Start Investment in US stock Market fro india | How to Invest in USA Stock Market from India?

Why should invest- In USA Stock Market from India

• By investing in the global market where you can diversify your portfolio. At the same time, the risk can be reduced through diversification.

• Investing in global stocks also helps you take advantage of the rupee depreciation. The rupee has depreciated at an average rate of 6 percent every year in the last 35 years. It can be understood in this way that in September 2004, the price of 100 dollars was about 4600 rupees. At the same time, today the price of 100 dollars has become about 7500 rupees. Then the price of one dollar was about 46 rupees. Today it has increased to more than Rs 75.

• Thirdly, the benefit of growth in global stocks is available. Like Google's IPO came in 2004. The company's IPO price was $85. Now Google's stock is at $ 1772. That is, if someone had invested money then, his money would have been 21 times as on today's date.

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Diversification - One reason is diversification, you can diversify your portfolio by investing in foreign markets. Diversification helps in reducing the risks associated with stocks. Understand this with an example- suppose the Indian stock market is going down due to some domestic reasons and you are not able to earn money if you have invested in foreign stock markets then you can reduce your risk. Because Indian market conditions do not affect the international market, most investors invest in foreign markets for good prospects, they think global companies are better in terms of resources, parameters, and government support.

what to do invest in us stock market?

To invest in any company in the US market, one has to open a Demat and trading account with brokers registered with the US regulatory Securities Exchange Commission (SEC). It is similar to the Demat account opened in India. Through this account, you will be able to make payment and take your shares in Demat. But before opening this trading and Demat account, there is Know Your Client (KYC) of the investor. This process is also similar to KYC in India. Payment is done in dollars Under the Liberalized Remittance Scheme of RBI, any Indian can take dollars up to Rs 2.5 lakh. Upon receipt of the dollar, it will have to be transferred to the trading account of the US broker. After this, you can buy the shares of your choice. If you want to bring this money back to India, you will have to sell the shares and take payment in dollars. After that, it can be transferred to the bank. When you convert rupees to dollars or dollars to rupees, you will get money according to the exchange rate at that time.

Investing in global companies is another reason why people prefer to invest in companies of their choice like Apple, Google, Facebook, Twitter, Amazon, etc. These companies are global and they do good work, which has the potential to earn more money. Big Opportunities You get good opportunities in the foreign stock markets, especially in the USA. Once you start investing outside, there are no barriers left, it increases the chances of increasing profits. There are two ways to invest in the foreign stock market. 1. Open a Trading Account with an Indian Broker Here are some Indian Brokers like ICICI Direct, Kotak Securities, India Infoline, Reliance Money, and Religare. They have agreements with foreign brokers, these foreign brokers trade for you in the foreign market. For this, the following procedure has to be followed- Open a trading account with a brokerage house This is also called an overseas trading account Submit KYC documents which include a PAN card and proof of residence like a Voter ID card or latest bank statement. Once your account is opened, you will have to put funds in it. As per the remittance rules, an Indian citizen can remit only up to $250,000. To receive funds in foreign currency, you need to submit Form A2. Form A2 is used for foreign exchange withdrawals and declarations in FEMA. This form will be available with your brokerage house. Once the funds are transferred, you can trade on the online platform. If you buy a stock, it will be credited to your Demat account in T+2 days. During this period it will remain in your pool of foreign brokers. Remember that you cannot do margin trending and short selling with a foreign broker. You can buy shares only if you have enough funds. You will receive a contract note for each executed trade in your inbox. 2. Open a Trading Account with a Foreign Broker Investing in the USA Market In this second method you have to enter through a foreign broker. Such foreign brokers that allow Indian citizens to invest are called interactive brokers TD Ameritrade, Charles Schwab International Account, etc. The process to invest through all foreign brokers is almost the same though broker charges may vary. Things to keep in mind before starting trading in the US stock market An Indian citizen can invest a total of up to $250,000 outside India in a financial year. This limit is as per the Liberalized Remittance System (LRS). Therefore, the maximum investment limit amount per person per year is $250000 i.e. approximately Rs.1.7 crore. Whenever you invest in a foreign market, you will have to pay high conversion and brokerage charges. Brokerage is usually paid in US Dollars. When you invest in the US market, the exchange rate plays a very important role, any fluctuation in the dollar rate has a direct impact on profits. You need to be more careful when you invest in foreign stocks. You may not be aware of global issues and economic conditions that directly or indirectly affect the performance of foreign companies and stocks. Conclusion: You can invest in the US market from India and become a part of the global economy However, India is the fastest-growing economy of the world. Whereas all other international markets are good. Investing in the overseas market can provide you a great opportunity to invest in global companies with good prospects and diversification but it will come with additional cost of foreign exchange, higher ownership cost and uncertainty of global risk.