Uploaded on Jun 24, 2021
PPT on Ways to invest in US Stock Market.
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
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