Indian investors are increasingly investing in US stocks, realising the opportunity in geographical diversification.
Indian investors are increasingly investing in US stocks, realising the opportunity in geographical diversification. The lure of investing in new-age technology companies such as Tesla, Netflix, Apple, and Amazon have acted as a catalyst in attracting investors during the last one year. Anupam Guha, Head – Private Wealth, ICICI Securities; Sandeep Bhardwaj, CEO Retail Broking, IIFL Securities; and Vinay Bharathwaj, Co-founder, Co-CEO, Stockal tell Shaleen Agrawal all about Virtually Borderless Investing. The panel explores not only why and how to invest overseas, but also discusses stocks or sectors to invest; tax implications of investing abroad; portfolio allocation; risk factors; returns expectations; exit options; and more.
Watch: Virtually Borderless Investing — Investing in US and overseas equities from India
“Customers are fascinated about investing in stocks that are not listed in India,” said Sandeep Bhardwaj, CEO Retail Broking, IIFL Securities. He added that companies such as Facebook, Microsoft, Nike, Starbucks, and Netflix are famous and offer products and services that are used daily across the globe, which entices people to participate in their growth journey.
Plethora of options to invest in
Brokerage firms and other platforms in India have now started offering investors the opportunity to invest in not just US stocks but also ETFs, managed funds, and even bonds. The diversified US stock market provides investors with the opportunity to invest in various assets ranging from factor funds, active funds, ESG funds, and even units of a particular stock. In terms of what investors are currently investing in, Sandeep Bhardwaj said that he is seeing good traction in the FAANG story, which is a more popular stock theme for anyone who starts investing in the US.
How much to allocate?
Talking about how investors should allocate their funds to global investing, Anupam Guha, Head – Private Wealth, ICICI Securities advised investors to start with somewhere around 5-15%. “It is for each client to see their risk appetite and invest. From a diversified perspective it makes sense and from a trend perspective, anywhere between a 5-15% allocation is going in and that is largely the trend,” he added.
Account opening made easy
Opening an account that lets you trade in the US stock market has been democratized by various platforms recently. “We have made the process (of opening an account) as easy and simple as possible. Right from on-boarding, today a client can open an account in 3 minutes and the account is activated instantaneously,” said Vinay Bharathwaj, Co-founder, Co-CEO, Stockal.