Indian investors are increasingly investing in US stocks, recognizing the opportunity in geographic diversification. The lure of investing in new technology companies like Tesla, Netflix, Apple and Amazon has been a catalyst for investors over the past year. Anupam Guha, Head of Private Wealth, ICICI Securities; Sandeep Bhardwaj, CEO, Retail Brokerage, IIFL Securities; and Vinay Bharatwaj, Co-Founder and Co-CEO of Stockal tell Shalin Agrawal It’s all about virtually unlimited investment. The team not only explores why and how to invest abroad, but also discusses stocks or sectors to invest; tax implications of investing abroad; portfolio allocation; risk factors; Return expectations, exit options, and more.
Watch: Virtually Unlimited Investing – Investing in US and Foreign Stocks from India
“Clients are fascinated by investing in unlisted stocks in India,” said Sandeep Bhardwaj, CEO of retail brokerage, IIFL Securities. He added that companies such as Facebook, Microsoft, Nike, Starbucks, and Netflix are popular and offer products and services that are used daily around the world, enticing people to participate in their growth journey.
Lots of options to invest in
Brokerage firms and other platforms in India are now beginning to offer investors an opportunity to invest not only in US stocks but also in ETFs, managed funds, and even bonds. The diversified US stock market offers investors the opportunity to invest in different assets ranging from factor funds, active funds, ESG funds, and even units of a specific stock. In terms of what investors are currently investing in, Sandeep Bhardwaj said he sees good traction in the FAANG story, which is a more popular stock topic for anyone starting to invest in the US.
How much to allocate?
Talking about how investors are allocating their money to global investment, Anupam Guha, Head of Private Wealth, ICICI Securities, advised investors to start with around 5-15%. “Every client has to see how willing they are to take a risk and invest. From a diversified perspective, it makes sense and from a trend perspective, 5-15% is allocated and that is pretty much the trend.”
Account opening made easy
Opening an account that allows you to trade in the US stock market has become democratized through various platforms recently. “We have made the (account opening) process as easy and simple as possible. Since the launch, today a client can open an account in 3 minutes and the account is activated instantly,” said Vinay Bharatwaj, Co-founder and Co-CEO of Stockal.