How To Invest in US stocks?
Investing shouldn’t be restricted to a single nation, especially with the rise of the digital economy and the world’s transformation into a global community. Investing has, thankfully, become more universal. Nowadays, it’s no longer a big deal to invest while seated in India. Indian investors can invest in a number of valuable and well-known corporations by purchasing international equities.
Indian citizens are allowed to invest in foreign companies, and they can allocate a decent amount of money to do so, to diversify their portfolios. The Nasdaq Composite Index, S&P 500 Index, Russell 2000 Index, and Nasdaq-100 Index are some of the most renowned and respectable foreign corporations that are represented in the US stock market indices, and also the best investment options for Indians in US markets.
- The Dow gauges the value of thirty sizable corporations, many of which are well-known blue-chip companies and among the best investment options for Indians in US markets.
- The S&P 500 seeks to be more inclusive in order to include more businesses from different industries and sectors.
- Additionally, giant tech companies trading on the Nasdaq exchange are included in the Nasdaq composite.
Read further to understand in detail how to invest in US stocks.
Why Invest in the US Stock Market?
While you figure out how to invest in US stocks, you also need to be aware of the most important arguments for diversifying your investments, such as:
- The Ever-Growing Dollar Index / USD, Especially in a Rising Interest Rate Environment
In the past, the rupee has lost 2–3% of its value against the dollar annually. Therefore, purchasing a foreign asset might act as a natural hedge versus rupee depreciation and market volatility worldwide.
- Center of the World in Terms of Innovation-Related Themes like AI, IoT, ML, EV, Cloud, etc.
The US is home to AI, Cloud, IoT, and more innovations. You no longer have simply domestic investment options available to you. You can take advantage of the profits from a number of tools that might not be accessible in India. The majority of the world’s tech behemoths – the best investment options for Indians in US markets – are based in the US.
- Geographical Diversification
At specific points in time, markets perform differently all around the world. Therefore, as an investor, you enable your money to produce superior risk-adjusted returns if you have a diverse portfolio spread across many geographies.
When you research “how to invest in US stocks” and understand geographical diversification, you will see that international investments present numerous brand-new prospects. Without limiting themselves to what is accessible in India, investors with a taste for unique investments can use geographic diversity to participate in various market segments they believe will generate more future value.
- Access to Global Companies and Fractional Shares
You will have access to the best investment options for Indians in US markets such as Amazon, Tesla, and Apple – and that too by buying fractional shares. You hold a fractional share of a corporation if you don’t own a full share. You can invest in stocks using fractional shares depending on the dollar amount, and as a result, you might acquire a portion of one share, a full share, or perhaps more than a share.
How to Invest in the US Stock Market?
- Direct Investment via New Age Platform Apps
Digital platforms can be used to make investments in markets throughout the world. You can try using applications that provide access to international equities for simple investments. Alternatively, you might try Indian brokerages; most of them currently offer access to the major international markets. You can also create an account with a foreign broker who offers services for Indian traders. Due to your direct access, you can invest directly in equities, ETFs, and active funds in various markets that you think have promise for the future.
New-age platform apps such as Stockal come with varied offerings, including stacks and ETFs. Stockal is the best app to trade in US stocks from India. The app offers a fast account opening process and has no minimum account balance limitations. You can purchase fractional shares on this secure platform and obtain excellent research and analysis. Additionally, Stockal will instantly provide you with information on all of your assets.
- Investment via NSE IFSC
Only the NSE IFSC is a wholly owned subsidiary of the National Stock Exchange. This NSE subsidiary operates global stock exchanges located in GIFT City, Gandhinagar, making it simple for NRIs and overseas investors to trade in Indian equities. For regular Indian investors, the NSE IFSC Foreign stocks exchange has suddenly emerged as a viable option.
All transactions on the NSE IFSC exchange are made in foreign currency, particularly US dollars. The Liberalized Remittance Scheme, or LRS, would then be used for your transactions in NSE IFSC US stocks, just like it is for foreign exchange investments done outside of India.
- Direct Investment via International Brokers
Indians can also create accounts with overseas brokerage houses and invest in foreign stocks. These companies also offer them research and analytical support to assist their clients in making financial decisions.
- Indirect Exposure via MF
One could invest in the global markets by purchasing international mutual fund schemes that invest in foreign funds with exposure to foreign markets. The investment amount is relatively small, and no foreign trading account is required.
Things to Keep in Mind:
When you are doing your research on how to invest in US stocks, it is advised to consider the following elements:
- Fees: Trading expenses for a specific stock transaction might vary by up to 50x between different online brokers.
- User-friendly Interface: The mobile trading system should include an intuitive user interface, effective chatbots, a contemporary and updated design, price notifications, and two-step logins in order to be user-friendly. The platform is simpler to use when it has a well-organized interface.
- Variety of Investment Products: All ETFs, derivatives, bonds, options, stocks, and other financial products in which investors invest money with the hope of making a profit are referred to as “investment products.” The finest broker for Indian investors would offer a wide variety of investment options. Exchange-traded funds have lower expense ratios as compared to mutual funds since they are passively managed. One example is the Global X NASDAQ 100 Covered Call ETF from Stockal.
- Research: Trading strategies that include technical analysis can help traders make logical decisions. Buy and sell indications can be found in a technical analysis, which can aid in spotting fresh trading chances. Analysts employ various indicators and toolkits to analyze the stock market. These instruments, which mainly comprise market indicators, should be used by the top broker for US stocks in India to forecast price movements for all significant financial indexes.
- Customer Service: The finest broker or the best investment options for Indians in US markets for US equities in India ought to be able to put together an effective customer service that is available around the clock. Regardless of how fantastic the service is and how knowledgeable a company’s staff is, customers will be more likely to remember their direct relationship with a company.
How Does Stockal Make Everything Hassle-Free?
- Curated Portfolio Stacks
Ensuring a portfolio that would be both lucrative and diverse requires a lot of effort and investigation. Stockal uses Stacks to take proper care of this and helps you find the best investment options for Indians in US markets. With just one click, you may invest in US equities from India with Stacks, which are expertly built portfolios. They are made up of pre-assembled baskets of stocks, exchange-traded funds, and other securities. To help users better understand investing, Stockal also provides research tools like Tipranks.
- Thematic ETFs
Using an ETF referred to as a thematic ETF, investors who purchase US stocks from India can base their decisions on issues like climate change or AI. Businesses that should gain from this development are then included in the ETF. Thematic ETFs from Stockal include the Cosmos Thematic High Impact stack. These ETFs adhere to exclusive macro research and are based on structural growth.
- Easy Money Transfer Process and Easy to Track
When investing in US equities from India, Stockal money transfers offer immediate liquidity. The sum you can transfer or pay is not limited in any way. You can transfer funds to your friends and/or family, or pay your university’s expenses. With Stockal, you may plan more effectively as you relocate by setting a budget in US dollars so as to guard against unexpected currency fluctuations.
- Ability to Buy Fractional Shares
You will learn about companies, products, ideas, and opportunities that are occasionally accessible locally through worldwide markets. You can think about using Stockal to invest in fractional shares of firms like Netflix, Tesla, Apple, Amazon, and many others. One of the unique aspects of the US stock market is that investors can still own fractions of equity, unlike markets across the globe like India.
The Bottom Line
Certainly, the advantages of international investments tend to exceed the drawbacks. In addition, the US is one of the finest places to invest, particularly for Indians, given that it is among the most powerful nations and host to the most prominent IT companies with international operations. They have a close bond and have always been each other’s allies.
