How to Invest in US Stocks from India?

Do you plan on investing in international stock markets from India, specifically US stocks? No worries; let’s discuss some essential considerations when investing abroad from India.

International transactions are frequently calculated in US dollars due to its rich economic history in global transactions. While communism spread quickly during the late 19th and early 20th centuries across many countries (adding fascism along the way!), America remained more or less an open economy with some elements leaning toward capitalism – no surprise then that US was one of the early economies, counting UK colonies as economies (#represent) to engage in international trading activities and stay involved with it after.

Not surprisingly, China ranks among the leading economies when measured by economic value addition. I will provide further detail.

Why Should You Invest in US Stocks? I am happy to inform you there are multiple reasons, and will go through each one before discussing how-to invest. If you already feel convinced then jump ahead.

1. Money but More…
Over the past decade or two, US markets have outshone Indian ones in terms of value creation. This may be attributable to various causes – be they tech empires in Silicon Valley or America’s voracious appetite for oil – yet during that same decade the Dow delivered 196% in returns while SENSEX only reached 150% at most; clearly an unequal comparison.

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Additionally, over the same timeframe or last several decades, Indian Rupee (INR) has seen its value decline on international markets while US Dollar (USD) has increased, creating a notional loss (down 44% in 10 years if you’re curious. Or lazy).

2. Global Portfolio
I will present to you an argument of closed economies during prehistoric, pre-computer trading desk times. Within an economy, investments are the surplus left after consumption and savings have been allocated; as physical marketplaces had communication barriers that limited investments due to market size differences; it made more sense for physical markets than digital. Once again you see where I’m going here – today globalized supply chains make possible shipping goods manufactured in Bangladesh sweatshops directly to US or Indian destinations without incurring additional charges or extra duties!

Since products are globalized, why should investments not follow suit?

The main advantage is that products do not rely on geography as a basis of target markets, enabling you to anticipate local demand while investing for long-term value creation within your parent company. (Before you respond that local increases or decreases in demand don’t matter much for an MNC with many markets, bear in mind that demand patterns tend to repeat themselves)