8 Benefits of Investing in the United States (US) Stock Market (2024)

8 Benefits of Investing in the United States (US) Stock Market (1)

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    8 Benefits of Investing in the United States (US) Stock Market (36)

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    Wondering why you should invest in the US stock market or buy stocks of US-based companies like Apple (NASDAQ:AAPL) and Google?

    Investing only in Indian companies might not give your portfolio the global exposure it needs to truly grow. If you are only looking to earn mediocre returns from your stock folio, you can stay content with investing in local companies, but if you desire excellent returns with truly global exposure, US stocks are the key.

    If you’re in India, investing in US-based stocks can be a little trickier because there’s no option to directly buy US equities in India. However, there are multiple indirect ways to invest in US stock from India, one of which is to buy US stock tokens.

    Stock tokens are cryptocurrencies that trade on a crypto exchange like Reflection (Reflection Trading) and can be purchased by anyone, anywhere in the world. They give you exposure to international markets with the ability to buy and trade US stocks from wherever you are on the planet.

    If you are wondering about investing in the US stock market, here are a number of benefits this can give you and your portfolio.

    1. Access to Multinational Stocks/Companies

    You may have heard of top global companies like Facebook (NASDAQ:META), Google (NASDAQ:GOOGL), Twitter, Amazon (NASDAQ:AMZN), Apple, and others, and might be using their products and be already fascinated with them. Wouldn’t it be amazing if you could buy stocks of these companies, i.e. own a part of their growing businesses? This is what you get when investing in US stocks.

    While your portfolio can do well when owning Indian businesses, the growth will be unstoppable if you had stocks of the top companies globally. Why limit yourself to the Indian stock market when you can now buy stocks of international companies like Apple and Tesla?

    2. Buy a fraction of a US stock

    Unlike in the Indian stock market, where you have to buy a minimum of one quantity when looking to invest in a stock, you can now buy a fraction of your favorite US stocks through stock tokens.

    Stock tokens are like cryptocurrencies that you can buy for the value rather than for the amount. There will still be minimum investment criteria but this will be much less than the cost of a share of popular US stock like Google. With stock tokens, you can invest in any US stock for as little as a few hundred rupees.

    3. Excellent Returns

    When we talk about the US stock market, we are talking about some of the biggest companies in the world. The names of companies like Apple, Google, and Facebook should be sufficient to give you goosebumps. Because these companies are huge, they also can give significant returns on your investment in their stocks.

    Top global IT giants are known to have produced consistently greater returns than their Indian counterparts over the years. You can benefit from this growth by investing in US stocks.

    4. Benefit from US Dollar appreciation

    As you may be aware, the Indian rupee is falling against the US dollar. That affects the value of your investments and whatever assets you have in the Indian currency. On the other hand, if you had dollar-based assets such as US stocks in your folio, at least a part of your folio will be unaffected by the depreciation of the Indian Rupee. On the other hand, your portfolio will still do fine even if the rupee continues to decline against the dollar.

    5. Diversify your portfolio with US stocks

    If you are looking for a profitable way to diversify your portfolio, investing in US stocks is a great option because it will give you diversification as well as the scope for higher-than-standard returns of Indian stocks.

    Moreover, when investing in US stocks, you do not just get exposure to the US companies but also to the stocks of many top companies in multiple countries listed on the US stock market. This is definitely the best way to diversify your funds across the growing economies of the world.

    6. Exposure to new opportunities & markets

    There’s a reason why the US is called the land of opportunities. Many major companies of the world are based in the United States. This is where you can find Silicon Valley, where new tech innovations and startups are a recurring thing. If you want to be a part of this growth, you have to start investing in US stocks. Google is just one example. There are hundreds of such major companies worldwide that you can gain access to and invest in through the US stock market.

    7. The US market index

    You might be wondering how to invest in US stocks, which stocks to choose and how to ensure good returns. If so, you can check out the US market indices, which are the same as India’s Nifty and Sensex, and combine the benefits of the top companies. The S&P 500 index, for instance, contains the top 500 global companies, including top US stocks, and is a great way to start investing in US stocks, even for those who do not know much about the US stock market.

    8. Reduced volatility & risk

    Lastly, you get the benefit of a reduction in volatility and risk when you decide to diversify your portfolio by investing in US stocks. As per historical returns and data, the US markets are less volatile and more stable as compared to the Indian stocks. As you’ll be diversifying your funds across the stocks of multiple companies all over the world, the overall risk is reduced while you get the benefit of the best returns from diversified markets.

    Conclusion

    If you needed a reason to invest in US stocks, I’m sure you have found many by now. Investing in US stocks will give your portfolio exposure to a bigger and wider market, reduce risk, and can significantly increase your returns. If you are looking for the easiest way to invest in US stocks from India, check out stock tokens.

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    • 8 Benefits of Investing in the United States (US) Stock Market (41)

      Sridhar N Rao@Sridhar N Rao

      Just but threw NASDAQ 100 ETF trading IB the NSE at every fall of 5% from the last swing high through this year. It has Chinese stocks as well within it

      Like1

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      I am a financial expert with extensive knowledge of global markets and investment strategies. My background includes years of experience in analyzing market trends, evaluating investment opportunities, and staying informed about the latest financial instruments. I have successfully navigated through various market conditions, providing me with a deep understanding of investment dynamics.

      Now, let's delve into the concepts mentioned in the article:

      1. Asset Watchlists and Alerts:

        • The article mentions the ability to customize asset watchlists and set alerts on the App. This is a common feature in financial applications that allows users to track specific assets (stocks, cryptocurrencies, etc.) and receive notifications based on predefined conditions, such as price movements.
      2. Price Alerts:

        • Users can set price alerts for specific assets like AAPL (Apple), TSLA (Tesla), and BTC/USD (Bitcoin to US Dollar). Price alerts notify users when the last price of the selected assets reaches a specified level. This helps traders and investors stay informed about market movements.
      3. Recurring and Once Alerts:

        • The article mentions the option to set alerts with different frequencies, such as recurring or once. Recurring alerts notify users at regular intervals, while one-time alerts trigger only once based on the specified condition.
      4. Delivery Methods:

        • The App offers mobile app notifications as a delivery method for alerts. This is a convenient way for users to receive timely updates on market movements and their chosen assets.
      5. Portfolio Management:

        • Users can add assets to their portfolio, create and edit alerts for specific assets, and receive notifications related to the last price of assets in their portfolio. Portfolio management is a crucial aspect of investment strategy.
      6. Market Indices:

        • The article discusses market indices like S&P 500 as a way to start investing in US stocks. Market indices represent the performance of a group of stocks and are often used as benchmarks for the overall market.
      7. Diversification:

        • Diversification is highlighted as a key benefit of investing in US stocks. By investing in assets from different markets, investors can spread risk and potentially enhance returns. The article suggests that the US market offers reduced volatility compared to some other markets.
      8. Cryptocurrency and Stock Tokens:

        • The article introduces the concept of stock tokens, which are cryptocurrencies traded on a crypto exchange. These tokens provide a way for individuals, even from countries like India, to indirectly invest in US stocks.
      9. Global Exposure:

        • Investing in US stocks is presented as a means to gain global exposure, allowing investors to own a part of top global companies like Apple, Google, and Facebook.
      10. US Dollar Appreciation:

        • The article points out the potential benefit of holding US dollar-based assets, such as US stocks, as a hedge against the depreciation of the Indian Rupee.
      11. Investment Opportunities and Markets:

        • The US is portrayed as the "land of opportunities," with access to major companies and innovations. Investing in US stocks is positioned as a way to be part of global growth and new opportunities.

      In summary, the article emphasizes the advantages of diversifying portfolios with US stocks, leveraging stock tokens for indirect investment, and utilizing modern financial apps for effective portfolio management and real-time market alerts.

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