If you are an Indian stock market investor, you might have probably heard your friends or other investors talk about Tesla or even Apple. But beyond just hearing about them every other day, does it really make sense to invest in the US market? The answer is: Yes. Several investors are unaware of the fact that US stock trading comes with diverse benefits that most Indian investors aren’t aware of.
This article will break down to you the real benefits that Indians can enjoy by investing in US stocks, ranging from sectoral diversification to dollar exposure, and even some other perks that can eventually boost their returns.
Why Should Indians Invest In The US Market?
Some of the major advantages that Indian investors can enjoy with US stocks investing are given below:
- Hedge against rupee depreciation
The US stock market helps you appreciate investments with returns in US dollars. In the past 15 years, the Indian rupee has lost its value against the dollar, and this depreciation itself boosts the INR returns of Indian investors, even when the stock doesn’t rise much.
- Gain from the big moves
Indian stocks come with lower or upper circuits that limit how much a particular stock and fluctuate in a day. It is suitable for risk control, but caps upside, too. On the other hand, the US market does not come with any such strict limits. They implement market-wide halts and broader limit up-limit down rules during crashes, but don’t restrict to regular gains. This eventually means that an Indian investor investing in the US market can get massive rallies overnight.
- Diversification beyond the home country
By making global investments via a US trading app, you do not get restricted only to India-specific risks, such as inflation, swings, policy changes, and domestic demand slowdowns. You also get access to global industries that are absent in India, such as Biotech, semiconductors, and AI infrastructure.
- The mother market affect
The US stands as the most liquid and largest market across the globe, accounting for around half of the global equity value. Trends in the US ripple outwards. When the cut rates or Fed hikes, or when Apple reports earnings, it moves the sentiments of global investors. Additionally, with US exposure, you not only react to global transformations but are actually a part of them.
- Accessible US market with fractional shares
One of the greatest myths that most Indian investors believe in is that the US stocks are too expensive to afford. However, with fractional investing, Indian investors can invest in US stocks with as little as ₹$1 worth of any stock. This removes entry barriers for retail investors, and rather than investing thousands, they can just start by owning a small slice of a particular share.
Conclusion:
The US market provides a combination of global diversification, access to innovation, dollar exposure, liquidity, and other significant advantages for Indian investors, such as tax credits and fractional investing. In addition, the US stock market stands as the trend setter for global equity, and adding US stocks to your portfolio is not only a luxury but a smart, long-term financial strategy.