Fractional Ownership is allowed in US stocks and one can start accumulating US shares even with a small amount.
Indian investors looking to invest abroad are getting a lot of attention these days. In addition to the existing foreign funds, several international mutual fund schemes have been launched recently, thus giving an option to diversify their domestic portfolios.
Some of these international funds are Fund of Funds while some could be Feeder funds, noticeably many are passive index funds tracking most of the leading global indices.
Alternatively, buying foreign stocks is not a complicated affair as it sounds. Owning some of the top US stocks such as Facebook, Apple or Amazon including the recent top movers like Salesforce, Visa, American Express Co., Costco Wholesale Corp., Expedia Group, Zivo Bioscience, Paltalk, amongst others, is possible for Indian investors in almost the similar way you own the shares of Zomato, Reliance, Tata Motors, IEX etc, in the Indian stock market.
The process of investing in US stocks starts with opening a foreign trading account through an international brokerage firm. On completing the KYC and other formalities including that of RBI’s LRS rules, which the brokerage firm helps in accomplishing, you can start trading in US stocks.
Now, if you are wondering whether buying US stocks which are denominated in dollars will be an affordable deal, here’s the good news. Fractional Ownership is allowed in US stocks and one can start accumulating US shares with an amount as low as Rs 100. Unlike Indian stock exchanges, the price is not a barrier in the US stock market. Simply decide how much you need to invest and the number of shares will be automatically calculated for you.
The better way could be to buy a few of the top US stocks with a fixed sum of Rs 5000 or even Rs 1 lakh at regular intervals. US stock market presents opportunities to investors to own some of the leading global blue-chips and reap the benefits over the long term.
Currently, global equities are trading at near all-time highs. But, that should not deter investors to keep looking for long term opportunities across sectors. The potential being thrown by home-grown companies in the US is something investors need to take advantage in the long term. To start with, keep tracking the leading stocks and use any correction or dips as an opportunity to accumulate them for the long term.