A lot of investors wonder how to invest in US Stocks from India. At the same time, there are others who ask if it’s better to invest in India or if they should consider US markets. While investing in US stocks and funds makes sense for some of us, many may be happier investing in India alone.
Whether you choose to invest in Indian markets or international stocks and funds there are a few things to keep in mind. The decision to pick either or both depends on factors like the amount of money you can invest, the time horizon you’re looking at and the risk you’re willing to take among other things.
Benefits of Investing in India
1) Bank Interest Rates
2) Regulatory Policies
3) Conversion Loss
4) Scope For Growth
5) Easy Liquidity
Benefits of Investing in the US Stock Market
1) Create a Nest Egg
2) Hedge Against the Rising Dollar
3) Invest in Popular Companies
4) Geographical Diversification
5) Historical Performance
The US markets have historically outperformed the Indian stock markets. Based on that alone, many find it more encouraging to invest in the US.
You can read about the benefits of investing in the US stock market in detail as well.
Disadvantages of Investing in India
Volatility: The Indian Stock Market is more volatile than the US stock market. This means that global changes can have an adverse effect on the market.
Currency: There is always a risk that the Indian Rupee will depreciate in value and eat into some of the profits you may have earned.
Disadvantages of Investing in US Stock Market
Paperwork: Investing in US Stocks will involve more paperwork and documentation than investing in India.
NOTE: If you invest in the US via Cube Wealth there is only 1 extra step compared to investing in India
Awareness: You are more likely to miss out on important political, economic and social factors that drive change in US Stocks while sitting in India.