Dollar dreams leave no one. Of course, you are thinking about US Stocks specifically. How many teenagers do you see daily flashing an iPhone in an Indian food outlet? Or walkers and runners, going on with their Nike Outfits. Did it strike you the number of American products and services we use daily?
It does not just stop at gadgets and apparel. There is a whole wide range of products beginning from toothpaste, soap, food outlets, financial services and it goes on. There are more than thousands of products that originate from the US and are used on a global level. No wonder the United States is home to some of the world’s biggest companies.
Along with this, it comprises a multitude of sectors including technology, energy, and much more. Anyone can create a highly diversified portfolio through investments in the US Stock Market.
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Here are a Few Reasons why you Should Invest in US Stocks:
1. Acquiring Global Exposure
Source: qz.com
The largest listed companies on the US stock market showed that 43.7% of all of the revenue was generated from outside of the United States. Out of which, Asia accounted for 8.26% of all the sales.
Along with that, the majority of the listed companies in the US are foreign companies that have penetrated the US market to take advantage of enormous amounts of investors. A purchased stock from the US market does not just have you invest in American markets alone but takes you on a world tour to international markets.
2. Get Access to the Largest and Most Liquid Market-
Did you know that it is the largest market in the world in terms of capitalization? It is five times the market of China and fifteen times the market of India. It is also so far the most liquid market, having double of China’s trades going through the stock exchanges.
3. A Currency Exposure
Investing in global stocks means exposed to heavy currency exchange rate fluctuations. In the last decade alone, the Indian Rupee has depreciated by 37% against the US dollar. So taking note of this, an investor has seen boosted returns by the depreciating rupee in the past year.
4. Facebook, Amazon, Apple, Netflix, and Google-
Source: medium.com
Investors’ portfolios are concentrated around FAANG [Facebook, Amazon, Apple, Netflix, and Google]. The market revolves around the spectrum of Investors turning to technology companies while looking to invest in growth stocks and simultaneously drawing a large amount of media attention.
Without a doubt, these companies have changed the way we live today. They have reshaped the world. Name a day you would go without one of these companies. They have turned heads in many aspects. Whether it is how to purchase goods and services, movies, video games, and communication. So, the shareholders of FAANG have no doubt in growth and are well rewarded.
5. Performing Market
There are a whole lot of opportunities in the US market. The time has come to consider that this market can diversify assets outside of the country as well. We all know the US economy is a superpower. Its innovative upcoming is a competitive edge to all of its investors. And most important there are several factors here for an investor to experience, along with making it a lucrative market.
How to Invest in US Stocks?
If you are still wondering how to Invest in US Stocks. To your Surprise! It is Pleasantly Easy! When you are looking to invest in US Stocks, you are looking to diversify your portfolio. Owning shares of Amazon, Google, Facebook, and more is much simpler than you think. Platforms like Groww, Geojit, Fintech platforms, and more let you become part-time owners of your favourite companies overseas, and the US market is the biggest part of them.
International Trading Involves 5 Primary Steps for you can Go Ahead and Invest:
1. Opening your Account
Source: investopedia.com
Choose your platforms, and the first step would be to go ahead enter your details such as name, address, mobile number, and more. Once you have your account created, your brokerage is created automatically.
2. Mandatory Documentation
The process of opening your account also brings forward the need for you to furnish certain documents. The documentation is the bare minimum and includes ID proof, Address proof, and much more.
3. Add Funds
After the account is approved and verified, you are enabled to transfer or add funds to your brokerage account and kick start the process in no time.
4. Do Not Forget the Formalities
Before you could add funds or invest in US Stocks, you need to comply with the RBI rules of exchange. It is a Liberalised Remittance Scheme. As an Indian resident, it is a mandate to buy dollars or any other currency using Indian Rupees from an authorized source in India. These dollars can be spent abroad for acquiring property or other assets.
5. Keep in Mind Rates
While you transfer Indian Rupees from your bank account to your brokerage account in the US, the exchange rate matters a lot.
Conclusion
When it comes to diversifying across geographies, the US market is the right place for any investor. The US market is a wealth-creating business when it comes to futuristic growth opportunities. However, before you could make up your mind to invest in the US Stock Market, there are a few things you can take into consideration. They are; do not look over the regulatory framework of the market, and always keep in mind forget exchanges, taxes, charges, and the fund limit.
