How to Invest in International Stocks from India?:
So, there are many and different varieties of the assets available in the Indian stock market for the investors or the traders to trade or to make the money out of it.
But you also know that there are many great brands that are also listed in the stock market but not in the Indian stock market.
So, there are many investors or the traders that want to get the ownership of those great brands also.
By buying their shares they become the shareholder and gets the part of the ownership.
So, you can also invest in the international stock market from India only.
Let’s begin with the article on “How to Invest in International Stocks from India?”
Further moving ahead let makes something very much clear which will work for you.
Investing in the foreign stock market is not similar to make the investing in the Indian stock market as such regarding the amount of investing.
Let see how much can the Indian investors invest in the international markets:
How much can Indian Investors Buy Foreign Stocks?
The Reserve Bank of India (RBI) gives the permission to use only US $250,000 per financial year by the individual Indian citizen.
Using the current exchange rate.
With the conversion of these dollars into INR rupees, this can be an investment of crores.
As the charges also increased with converting the INR into dollars.
If you have 3 members in the family then you can invest $250,000 X 3 as considering each family member as the separate member of the house.
Sometimes, this might also be the case that when you invested in the international markets the exchange was different and when you book the profits and again convert it into the domestic currency the rate might get changed.
This can be sometimes profitable or loss deal for you.
As this contains the currency fluctuation risk with it.
As there is an old saying, “If you want to get something you need to lose something on the other hand.”
Now that got to know about the investment amount and the risk associated with this so let’s jump on the topic on how to invest in international markets.
How to Invest in International Stock from India?
Option: 1 Invest in International Stocks
Option: 1 To open the account from the Indian Firms that have the Tie-ups from Foreign Markets
- You can open the trading account.
- Search for that broker that gives you the facility to invest in the international stock market also.
- There are a few famous identities of the brokerage firms that provide the service of international investing in the stock market.
- They are ICICI Direct, HDFC Securities, Reliance Money, etc.
- With the help of these brokerage houses, they had made it simple for everyone to open the overseas trading account with the foreign broker.
- You need to submit your separate account opening form in time with the Know Your Customer (KYC) documents.
- After that, you need to transfer the amount to the overseas partner of that domestic equity broker from which the services has been rendered.
- For submitting the funds the process is:
- Submit the application or the declaration form under LRS.
- Form A2- this form is available to the broker.
- Sign the form for Foreign Exchange Management Act (FEMA) declaration.
- From getting the authorization of the designated bank branch as the authorized dealer.
- You can finally start the buying or selling of the international stocks through the online platform from India.
Option: 2 Invest in International Stock
Option: 2 Directly Approach the Foreign Brokerage Firms
- There are few international brokerage firms that are situated in India.
- You can also make an approach to them in order to open your account and start the trading or investing in the international markets.
- There are also some offices of the international brokers, where you can go and visit their offices in order to resolve your queries.
Option: 3 Invest in International Stock
Option: 3 Direct Investment in Mutual Funds or Global Equities
- The last option is to invest in the international market by investing in the international mutual funds.
- There is further no limit for making an investment in these types of funds, unlike the limitation that is discussed above.
- This states as the easiest method to invest in the international markets.
- The biggest advantage this holds is you don’t need to hold any overseas trading account for making the investment in the stock market.
- This also completes your wishes to invest in the international companies from India only.
So now let’s see the reasons why many of the domestic citizens not only about the Indian’s but across the world invest in the international markets.
Reasons to Invest in International Stock from India
- For the Diversification of the Portfolio
- To undertake the large opportunities
- And also to make the investment in their favorite company
So, guys this was all about the steps, risk associated with the investors or the traders that want to make their investment in the larger companies or their favorite companies. The process is quite simple and there are already many investors or traders like this that make the big investment from India to the international markets. Hope that you liked our blog on “How to Invest in International Stocks from India?” Trading Fuel is our blog site that helps to provide the education or to give the source to the readers of the stock market. We only aim to keep all the blogs simple and easy to understand. If you liked our blog you can share with your mates and make them also updated just like you.