These days, several
Indian investors are keen to invest in the US Stock Market, which is the largest stock market in the world. US stock investment gives you
access to global companies, diversifies your portfolio, and gives better
Imagine owning a
stake in the shares of multinational giants like Facebook, Microsoft, Google,
Tesla, Apple, and Nike! You can invest in the stocks listed on US stock market
indices such as Nasdaq 100, Dow 30, and S&P 500.
There are two ways
to invest in the US share market - Direct Investment and Indirect Investment. Let’s
understand in detail.
You can invest
directly in the US stock market by opening an overseas trading account with an
Indian or foreign stock broker. The Indian brokers have tie-ups with US brokers
and act as an intermediary. If you don’t want an Indian intermediary, then you
can look for a foreign broker who has a presence in India.
The charges and terms
and conditions may vary across domestic and foreign brokers. You have to
fulfil KYC formalities and fill out the forms mandatory as per the Reserve
Bank of India’s (RBI) foreign trading rules. RBI allows Indian residents to
remit up to $2,50,000 annually per person under the Liberalised Remittance
Scheme (LRS). Hence, it is advisable to check for all details and do thorough
research before opening an overseas trading account.
You can make an indirect
investment through US-focused mutual funds or Exchange Traded Funds (ETFs). You
do not need to open an overseas trading account.
funds are primarily Funds of Funds (FoFs) that invest in international mutual
funds. There are also local mutual funds that invest in global stocks. You can
reach out to a mutual fund advisor to get more details.
You can also
consider directly buying an Indian ETF with US stock indices. Another way is to
buy US ETFs directly through an Indian or foreign broker.
However, do keep in
mind RBI’s regulatory framework while investing in US mutual funds or ETFs.
According to the RBI mandate, Indian mutual funds registered with SEBI can invest
overseas with up to $7 billion while the upper limit for ETFs is $1 billion.
These days, there
are also several trading mobile apps that allow you to invest in the US stock market at the tip of your
fingers. However, make sure that these apps are registered with the Securities
and Exchange Board of India (SEBI), or else you might become a victim of
The US stock market
is a rewarding opportunity for investors who want to look beyond their Indian
investment portfolio. However, foreign markets are vulnerable to
socio-economic-political dynamics and currency fluctuation risks. You need to
do an elaborate risk analysis before you invest in the US stock market. You
must also understand RBI and SEBI rules and regulations regarding foreign
Hence, it is
advisable that you invest in the US stock market through a reliable and
experienced stock broking agency such as Ajmera x-change. With
its research-focused and customer-centric approach, Ajmera x-change can bring
you a solid value proposition for your US stock investments. Get in touch to know