Guide to invest in US Stocks From India

 The US stock market is one of the oldest stock markets, making it a desirable option to invest in the Stock market. The reason behind this is the market’s maturity, less volatile nature, and higher returns on investments. The US being the strongest market is home to big firms like Amazon, Apple, Microsoft, etc which gives the investors a chance to be a part of these companies’ tremendous growth.

It is legal to invest in foreign stocks while being a citizen of India. Here is your guide about the ways through which you can invest in US stocks from India.

Invest in US equities

Investing in US equities is quite similar to purchasing stocks in India on Sensex or Nifty 50 platform. This will help you to diversify your investment portfolio making it globalized in terms of investment strategy. The only additional step in this procedure is to set up an international brokerage account which is meeting all the necessary LRS requirements mentioned by the Reserve Bank of India (RBI). To set up this account, you may need to contact an international broker from firms like Winvesta, IndMoney, Stockal, or Vested Finance.

Invest in Exchange-Traded Funds (ETFs)

Another great way of investing in US stocks is with the help of ETFs. ETFs or exchange-traded funds give you good exposure to investing in the US stock market. They provide direct as well as indirect routes to invest and come in different budget options because of their diversified exchange bucket. ETFs can prove to be a good option for advanced as well as beginner investors as they are easy to trade in stock exchange markets. Investors are always suggested to compare ETFs with the help of their broker’s screening tools. The US ETFs can be purchased easily with the help of an international or domestic broker.

Moreover, investing in foreign stock markets has become convenient as well as user friendly and the credit goes to the evolution of mobile applications. There are many applications that allow investors to invest in the US stock market from India. One such easy-to-use application is INDmoney. It offers a zero-cost way to begin investing in US stocks and costs nothing when it comes to opening an account and charging a commission for buying and selling stocks. However, many of these mobile applications may not allow intraday trading in the US because of some legal requirements.

Invest in mutual funds

Making investments in mutual funds offered by the US is also a good way to globalize your investment portfolio. There are multiple schemes offered by the US stock market for different nationalities of the world that offer decent Returns on Investment (ROI). However, it is suggested to look at the requirements carefully before making any investment because many mutual fund schemes follow the indexes for Asia Pacific or Latin American Nations. One can get in touch with their broker for mutual fund suggestions suitable to the investor’s budget.

Invest through NSE IFSC / India INX Global Access

NSE IFSC or NSE International Exchange is a subsidiary of the National Stock Exchange of India that offers investors to purchase stocks in the US directly. The investor can create a Demat account at NSE IFSC and can transfer funds in it by their local bank account to buy and sell stocks. Another similar option is provided by the India International Exchange limited (IFSC), which is an international subdivision of the Bombay Stock Exchange (BSE). This platform allows investors to trade in international stocks in various nations such as the US, Canada, the UK, Europe, Japan, and Australia.

These are a few ways by which investors can diversify and globalize their investment portfolio by making diverse investments in the foreign exchange market of the US.

About Author: Taniya Chamoli is a professional content writer and copywriter with an experience in different niches. She’s always on the lookout for new stories to tell and finds comfort in poetry and coffee.