Indian investors typically focus on domestic stocks, either directly through the stock market or indirectly through mutual funds. However, many wish to invest in US giants like Google, Tesla, NVIDIA, or Meta.
At the ‘Mint Horizons’ event in October, several experts noted that investors miss out on major potential gains by restricting investments to India alone. Let’s explore the various ways to invest in American stocks.
Invest in US stocks
There are a few ways to get exposure to companies like Alphabet and Amazon:
I. Domestic brokers with access to US markets: You can open an account with a platform partnered with US brokers. This is a convenient way to buy US stocks. However, it often involves high currency conversion fees (INR to USD).
II. Foreign brokers: You can invest directly via international platforms that accept Indian investors. This suits investors with deep pockets, as the minimum investment is usually high. Examples include TD Ameritrade and Interactive Brokers.
III. GIFT City platforms: Another route is through GIFT (Gujarat International Financial Services) brokers offering US access. This option is gradually gaining popularity among retail investors. For example, Marcellus Investment Managers recently launched a NASDAQ ETF in GIFT City to meet this growing demand.
IV. Mutual Funds: A popular and accessible option is to invest in Indian mutual funds (ETFs or Fund of Funds) that invest in US stocks or indices like NASDAQ or S&P 500.
Rishabh Lodaya, Vice President, Wealth Management at 1 Finance says, “Today, international investing isn’t a privilege – it’s an option available at the fingertips of every Indian investor who wants to participate in global growth. Best way to access international markets, would be through international mutual funds managed by Indian AMCs, followed by direct stocks or ETF investment under LRS or through managed portfolios.”
Examples of Indian US-Focused Funds:
Motilal Oswal Nasdaq 100 ETF; Aditya Birla Sun Life NASDAQ 100 FOF; Axis NASDAQ 100 FoF; Edelweiss US Technology Equity FoF; Mirae Asset S&P 500 Top 50 ETF FoF and Kotak Nasdaq 100 FOF.
Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment-related decision.
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