How To Invest In Foreign Stocks from India? (2024)
We have the option to invest in funds of funds (FoF) mutual funds to enter the foreign stock market; however, mutual funds do not suit all investors. Besides, if you are unsure of direct investments in a foreign market but don’t want to invest in mutual funds, we are left with only one option; Exchange Traded Funds (ETF’s). The ETFs are slightly different than Mutual funds, and one of the biggest differences is when you can buy/sell them. Mutual funds can only be traded (buy/sell) when the market closes, while the ETFs can be traded at any time of the day. You don’t need to specifically have a trading account with international brokers. You can invest in ETFs both through local brokerage and international brokers, and it is as easy as investing in mutual funds. There is a certain caution that one needs to take when investing in EFTs; these funds need to be registered by SEBI (Security Exchange Board of India). There are a lot of scamious people who want you to invest in ETFs, and it is better to be cautious. Speaking of advantages, ETFs are a great investment as they reduce the training risk as simply replicates the movement of the index. Another advantage of investing in ETFs is the expense ratio is significantly lesser than the mutual funds.
Investing in foreign stocks is not complicated, and they make a great investment too. Besides, there are certain brokerage apps that allow you to directly invest in foreign money within minutes. So, this is going to be an easy process. There are two other ways to invest in foreign stocks, either you go with the Indian fund houses associated with the foreign stocks and Exchange Trade Funds.
Indians can invest in US stocks through mutual funds, ETFs, and direct or indirect methods. There are options like global trading accounts with domestic agents or overseas trading accounts with foreign brokers. NSE IFSC Exchange now offers US stock trading.
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. Ensure that you understand the fees and charges before opening the account.
No, presently investing in stocks listed in foreign stock exchanges is not possible through Zerodha. If you wish to invest in US stocks such as Apple, Google, Facebook, Amazon etc or just have some exposure to global markets then, international mutual funds is the easiest way.
You can buy US stocks and ETFs from India directly through INDmoney. If you find some US stocks expensive, you can take advantage of fractional trading and start your US investment journey for as little as $1. INDmoney makes it easy for you to invest in US stocks by categorizing them as hot, tech, pharma, etc.
To do so, NRIs need to open a Non-Resident External (NRE) account under the Portfolio Investment NRI Scheme (PINS) or use their Non-Resident Ordinary (NRO) account for routing their investments.
Introduction: My name is Kimberely Baumbach CPA, I am a gorgeous, bright, charming, encouraging, zealous, lively, good person who loves writing and wants to share my knowledge and understanding with you.
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