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How can you invest in the US stock market from India?

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How can you invest in the US stock market from India?

Before understanding the method of investing in the US stock market from India we must study the difference between the major stock market indices. The Dow Jones Industrial Average (DJIA) is the stock market index of the US stock market, while the BSE Sensex is one of the stock market indices in the Indian stock market.

When investing in the US stock market, it is important to keep an eye on the DJIA. Understanding the differences between investing in the two markets opens up a lot more opportunities for you to allocate your funds.

You do not have to be in the US to put your funds in the US stock market. You can easily do so while sitting in India. Let us see how to invest in US stocks from India.

The process of investing in the US stock market from India is simple and straightforward. There are two-three approaches one may take for this. The foremost and simplest approach is to simply open a Demat and trading account with an Indian broker who offers this facility to make investments in international stock markets. Once your account is up and running, you can start buying and selling stocks listed on the NYSE and NASDAQ exchanges.

Most brokers will charge a nominal fee for each trade that you make. You can also find brokers that offer flat-fee trading plans, which can help you save money if you plan on making a lot of trades.

Another approach is to open an account with a foreign brokerage directly. You may want to compare costs before you do this.

A possibly pocket-friendly approach is to invest in ‘Fund of Funds’ that operate from India. Fund of funds are basically mutual funds belonging to an asset management company (let’s say Indian company A) that invests in funds of foreign asset management companies operating abroad. There are also direct options available now in the mutual fund space where Indian funds offer global stock exposure.

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Now to answer the question:

How much can an Indian invest in US stocks?

We look at the RBI guidelines. Under the Liberalised Revenue Scheme (LRS), the RBI has given the permission to Indian investors to invest upto $2,50,000 (approximately Rs. 1.9 crores) each year in the US stock market. This can be done without taking any special permission from the governing body.

If you are choosing to invest in the US, a crucial thing, which may seem very basic but is extremely vital, is that when investing in direct US stocks from India, you must take into account the time difference between the two countries. The US stock market is open from 9:30 am to 4:00 pm EST, which is 7:00 pm to 1:30 am IST. This means that you will need to be available during those hours to trade.

This is how to invest in US stocks from India. While you may wish to invest in the US stock exchange while sitting in India, in an attempt to maximise your return on investment, it is also important to evaluate this decision carefully.

Steps to invest with Teji Mandi

Step 1

Choose

Choose a suitable portfolio that matches your investment objective

Step 2

Subscribe

Subscribe to the portfolio & get access to the constituent stocks & weights.

Step 3

Invest

Invest in the portfolio & apply regular portfolio updates. Set up SIP for disciplined investing.

01 Choose
Choose a suitable portfolio that matches your investment objective
02 Subscribe
Subscribe to the portfolio & get access to the constituent stocks & weights.
03 Invest
Invest in the portfolio & apply regular portfolio updates. Set up SIP for disciplined investing.

FAQs

  • How to start investing in the us stock market from India?
    The process of investing in the US stock market from India is simple and straightforward. Simply open a Demat and trading account with an Indian broker who offers this facility to make investments in international stock markets. Once your account is up and running, you can start buying and selling stocks listed on the NYSE and NASDAQ exchanges.
  • Can Indians invest directly in US stocks?
    Yes, but of-course when you invest in the US stock market, you will be dealing in terms of US dollars (USD). The process of investing in the US stock market from India is simple and straightforward. Simply open a Demat and trading account with an Indian broker who offers this facility to make investments in international stock markets. Once your account is up and running, you can start buying and selling stocks listed on the NYSE and NASDAQ exchanges.
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