How to invest in US Stock Market? or How to buy the shares of Google, Amazon, Apple, Twitter or Facebook etc. are some of the most common queries of investors who would like to invest in foreign stocks.
You can invest through either of the following 4 routes
1. Open Overseas Trading Account with the Domestic Brokers like ICICI Direct, Kotak Securities, Indiainfoline, Reliance Money, Religare etc. These domestic brokers have a tie-up with foreign brokers. An investor should keep in mind that you will not get margin i.e. margin trading and short selling is not allowed.
2. You can also open a trading account with Foreign Brokers like Charles Schwab, Interactive Brokers etc. Before opening a trading account, you should compare the brokerages and currency conversion charges.
3. You can invest through international mutual funds like Franklin US Opportunities Fund, ICICI US Bluechip Equity Fund, DSP Blackrock, US Flexible, Equity Fund etc.
4. You can also invest through ETF like Motilal Oswal NASDAQ 100 ETF.
You should understand the risks involved like currency movement, the stock analysis is also important as you should understand the local factors and capital gain tax liability.
You should also check the difference between indices like Dow Jones Industrial Average, S&P 500 and NASDAQ.
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