. So, consider the charges, currency conversion rates, and other details before investing.
Indirect Investment in Mutual Funds and ETFs If you are not yet ready to invest directly in the US stock market, then you can easily invest in them indirectly via. mutual funds and ETFs. You can either invest directly in an international fund or you can invest in an Indian mutual fund that invests in foreign stocks. Apart from that, you can also invest in foreign indices like S&P 500, NASDAQ 100, Dow Jones, etc. by investing in ETFs.
Investment in Foreign Stocks Listed on NSE IFSC The final route to invest in US stocks from India is through NSE IFSC. We wish you all the best on your new journey toward investing in global stocks. Remember to learn about the rules, charges, and how the stock market works, before starting to invest. If you want to learn investing & trading sequentially, then check out our learning map and start learning today. Check out LearnApp today to learn about trading and investing!