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Here’s why you may want to consider investing in US stocks

Here’s why you may want to consider investing in US stocks
Stock Market3 min read
  • Investing in US stocks from India is now easier than ever before.
  • There are various options available for Indian investors to participate in US equity markets and enjoy the returns from the growth of companies like Apple, Google, Tesla, among others.
  • But why should you invest in US stocks? Read on to find out.
Investing in US stocks from India and being able to participate in the action in the US equity markets is now easier than ever before, thanks to a range of options available for investing. From NSE IFSC to brokerages like Vested, INDmoney, among others, investors and traders alike have enough options to invest in the US stock markets.

Recently, NSE IFSC has started offering access to some of the best US-based companies like Apple, Google, Tesla and others, to investors in India. But before you explore the options available, it is worth understanding why you should consider investing in US stocks.


Why should you invest in US stocks?

Benefiting from the US growth story

The US stock exchanges have many of the biggest blue chip companies on their bourses, giving investors access to trillion-dollar giants like Apple, Google, Microsoft, Tesla among others. While India has its own blue-chip stocks like Reliance, TCS, Infosys among others, the sheer size of the US companies makes them a much more interesting alternative.

The US markets are also much bigger when compared to the benchmark Sensex and Nifty50 indices.

Apart from companies like Tesla, Google and Apple which are technologically much superior than most other companies in the world in their respective industries, US stock exchanges also have companies from China, Japan and European companies that you can look at.

It's good to have diversification in the countries that we invest in too.Like I have been investing in US markets from last few years. It's a bigger market and there is no issue of liquidity.We can have best of both worlds and if someone is busy during day time with their jobs, they can trade at evening time when the US markets are open according to the Indian Standard Time.Having exposure in world class companies like Apple, Tesla, Google etc is indeed great.

— (@TraderHarneet) April 06, 2022]]>

Geographical diversification

One of the things often talked about when it comes to investing is diversification. While usually it refers to allocating your capital across various asset classes, geographical diversification is also an aspect that is worth considering.

While it is possible to adequately diversify an investment portfolio within the asset classes available in India, geographical diversification mitigates the risks that the Indian market on its own carries.

Gaining from US dollar appreciation

The US dollar is the world’s reserve currency and until that is the case, it will have a major advantage over most other currencies in the world.

With the Indian rupee declining in comparison to the US dollar, it is prudent to consider ploughing in some money in the US markets to safeguard your capital against Indian rupee’s decline.

Invest in fractions

Another interesting aspect about investing in US stocks is that you can buy fractional shares. This is critical because, for instance, a single share of a company like Google costs $2,731 (approx. ₹2.07 lakh). Without the ability to buy in fractions, investing in US stocks might be off the limits for a huge portion of investors.

You can invest ₹5,000-10,000 or any other amount you can afford and slowly build your portfolio over time, gaining from the stock appreciation of these US companies.

Disclaimer: This is not investment advice.

SEE ALSO:

Things you need to keep in mind while investing in US stocks

Buy and sell Tesla, Apple, Netflix, Amazon and four other US stocks in India via NSE IFSC – here’s how

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