Invest in US Stocks: Due to the Corona epidemic, the domestic market had collapsed in March 2020 last year, but since then it has gained tremendous momentum. In March 2020, Nifty had gone down to the level of 7511 which is now close to the level of 16 thousand. In about 14-15 months, both Nifty50 and BSE Sensex have gained up to 40 percent so far and some stocks have also given tremendous profits to investors. Although there is risk associated with investing in equities, there is also a risk that is not discussed now, geographic risk.
Investors should not ignore geographic risk. If all the stocks included in an investor’s portfolio are from the Indian market, there is a geographic risk associated with the return. In such a situation, it is important to diversify your portfolio geographically and invest in stocks from countries other than India. In such a situation, American stocks emerge as the best option.
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Trading can start in 72 hours
The way stocks like Reliance and Zomato are bought in India, in the same way, stocks of Tesla, Amazon or Facebook can also be bought in America. For this, there is a need for a brokerage platform that can help in placing buy and sell orders of stocks on US stock exchanges. Giving this information, Sandeep Bhardwaj, CEO (Retail), IIFL Securities said that opening a US trading account in India is very easy. Brokers who provide investment facility globally on their platform can complete digital KYC in just half an hour through ID proof and address proof on their platform. The US broker associate of the broker will then approve the account within 48 hours. Apart from this, it takes 2-3 working days to send money from Indian bank to foreign bank. After that you can start trading. According to Bhardwaj, this entire process is completed in 48-72 hours after which trading can be started.
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Start by Investing in These American Stocks
Investors who are still looking to invest their capital in India can see that US stocks have outperformed over the past few years. Indian investors have got access to high growth new tech stocks like Amazon, Teslas Netflix and their capital has increased rapidly which Indian investors do not get by investing in any other option. Apart from this, investing in American stocks also helps in diversifying the equity portfolio. According to Bhardwaj, keeping in mind the value of rupee against the US dollar, investing in American stocks can give great returns in the long run.
According to Bhardwaj, initially one can start by investing in stocks like Facebook, Apple, Amazon Netflix and Google which have global presence. After this one can start investing in US ETFs and include other mid and small cap stocks in your portfolio.
(Article: Sunil Dhawan)