How to Invest in US Stock Market from India?:

You know what, there are different varieties of the assets that are available in the Indian Stock market for the Indian investors and for the traders to punch their trade and to make money out of it.

In the contradictory, the truth is that there many great brands are there which are listed in the US stock market but are not easily available in Indian Stock Market.

So, there are many investors or the traders that also want to grab the ownership of such brands and to enjoy the perks.

After buying the shares of the branded companies, the shareholders also get the part of the ownership.

Further moving ahead let make this very clear that will work for you.

Investing in the US stock market is not similar to make an investment in the Indian stock market in regards to the amount of investing.

Let see around how much the Indian investors can invest in the US markets:

How much can an Indian Investors Buy US Stocks?

The Reserve Bank of India (RBI) gives the permission to use only around US $250,000 per financial year by the individual Indian citizen.

Using the current exchange rate and with the conversion of these dollars amount into INR rupees can be an investment of crores.

As there are charges that have increased with converting the INR into dollars.

If you have 3 members in the family then you can invest $250,000 X 3 considering each family member as a separate member of the house.

Sometimes, there is a case where you invest in the US stocks there is a chance that the exchange rate is different at that point in time and while converting it into the domestic currency the rates might change.

In this, there might be possibility of profit and a loss in a deal.

This also contains the currency fluctuation risk with it.

“Set Your Priority At Every Step”.

Now that you get about the investment amount and the risk associated with this so let’s directly jump on the topic on how to invest in US markets.

How to Invest in US Stock from India?

       I. Direct Investment

Option: 1 To open the account from the Indian Firms that have the connections from US Markets

  • You can open the overseas trading account.
  • Search for that broker that gives you the facility to invest in the US stock market also.
  • There are a few famous identities of the brokerage firms that provide the service of investing in the US stock market.
  • They are many tie-ups with US stock markets and that are ICICI Direct, HDFC Securities, Reliance Money, etc.
  • These brokerage houses will help you and will made it simple for everyone to open the overseas trading account with the overseas broker.
  • Then, you need to submit your separate account opening form in time with the Know Your Customer (KYC) documents.
  • After completing the documentation then you need to transfer the amount to the overseas partner of that domestic equity broker from which the services has been taken.
  • For further procedure you need to submit the funds and 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.
  • At last, you can finally start the buying or selling of the US stocks through the online platform from India.

Option: 2 To Directly Approach the Foreign Brokerage Firms

  • There are only few overseas brokerage firms that are located in India.
  • You can also make an approach to them in order to open your account and start the trading or investing in the US markets.
  • There are also some offices located in India of the international brokers, where you can go and visit their offices to resolve the queries.

   II. Indirect Investment

Option: 3 To make the Direct Investment in Mutual Funds

  • The final option is to invest in the US stock market is by investing in the US mutual funds.
  • Further, there is 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 US Stock 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 US Stock companies from India only.

So now let’s check out the reasons why many of the domestic citizens not only about the Indian’s but across the world that invest in the US Stock markets.

Reasons:

  1. To get a benefit of holding a diversified portfolio.
  2. To get a chance to take the large opportunities
  3. And also to make the investment in their favorite company

Conclusion

So, I would like to conclude the topic by ending it with the crux that the process of making investment is simple and there are already many investors or traders like these that make the large investment from India to the US stocks markets.

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Author

Prashant Raut is a successful professional stock market trader. He is an expert in understanding and analyzing technical charts. With his 8 years of experience and expertise, he delivers webinars on stock market concepts. He also bags the ‘Golden Book of World Record’ for having the highest number of people attending his webinar on share trading.