WHAT ARE THE THINGS TO CONSIDER BEFORE INVESTING IN THE US STOCK MARKET FROM INDIA?

 

Every investor in the stock market would have a dream to perform currency trading in the foreign market, especially people would be eager to trade dollar currency pairs in the US stock market for better returns. But, while investing your valuable savings in the US stock market there are certain aspects that have to be taken into consideration for successful trading and that's exactly what Goodwill wishes to help you with through this blog!

 

Goodwill is one of India's most trusted brokerage firms offering expert strategies for its valuable investors at lowest brokerage fees. To know more about Goodwill, click here! In this blog, we'll be discussing about certain facts that needs to be considered before investing in the US stock market.

 

THINGS TO BE CONSIDERED BEFORE INVESTING IN THE US STOCK MARKET:

 

1. ANALYZE THE SCHEMES PROPOSED:

An investor can invest in the US stock market under RBI's Liberalized Remittance Scheme or LRS. This scheme allows every Indian investor to remit up to $250,000 per year. This limit is determined for an individual, including minors, which implicates if a family consists of 4 members, they can remit up to $1million per financial year. These investments consist of US securities, real estate and bank deposits.

 

2. GEOGRAPHICAL DIVERSIFICATION:

Geographical diversification is considered as one of the most important factors in US stocks investments as it offers stability to your portfolio. By investing in the US stock market, you can participate in the global growth because through ETF's listed in the US stock market, you get access to explore wider economy options. The US stock market also allows investors to invest in emerging companies, an option currently unavailable in India.

 

3. IMPACT OF FOREIGN EXCHANGE:

While investing in the US stock market, you should monitor the fluctuations in the exchange rate as the value of Indian Rupee against US Dollar has depreciated to an average of 3 to 5 percent in the recent years. This is because when you invest in the US stock market your investment would be performed through US dollars. Hence if the US dollar value increases, it gives an extra boost to your portfolio value.

 

4. TAXATION & OTHER CHARGES:

As an investor you should consider the tax implications on your foreign investments. The Double tax avoidance agreement between India and US prevents taxing the same income twice. There are two taxes for your investment in the US stock market namely 1. Dividend Tax and 2. Capital Gains Tax. For a foreign investor, the US stocks dividends are taxed at flat 30% rates. However, there is no capital gains tax in the US but you're liable to pay foreign capital gains in India.

 

You would require a US brokerage account to invest directly in the US stocks and charges might be applied to open a regulator.

 

5. LIFE GOALS:

Your investment plan is determined by your life goals as it will help you to achieve the goals you have set for the future. As an investor you should ensure that your investment portfolio reflects those expectations.

 

TRADING IN THE US STOCK MARKET:

A great way to earn stable returns from the stock market is to diversify your investment portfolio across geographies. Plan for your future by gaining returns from the US stock market with the help of expert guidance from Goodwill.

 

Backed by teams of experts, Goodwill offers best strategies by conducting technical analysis to choose the best performing stocks in the market. So, don't waste your time further, open your trading account with Goodwill today and invest in the best performing stocks. Click here to open your trading account!

 

For more info, visit the official website of Goodwill or make a call on +91 80122 78000 to trade your stocks smartly and efficiently. Stay connected with Goodwill's Facebook Page and get instant live updates on your stocks.