How to Invest in Foreign Stocks from India?

Yes you can easily invest in foreign Stocks from India. Let's assume you want to invest in US stocks.

With RBI's new Liberalized Remittance Scheme, it is now possible and completely legal to invest upto USD 250,000 per year in foreign markets.

Before we understand the step-wise procedure to invest in US Stocks, let us first understand for what reason should someone consider investing in US markets?

Reason No 1: US markets have performed in a way that is better than Indian markets in the last 10 years. In the event that we compare S&P 500 (significant US index), NASDAQ (significant US index) and NIFTY 50 (significant Indian index) the US indices have consistently outperformed the Indian index.

Thus investing in US markets would you be able to give your portfolio some additional returns.

(Also Read: How to invest in Mutual Funds of Global Markets outside India?)

Reason No 2: Access to Hyper Growth Companies and all around oiled investment regulators.

Most hyper growth companies such as Facebook, Amazon, Apple, Netflix, Tesla, Google and so forth are listed in US markets and are chipping away at technologies of things to come with strong moats around their businesses and are expected to proceed on this growth trajectory. Also the regulations, financial structures of listed US companies are transparent and much controlled to protect investor interests.

Reason No 3: Geographical and Currency Diversification

Investing in the US gives you protection against falling value of Indian Currency against the US dollar and consequently improves your returns.You also get geographical diversification which protects your investments against any turmoil in the local economy.

Thus, US stocks could be an incredible extra to your portfolio.

Now going onto the real question,

How to invest in US stocks from India?

The process is exceptionally straightforward:

Open US Stock Trading Account - You will require a US stock trading account to purchase and sell US stocks, Transfer money from your bank account to your new US Stock Trading account - This procedure changes from bank to bank, for ICICI bank and HDFC bank the process is completely online and takes from 2 to 7 days to get completed. You might be charged some money (Rs 500 to Rs 1500) by the bank to transfer the amount.

Choose the stocks you need to invest in - You can invest in quite a few stocks, you can even purchase shares in fractions. Invest and Grow - As long as you have enough money to invest in your US stock trading account you can exchange real-time markets.

(Also Read: Best long-term stocks to invest in 2021)