The US stock market is open to investments from Indian investors. Beyond investing in Indian stocks and financial instruments like the Sensex or the Nifty 50, Indian investors can diversify their portfolios by buying shares of S&P 500, Dow Jones, Nasdaq, or other US-listed companies.
Indian investors are allowed to purchase US equities or ETFs through the RBI’s Liberalized Remittance Scheme (LRS) by using the purpose code S0001. When it comes to investing, one of the subjects that are commonly discussed is diversification. Even though it often refers to distributing your investments across various asset classes, geographic variety is a feature that is crucial to consider.
Yields higher than in India
The US stock market has consistently outpaced the Indian market over the past ten years. If we contrast the BSE Sensex results with those of the US DOW Jones Index. Over this period, the DOW returned 196% while the SENSEX returned 150%. (note: we picked the DOW index rather than the S&P 500 index because the DOW is more similar in a number of constituents to the Sensex; both have 30 companies).
Is It Possible For Indians To Invest In US Stock?
Anyone can buy stock in the US stock market through the RBI’s LRS, or Liberalized Remittance Scheme. Each resident of India is allowed to send up to $250,000 for investments annually under this programme.
Is It Safe To Invest in US Stocks?
The Securities Investor Protection Act (SIPA) and the Securities Investor Protection Corporation (SIPC) provide protection for stock market investments in the US. SIPC was established as a non-profit membership corporation under the SIPA.
Conclusion
Many of the largest blue-chip companies are listed on the US stock markets’ bourses, allowing investors access to multi-trillion dollar companies like Apple, Google, Microsoft, and Tesla, among others. Although India has its own blue-chip stocks like Reliance, TCS, and Infosys, the US businesses are a much more compelling alternative due to their sheer scale.
The benchmark Sensex and Nifty50 indices are substantially smaller than the US markets.
You can look at firms from China, Japan, and Europe on US stock exchanges in addition to those like Tesla, Google, and Apple, which are technologically superior to the majority of other companies around the world in their respective fields
