Top 5 Benefits of Investing in US Stocks From India
The desire to invest in US stocks has recently increased among Indian investors. The US stock market, which is open to all investors worldwide, is the biggest in the world of investments.
International investors have a wide range of options on the US stock market, from individual equities to ETFs across a variety of indices and themes. Some of the largest global blue-chip equities are available for purchase by Indian investors who hold Indian securities.
Let’s look at the advantages and the best way to invest in US stocks from India.
Top 5 Benefits You Avail If You Invest In US Stocks
1. Global Exposure
While investing in US stocks, actual exposure to the US economy is very limited because the majority of listed companies in the US are foreign firms that have tapped into the market to profit from numerous investors and to be where the money is.
By purchasing equities from the US market, you will gain access to global and American markets, providing you access to the entire world.
2. Diversification
The US stock market is the best option for Indian investors to diversify their stock portfolio among some of the top international technology, Internet, pharmaceutical, and manufacturing companies. They continue to be at risk from country risk by investing just in one economy. Numerous microeconomic and macroeconomic geopolitical issues have an impact on the economy of a country.
The portfolio is nevertheless subject to concentrated risk in the event of any domestic political and economic unrest. You must diversify your investment portfolio to reduce risk and increase possible profits. Without regional diversification, asset class, market capitalization, and other types of diversification are insufficient.
You can own US stocks in any amount, unlike in India. After all, owning a single share in Berkshire Hathaway, which now trades at around $4,26,850, would cost close to Rs 3.3 crore.
However, you can get a share by investing as little as Rs 5,000 or even less. With enough time and money, you can increase your collection or create a portfolio of US equities.
4. Rupee-Dollar exchange rate
The Indian Rupee has been losing value versus the US dollar, as evidenced by historical data, and additional declines are possible. The gains you receive from foreign stocks depend on the rupee-dollar exchange rate.
Any decline in the rupee value relative to the dollar increases returns on assets with dollar values, such as US stocks. Even if foreign stocks underperform or remain unchanged, you benefit if the rupee appreciates in value relative to the dollar.
5. Access To The FAANG
The five stocks represented by the acronym FAANG are Facebook, Amazon, Apple, Netflix, and Google. When seeking for growth stocks to buy, investors turn to technology businesses listed on the NASDAQ. FAANG has received a lot of media attention, and investors’ portfolios are heavily weighted toward it.
FAANG’s members produce more than a considerable portion of the US Gross Domestic Product (GDP) due to their size and profitability. They currently account for more than 10% of the total value of the S&P 500 and have a market capitalization of over US$ 3.1 trillion.
Best Way To Invest In US Stocks From India
When it comes to investing in the US stocks from India, there are various options available.
You can invest through:
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EFTs (Exchange-Traded Funds)
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Mutual funds that either invest in US stocks or are based there
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Directly buying shares listen in the US stock exchange
Now, the easiest and best way to invest in US stocks from India is through a robust and reputed brokerage app like Stockal. Stockal provides you with easy cash management, researching tools and even curated portfolios you can select if you are not into researching tons of stocks. It’s perfect if you are just starting your investing journey.
Conclusion
The US stock market offers a wide range of prospects, and the study suggests that it is now appropriate to consider this market while diversifying your assets outside of the US.
The US is a global economic superpower, and its inventive spirit gives its investors a competitive advantage. The US market is extremely valuable due to a number of variables.
In the long run, buying US equities allows you to diversify your investments geographically and gives you access to huge corporations whose scale and size are unavailable locally.
