Step-by-Step Guide to investing in US markets from India

The need for safer and higher return alternative assets has made investing in US stocks a lucrative option. However, you need to understand the challenges and processes carefully and then select the brokers and stocks. This blog will serve as your step-by-step guide in the investing process and ensure the safety and security of your assets. Also, learn how pre-built portfolios can simplify and amplify your investing.

If stats in the first half of 2021 are to be believed, the best performing US stocks outpaced their Indian peers by offering more than 6X returns. Yes, 6X+ returns!

Indian investors who took exposure by investing in US equities built superior portfolios, compared to those limited to investment in domestic stocks.

Global Investing

Global investing enables you to access lower risk and higher return investment opportunities. Expert financial advisors consider foreign stocks a smart addition to an investment portfolio. Depending on the type of investors, advisors suggest a 5% to 10% of portfolio fund allocation for conservative investors, whereas up to 25% for the aggressive ones.

Investing money in the US stock market is gradually becoming popular in India. The reasons it has bagged the interest of many investors, via SAC’s global investing stacks, are- 

  • Simplified investment process and transactions
  • Investment in globally competitive companies
  • Safety and security of assets
  • Power to control your investments
  • Ease of liquidating assets
  • Better returns 
  • Risk diversification
  • Investment starts from $1000 only

Here is a detailed guide on investing in US stocks and how you can kick-start your hassle-free global investing journey.

Image Source – https://www.pexels.com/photo/cardboard-illustration-of-paper-money-and-coins-on-blue-background-5849556/

How to Start Global Investing? Step-by-Step Guide

The process of global investing includes three simple steps:

Step 1: Registration – You need to open an account on a global investment trading platform such as Stockal. Fill in your details, and complete your registration to create an account with a US-based brokerage company like DriveWealth.

Step 2: Funding – Fund the brokerage account by making an international remittance of $1000 via your bank account to the said brokerage account number. As per the RBI norms, you can invest $250,000 per annum under the LRS (Liberalized Remittance Scheme). But to start with, you can fund your account with an amount as low as $1000.

Step 3: Investment – The fund will be seen in your brokerage account wallet. You are entitled to invest in stocks, ETFs, or in our pre-built portfolios. Our global investing stacks empower you to stay in control of your investments. You also have the flexibility to liquidate and withdraw funds back to your bank account in T+3 days with no exit load, no lock-in, and no restrictions on withdrawals.

The account opening process takes less than 5 minutes, and the end-to-end process takes only 24 hours. 

How Safety & Security of Your Money is Assured?

Rest assured that your money and personal data are protected when investing through Stockal. They follow the best practices and provide industry-leading infrastructure – 

Platform Security: The platform is a highly secure and robust platform, with 256-bit encryption and Secure Sockets Layer (SSL). Stockal platforms have best-in-class log-in methods, ID verification, and automatic logouts to prevent any unauthorized access or fraud. 

US Securities Protection Acts: The stock market investments in the US are highly protected under the Securities Investor Protection Act (SIPA), which is further overlooked by the Securities Investor Protection Corporation (SIPC). 

Insurance: Your securities are insured by SIPC for an amount up to $500,000. The cash portion of your investments is held in M&T Bank – and is insured up to $250,000 by FDIC. Remittance from your Indian bank account is pre-approved by RBI’s LRS scheme.

Repatriation: The stock you purchase from the US-listed securities will be visible in your US Demat account. There is no lock-in, and you may sell your securities anytime you wish. Repatriation of your money is transferred back to your Indian account in T+3 days.

How Can Pre-built Portfolios Benefit Investors?

A wise and diverse portfolio requires a lot of research, analysis, and time. Since it is impractical for most to do it themselves, a pre-built portfolio makes an excellent option. A stack or pre-built diversified portfolio is a scientifically constructed basket of carefully selected investment instruments from globally competitive companies. 

Such portfolios are built by investment experts based on extensive research and financial analysis to offer the right mix of different asset classes with different risk-return cycles, including equities, bonds, ETFs, Mutual Funds, BDCs (Business Development Companies), SPACS (Special Purpose Acquisition Company), commodities and more.

Image Source: https://www.stockal.com/stacks/list

This diversification reduces the risk of some non-performers with the ones performing above par to ensure soaring returns. With Stockal, the selection of the instruments within the basket is based on a theme like Innovation, Technology, Real Estate, Blue-chip, Sustainable Energy, to name a few.

Themes are selected based on deep SAC research of forecasted business models that will thrive and yield returns superior to the leading market indices. 

Foreword

Geographical diversification is a great way to amp up your portfolio. In the long term, markets in developed countries tend to be less volatile and more rewarding. Participate in global growth by investing in the US stock market for just $1000. If you are looking to make your portfolio global, contact us.

References – 

https://www.investopedia.com/articles/investing/032615/how-trade-foreign-stocks.asp

https://www.hdfcsec.com/globalinvesting

https://www.indmoney.com/articles/us-stocks/international-stock-market-investment-guide

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