Do you enjoy making money from market volatility?
Do you love to make an investment in equities, bonds and other market instruments?
If yes, this article is for you. Where you can diversify your portfolio and maximise your returns. Here, I will discuss with you step by step process to invest in the US stock market by staying in India only.
But, before moving further we should know the difference.
Investing in stocks is very common among youth nowadays, it’s like if you haven’t invested in the stocks, your friends might feel you are outdated. You can say it’s trending. Either some of you, who are reading this article will be a part of it or might be in the process of getting into it. If you will see all Indian discount brokers businesses in the last two years like 2019-21, You will be surprised how many people have opened their accounts in these two years. This is almost equivalent to the number which companies got in past 6-7 years. Isn’t that amazing?
As you are now ready to enter the market then why shouldn’t try to put some of your money in the international stock market. This is how we diversify the portfolio and maximise the returns by managing the risk included.
All of you who are already in the trading must be thinking that when I am earning good profit from the Indian stock market then why should I think about investing in US stocks. The reason for investing in US stocks is below. If you see the comparison graph below (from marketscreener.com) for NASDAQ and NIFTY 50 for the last five years, you will know the difference.
It is very clearly visible how the US stocks have performed in comparison with Nifty.
Isn’t this amazing to see more than 200 % of returns as compared to the nifty with 100% only. If you could have invested in US stocks earlier then you must have 100% more return on your investment as compared to the Indian stock market. Don’t be sad now, you can take the benefit now if you haven’t taken it earlier. This is not a one-time deal; it’s a long journey where you will get multiple opportunities to earn from the market.
To invest in NASDAQ listed stocks, you don’t need to travel to the USA. Investing in US stocks is very easy. What you need to do is just open an account with any broker to buy or sell the stocks. This is similar to your domestic trading account in India. Everything will be done under this one account. You can even buy a stock of any price subject to the price of one stock.
You must be thinking, Is that so simple? There are many other questions also in our mind like
Where I can buy US stocks in India?
How to get profit transferred to an Indian Account?
As I said, It is a very simple process and it won’t need any extra document apart from your PAN card and Identity proof to process your request. But still, there are a few points to note down. So, here in this article, I will tell you to step by step process to make your foreign stock investment.
Step 1:
First, you need to open an account in a stockbroking firm to make a trade like buying or selling any stock on the US stock exchange.
If you are having any trading or Demat account with any Indian stockbroking firm like Zerodha, Upstox, Motilal Oswal, Angel broking etc, you can contact them directly, as most of the broking firm are now offering international investing opportunities for their customers in collaboration with the third-party broker from the USA.
Step 2:
After opening an account you need to transfer the amount from the Indian Bank account to the trading account of the firm. Keep noted that charges are high for this transaction as compared to domestic transfer.
This is because you are about to buy from the US stock market and you can buy those shares in dollars only. So, you need to convert the rupee to the dollar. While you are transferring money from an Indian bank to a US trading account. You are actually buying the dollar and sending it to the USA. It includes both transactions as well as conversion charges. The limit of transferring the dollar to the USA is capped at 2,50,000 USD per annum as per Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI).
The amount will not reflect in your account immediately, it will take 3-4 days to show up in your account from where you can buy the shares. So plan accordingly, it is not like the Indian brokers where you can transfer funds immediately and buy a share in a few minutes of transfer.
Step 3:
Now, you have a balance in your account. You can proceed with buying. This process is also very simple like the domestic market. Search the company, whose share you want to buy. Enter the number of quantities of shares. The amount corresponding to the quantities will be displayed at the bottom with service charges also. Make sure that you have enough amount to buy those shares. If you have that much amount in your account you can proceed with the buying and the number of shares will be credited to your account.
In the same way when you want to sell the share, just follow a similar process like clicking on the sell and following the subsequent steps. The amount will be credited to your account.
Keep note, this is only an investment platform not for trading. Frequently buying and selling is not allowed and it can restrict your account. So, think before investing which stock you wanted to hold for a period of time. There is minimum or maximum time for which you can hold the stock but it is advised that you should not do it frequently or in a day itself. As I said the whole process takes time for money transfer like for depositing as well as withdrawing. Keeping all things in mind invest accordingly.
For personal help related to investment in US stocks or Indian stocks also, you can book meeting online for personal advisor service. We will guide you step by step process of investing and where you should invest to make tremendous returns, without investing much time. As we are investing our time for you in researching and making this process of investing easy for you.
In other articles, I will tell you about the other aspects of investing in US stocks. Keep reading and sharing.
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Disclaimer: Market investments are subjected to market risk. Invest wisely or in consultation with any financial advisor.
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