The global equities have seen a meltdown in the first half of 2022. Amidst rising inflation, Fed rate hikes, and dwindling economic growth, the US market looks to be in a firm grip of the bears. While it is not known when the bear market will end, investors need to be ready to rise the bull market as and when it begins. Indian investors who are looking to diversify their portfolio geographically may consider investing in the US stock market. Some of the leading world companies such as Microsoft, Google, Tesla, Apple, Amazon, and many others are not listed on NSE or BSE stock exchanges. There are two ways to Invest in the US stock market from India – buying individual shares or buying ETFs. An exchange-traded fund (ETF) is a kind of mutual fund type that tracks a certain index. You can purchase any US stock, listed on Nasdaq or other indices, from India using international brokerage platforms. These platforms also make it feasible to purchase FAANG stocks.
Also, on the NSE International Exchange (NSE IFSC), a fully-owned subsidiary of the National Stock Exchange of India, you can easily purchase direct US stocks. You can transfer money from your local bank account to the bank account of NSE IFSC registered brokers after opening your trading and Demat account with them. Once the fund reflects in your broker’s account you are ready to trade on the NSE IFSC US Stock platform.
Further, access to foreign stock is also made possible by the India International Exchange (IFSC) Limited (India INX), the BSE’s international division. Through its wholly-owned subsidiary India INX Global Access, you can trade in international stocks, including shares of significant US-listed firms. India INX proposes to offer stocks from the US, Canada, UK, Europe, Australia, and Japan, covering about 80 percent of the investing universe.
US shares can be purchased through fractional ownership, making it possible for Indian investors to purchase stocks denominated in dollars. In practice, you can invest as little as Rs 5000 in any stock or ETF. In fact, you can start investing in US equities with just $1. Only on a stock exchange during trading hours can an ETF’s units be purchased or sold. ETFs are low-cost investments and allow one to take exposure to several stocks of the same index at one time. They come in various forms and typically track different indexes and sectors.
The Invesco QQQ provides access to all Nasdaq 100 companies with one investment. Similar to stocks, they even have their specific Ticker symbol. The fund ticker of Invesco QQQ ETF is QQQ. SPY ETF or the SPDR S&P 500 ETF that tracks the S&P 500 index also gives you exposure to FAANG stocks in a single investment along with other S&P 500 index companies.