Investing in the US stock market has become an attractive option for Indian investors looking to diversify their portfolios and gain exposure to global giants like Apple, Amazon, Microsoft, and Tesla. With the help of technological advancements and regulatory frameworks like the Liberalised Remittance Scheme (LRS), it’s now easier than ever to invest across borders. Here’s a beginner-friendly guide to get you started.
Why Invest in the US Stock Market?
The US stock market is home to some of the world’s most valuable and innovative companies. It offers:
- Global diversification
- Stable returns from mature businesses
- Exposure to cutting-edge sectors like AI, clean energy, and tech
Investing in US stocks also acts as a hedge against currency risk, especially when the rupee weakens against the dollar.
How to Start Investing in the US Market from India
1. Choose the Right Investment Platform
Several Indian and international brokers offer services to invest in US stocks. Popular platforms include:
- Vested
- INDmoney
- Groww
- ICICI Direct Global
- HDFC Securities (Global Investing)
These platforms allow seamless onboarding, KYC, and fund transfers under LRS.
2. Open a Global Investing Account
You’ll need to open an international trading account. This typically includes:
- PAN Card
- Aadhaar Card
- Bank account details
- Address and identity verification
3. Fund Your Account Through LRS
The Reserve Bank of India permits Indian residents to invest up to USD 250,000 per financial year in foreign assets. Funds can be remitted via your bank using the LRS route.
4. Start Investing
Once your account is funded, you can invest in:
- Individual US stocks like Google, Meta, or Netflix
- ETFs (Exchange Traded Funds) like S&P 500 or Nasdaq-100
- Fractional shares if you don’t want to buy a whole unit
Key Concepts to Understand Before Investing
A. Currency Conversion Fees and Taxes
Be mindful of currency conversion fees, brokerage charges, and taxation on dividends and capital gains in both India and the US.
B. Market Timings
US stock markets operate during different hours (7 PM to 1:30 AM IST), so plan your trades accordingly.
C. Risks and Volatility
International markets have their own risks such as geopolitical tensions and economic shifts. Always invest after proper research.
Understanding Market Jargon: Long Unwinding Meaning in Stock Market
As you explore the US markets, you'll encounter technical terms. One such concept is "Long Unwinding".
Long unwinding meaning in stock market: It refers to the process where investors sell off their long positions (buy positions) in anticipation of falling prices or to book profits. It signals a potential bearish trend in the near term and is commonly seen in futures and options trading.
For example, if institutional investors start selling tech stocks after a long rally, it may indicate long unwinding and a shift in sentiment.
Final Thoughts
Investing in the US stock market from India is no longer reserved for experts. With the right platform, proper understanding of tax implications, and basic financial literacy, you can begin your journey toward global wealth creation. Always start small, diversify, and stay informed.
For more insights on global investing and market strategies, visit Appreciate Wealth—your trusted guide to intelligent financial growth.
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