Diversifying your portfolio over geographies can be one of the most prudent investment decisions you can make. The way to go ahead with such a plan is to invest in US stock as it is one of the most popular choices of international investment today. The United States of America is home to some of the greatest capital-creating corporations and the best technology firms in the global arena.
Furthermore, there exists a low correlation between the US equity markets and the Indian equity markets, making investment in US stocks ideal for Indians. Nonetheless, this is a leap you should take after considering certain factors relating to US stock investment.
Before you invest in any stock, the main step to take is to open a demat account with a broker in India. Once you do this, you are well-equipped to indulge in your stock investment in India and in the US. Then you can take advantage of the Liberalised Remittance Scheme launched by the Reserve Bank of India, giving Indian residents the leeway to remit amounts to the tune of $250,000 each year. This is a limit that applies to every individual, and this includes minors as well, meaning that a family consisting of four people are able to remit USD amounting to 1 million each year.
The quota of remittance includes investments such as US securities, bank deposits, real estate, etc, plus expenses like student education and travel abroad.
Through any online trading app, especially that of a reputed brokerage, you can invest in US stock just as you make any other investment like a subscription to an upcoming IPO. Its a good idea to invest in US stock, but you must take some time to consider the following factors:
You may open a demat account and start your journey in Indian stock investment. You may have also subscribed to any upcoming IPO. However, it's time you thought of investing in US stock to truly add diversification to your financial portfolio.
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