Investing in the US: 5 key things to know Here are the various ways in which they can do so and access some of the worlds leading companies
Indian investors are increasingly looking to diversify their portfolios by investing in the US stocks. Here are the various ways in which they can do so and access some of the world’s leading companies.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;} Direct investment
Many Indian brokerage firms have tie-ups with their US counterparts, allowing Indians to invest in the US stocks. They usually charge a brokerage fee and, sometimes, a currency conversion fee.
Foreign brokerage accounts
Opening an account with a US-based brokerage house is another option. These brokers offer comprehensive services and often lower transaction costs. However, the process of setting up an account can be complex, involving KYC compliance and minimum balance requirements.
Exchange-traded funds
The ETFs that invest in foreign stocks are a popular way to gain exposure to the US markets without buying individual stocks. ETFs can be bought on the Indian stock exchanges, such as the NSE or BSE, through Indian brokerage houses.
Mutual funds
Several Indian mutual fund schemes invest in the US stocks. They offer an easy way to diversify internationally. Investors can purchase these funds through any investment broker platform or directly from the mutual fund house.
Global investment apps
Many investment apps have simplified the process of investing in the US stocks. These offer user-friendly interfaces and educational resources for investors.
Points to note
As per the RBI norms, individuals can remit up to $2,50,000 per financial year for investment.Earnings from the US stocks are subject to both the US and Indian taxes. Capital gains tax applies according to the holding period and applicable tax laws in India.Content courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
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This story originally appeared on: India Times - Author:Faqs of Insurances
