Why Indians should invest in US stocks?


What is a stock?

A stock is a colloquial phrase for any company’s ownership certificates. On the other hand, a share alludes to a certain company’s stock certificate. You become a shareholder if you possess shares of a specific corporation.

US stocks

Benefits of buying US stocks:

Entry to international businesses: All US-based businesses are represented, from the largest names in technology like Google and Apple to well-known names like Nike and Starbucks. The fact that all of these US businesses are international is another similarity. These businesses are well-known all around the world. Due to its widespread presence, the US equity market has a market capitalization of $47.32 trillion, compared to the $3.21 trillion market capitalization of India. As a result, investing in these businesses can broaden your perspective.

 Shares in Fractions: A share of Apple stock currently costs 173 dollars, or around 13,000 yen. Similar to this, one Amazon stock currently costs 3321 dollars, or almost 2.5 lakh rupees. It may be argued that US stocks are overpriced and not the most long-term of investments. You can buy fractional US equities, which is a remarkable benefit of the US stock market. Let’s say you only have 20,000. You can put $5,000 into each of your top four US corporations, and so on. Investors can spread their investments over a portfolio of businesses thanks to the feature of fractional shares.

Diversity: The stock market of a nation can be significantly impacted by factors like political unrest, elections, budget constraints, and natural calamities. Diversifying your finances is a good idea if you want to protect your investments against a sharp decline. While holding assets like gold and bonds is beneficial, purchasing US equities can diversify your portfolio and position you for possible high profits.

Financial Value: You spend dollars to buy US equities when you invest in US stocks. Right now, the dollar to rupee conversion rate is 76.13. (28th March 2022). On April 7, 2013, 1 dollar was worth 64.26 cents. When compared to the rupee during the previous five years, the US dollar has appreciated by more than 18%. By purchasing US equities, you are making an investment in the dollar’s value in addition to the stock’s value. Your investment will increase if the dollar appreciates in relation to the rupee.

Creativity: The world in which we live is constantly developing. The United States has abundant resources and draws talented minds from throughout the globe. US businesses constantly innovate to offer innovative solutions. Companies like Tesla, Meta, and Amazon have been working in a variety of fields recently to develop innovative solutions. You may join this innovation journey by funding such US businesses.

Conclusion: various factors encourage a person to invest in US stocks, depending on their life goals and their preferences in general. US stock market, no doubt needs to be studied before investing but is quite beneficial if done the right way with a right strategy in mind.