Exposure to the international stock market is a good way of diversifying one’s investment portfolio. It is possible to invest in international stocks — global markets or emerging markets using various investment avenues. Under the Liberalised Remittance Scheme (LRS) of the RBI, a resident Indian individual can invest up to $2,50,000 per financial year in international markets.
Mutual fund route
One can invest in the international markets by investing in international MF schemes in the form of fund of funds or ETFs that invest in international funds having exposure to international markets. Ticket size for investing in MFs is very low and it does not need an overseas trading account.
Indian brokers’ tie-up with international brokers
Many Indian broking houses have tie-ups with international brokerages with respect to overseas investing. Check with the existing broker whether they offer such services.
International broker
Few international broking firms allow Indians to open an account with them and invest in foreign securities. These firms also provide their research and analytics support to their clients to help them make their investment decisions.
Online platforms
Many online platforms offer opportunities for investments in foreign securities by using their recommended portfolios or themes.
Points to note
- Such investments are subject to the risk of fl uctuating foreign exchange rates.
- For investing, the investors need to fund their account with US dollars, for which the bank may charge international wire fees.
(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
FAQs
To invest in stocks, open an online brokerage account, add money to the account, and purchase stocks or stock-based funds from there. You can also invest in stocks through a robo-advisor or a financial advisor. If you're ready to invest in stocks yourself, this six-step process may help you get started.
How do I invest in international stocks? ›
Key Takeaways
- Investors can access foreign stocks via ADRs, GDRs, direct investing, mutual funds, ETFs, and MNCs.
- Buying foreign stocks allows investors to diversify their portfolio's risk, in addition to giving them exposure to the growth of other economies.
To invest in stocks, open an online brokerage account, add money to the account, and purchase stocks or stock-based funds from there. You can also invest in stocks through a robo-advisor or a financial advisor. If you're ready to invest in stocks yourself, this six-step process may help you get started.
Why do people invest in international stocks? ›
Investors should consider such investments as an inexpensive way to hedge portfolios against a potential U.S. stock-market pullback. In particular, Japan, Europe and select emerging markets, such as Brazil, India, Vietnam and Mexico, offer attractive opportunities.
What are 3 tips for investing in the stock market? ›
5 stock investment tips for beginners
- Use your personal brand knowledge. ...
- Know the fundamentals. ...
- Use technical indicators to spot trends. ...
- Do the math. ...
- Commit to investment goals.
Opening an Overseas Trading Account with a Domestic Broker
They act as intermediaries and execute your trades. You can open an overseas trading account with any such broker. You might have to submit a set of documents to open this account. However, it is important to remember that this facility has some restrictions.
What are good international stocks to invest in? ›
Best International Companies to Own: 2024 Edition
| Company Name | Ticker | Sector |
|---|
| Airbus | EADSY | Industrials |
| BAE Systems | BAESY | Industrials |
| Canadian National Railway | CNI | Industrials |
| Canadian Pacific Kansas City | CP | Industrials |
29 more rowsApr 22, 2024
Want to Get Richer? 3 Best Stocks to Buy Now and Hold Forever
- Amazon continues to establish itself in huge markets.
- Meta Platforms' core business has room to run with AI.
- Microsoft is reliable, and that's not likely to change.
Best ways for beginners to invest money
- Stock market investments.
- Real estate investments.
- Mutual funds and ETFs.
- Bonds and fixed-income investments.
- High-yield savings accounts.
- Peer-to-peer lending.
- Start a business or invest in existing ones.
- Investing in precious metals.
Billionaires have access to another investment avenue, called hedge funds, that the average person doesn't. You can invest in a variety of things through a hedge fund, including individual stocks, land, commodity futures, bonds, and currencies.
Depending on your return objectives and risk tolerance, your international allocation should be 5-25% of your total stock market investments and the international weighting necessary for truly global exposure is likely to increase over time as global trends become even more entrenched.
Why is international investing now? ›
Why International Stocks May Finally Shine. Higher interest rates and inflation may favor international investing going forward. Low interest rates and low inflation favored growth stocks for much of the 2010s. This has helped the tech-heavy US market outperform for an unusually long time.
What makes a stock international? ›
However, unlike domestic stock funds, which invest primarily in US companies, international stock funds primarily invest in companies outside of the US.
What are the 3 A's of investing? ›
Remember the 3 A's for retirement saving: amount, account, and asset mix.
What is the 3 stock method? ›
A three-fund portfolio aims to diversify your portfolio across three asset classes: domestic stocks, international stocks, and domestic bonds. You can use a three-fund approach in most 401(k) accounts. Investors choose the allocation of funds that suit their goals.
What is the 3 way investment strategy? ›
To build a three-fund portfolio, invest in a total stock market index fund, a total international stock index fund, and a total bond market fund. These can be either mutual funds or ETFs (exchange-traded funds).
Is it legal to invest in foreign stocks? ›
Investors can purchase U.S.-listed foreign stocks that trade in the United States through a U.S. broker. Trading on foreign markets. A U.S. broker may be able to process an order for shares of a company that only trades on a foreign securities market.
Can you buy shares internationally? ›
An international share trading account will allow you to invest in some of the biggest global businesses, including Apple, Alphabet, Facebook and many more.
Which broker is best for international trading? ›
Intro and winners
- CMC Markets - Low forex fees. ...
- Optimus Futures - Low trading fees and free ACH withdrawal. ...
- tastytrade - Low trading fees. ...
- Alpaca Trading - Great API trading service. ...
- Swissquote - Access to many markets and products. ...
- TradeStation - Great web and mobile trading platform. ...
- Spreadex - Low forex fees.
