Ways to invest in US Stock Market.


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Uploaded on Jun 24, 2021

PPT on Ways to invest in US Stock Market.

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Ways to invest in US Stock Market.

Ways to Invest in US Stock Market How to Invest in the US stock Market from India? • There are two distinct ways of investing in the US stock market from India: – Direct investment in stocks – Indirect investment in stocks via mutual funds or ETFs Source: groww.in Reasons to Invest in US Stocks from India • Historically, the US stock market indices have been less volatile than the Indian stock market indices. • Most mega global corporations are headquartered in the US that offers you a more diversified investment avenue. Source: groww.in Reasons to Invest in US Stocks from India Cont. • The US stock market has outperformed the Indian stock market over the last decade in pure dollar terms. • With the US being at the center of global innovation, you can invest in a promising company during its initial stages. Source: groww.in Direct Investments • You can invest in US stocks directly by opening an overseas trading account with a domestic or foreign broker. Source: groww.in Opening an Overseas Trading Account with a Domestic Broker • Many domestic brokers have tie-ups with stockbrokers in the US. They act as intermediaries and execute your trades. • You can open an overseas trading account with any such broker. You might have to submit a set of documents to open this account. Source: groww.in Opening an Overseas Trading Account with a Foreign Broker • You can also open an overseas trading account directly with a foreign broker with a presence in India. Some such brokerages are Charles Schwab, Ameritrade, Interactive Brokers, etc. Source: groww.in Indirect Investments • Like domestic investments, you can take an indirect position in US stocks without investing in them directly. Source: groww.in Mutual Funds • This is the easiest way to invest in stocks listed on exchanges outside India. You don’t need to open an overseas trading account or maintain a minimum deposit that can be the case with some stockbrokers offering direct international investments. Source: groww.in Exchange-Traded Funds (ETFs) • You can also gain exposure to US stocks by investing in ETFs. There are direct and indirect routes available for ETFs. You can purchase US ETFs directly via a domestic or international broker or purchase an Indian ETF of international indices. Source: groww.in International investing • International investing attracts more charges as compared to domestic investments. Look for the account charges, brokerage, and currency conversion charges, etc. Hence, ensure that you understand all charges well. Source: groww.in