Hello StartupCrow readers, In this article, we will discuss How To Invest In US Stocks From India
Everyone wants to invest in the US Stock Market and especially Indian. Almost all the big companies of the world are of US, even around 1 trillion market valuation club Apple, Microsoft, Amazon & Google are also US-based companies. In fact, in a few changes in these companies with more valuation, we get very good profit.
Let us tell you that most Indians are mostly Indians in US companies. Like- Google’s CEO beautiful Pichy, Microsoft’s CEO Satya Nadela, CEO of Adobe Shantanu Narayan.
How To Invest In US Stocks From India
The US stock market is managed by the world’s two largest stock exchanges, New York Stock Exchange and Nasdaq Stock Exchange. It becomes easy to buy and sell shares of companies like Amazon, Apple, Google with these exchanges.
Based on the amount of purchase and sales, there is a daily fluctuation in the total value of the American equity market. According to the Intercontinental Exchange, who had bought the New York Stock Exchange in 2013, on January 31, 2018, the total value of the US stock market in the New York Stock Exchange was more than $ 30 trillion.
Since there are various types of companies from various types of industries listed in the US Stock Market, so stock exchanges have created various US stock index for the help of economists, fund managers, journalists, traders and others.
Three US stock indexes are most important and most followed. Each of them has a specific objective:
- S & P 500: This index measures the value of 500 largest companies listed in the New York Stock Exchange of Famous Wall Street and it is considered to be the best representative of the US stock market.
- Nasdaq 100: This index measures the value of 100 largest companies listed in the Nasdaq Stock Exchange. While this index includes companies of various types of industries (mainly technology companies), but financial companies such as banks are not included. Nasdaq 100 index is considered to be the best representative of the American Technology.
- Dow Jones 30: The purpose of 30 shares that make index is to reflect the major areas which run the US economy. For this reason, many companies of different industries are included. In 2019, Dow Jones included some of the 30 companies in American Express, Appal, Boeing, Coca-Cola, Disney, Goldman Sachs, McDonald’s, Microsoft, Nike and Verizon.
What can be the benefits of investment in US stock market?
- Investors always want to keep different sectors and different types of stocks in their portfolio to reduce risk. With this view, investing in any external market opened new options. Companies of many other countries also list themselves in the US market.
- In the last few years, less volatility has been seen compared to the Indian market in the US market. Even in the case of returns, the US market has been better than the Indian market. Investors can also benefit from being weak compared to the dollar.
- Due to the startup hub, there is a chance to invest in good capacity companies in the US. Similarly, there are subsidiary list of many big companies in India or other markets, whereas directly in the US market can easily invest in such companies.
Investment in US Stock Market from India
- From Foreign Brokerage FIRM Tie-up opening the trading account in FIRM.
- Offering trading account in Direct Foreign Brokerage firm.
Indian Brokerage FIRM by Opening Trading Account
Any Indian who wants to invest in the US Stock Market from india, they can invest with the Tie-up with Foreign Brokerage FIRM by opening his trading account in Indian Brokerage firm. Such a trading account is called an overseas account. Brokerage firms of Foreign Tie-up in India are many, such as ICICI Direct, HDFC Securities, Kotak Securities, Reliance Money.
Steps to Open an Overseas Account for Invest in Us Stock from India
- First of all you will have to open the trading account in the broker firm with FFOREIGN TIEP.
- KYC will be required to submit all the documents.
- After the account open, you will have to transfer funds and then fill the A2 Form. Through A2 Form you will be ableive Foreign Exchange to receive in your account. These Form provides you brokerage firm itself.
- Only after the fund transfer you can trading on the online platform. Earlier, you meet Contract Notes for Executive Trade, which is sent to your inbox.
After this you will be able to buy shares of Foreign Companies. The main thing is that you can not sell Margin Trading and Short selling on Foreign Exchange, because these both are not allowed for Indian Investors.
Opening Trading Account in Foreign Brokerage Firm
You can invest or trading in US Stock by opening account in Direct Foreign Brokerage. Many of the Foreign Brokerage Firm-Interactive Brokers, TD Ameritrade, Charles Schwab gives permission to open the trading account for Internet ETC Indians.
At present, any Indian US stock market can invest $ 2,50,000 in the Indian US stock market, and this is the Maximum Price of LRS (LIBERALIZED REMITTANCE SCHEME).
Is investing in US stocks from India legal?
Yes – investors from India can invest in the US stock market. … Investing in US stocks or ETFs by Indian investors is permissible under the RBI’s Liberalized Remittance Scheme (LRS), by using purpose code S0001
How can I buy US company shares in India?
1. An account with Indian Brokers having a tie-up with a foreign broker.
2. Open an account with the foreign brokers.
3. Investing in Foreign stocks through new startups Apps.
4. Extra: Buying Indian MF/ETFs with global equities.