In the past few years, there has been a significant rise in the number of trading applications. An increasing number of people depend on trading apps to manage their portfolios. However, there are only a few applications that allow their users to invest in US stocks from India.
Indians have come a long way from being cautious to actively participating in the markets, yet still, are wary of entering foreign markets. However, we’ve heard the saying, “Don’t put all your eggs in one basket”, which implies that diversification is crucial to protect one’s portfolio in times of market uncertainties. This article will discuss why it is important not to put all your eggs in one market.
Foreign markets can allow investors to explore a wide range of industries and businesses. A key advantage an investor stands to gain by participating in foreign markets is protection against market and currency fluctuations. For example, the USD is appreciating by 3-4% annually, and if an investor who had invested in US stocks and ETFs could have benefited significantly against the depreciating Indian currency. Apart from that, investing outside of one’s home market gives an investor access to new knowledge, including major trends, about the country they are investing in. This can help the investor leverage these consumer or business trends and insights, enabling them to deploy this newfound information while investing back at home.
US markets are one of the most stable and diversified economies in the world. Along with being home to some of the world’s largest companies, the US is the global hub for innovation. Recently, Nvidia made headlines for being the world’s most valuable company, with a valuation of more than $3 trillion. Just two years back, Nvidia’s total market capitalization was just over $300 billion, and now it has grown by 1000%.
Until a few years back, investing in the US markets was a distant dream for many Indian investors. But today, with apps like Appreciate that allow Indians to seamlessly enter the US markets and diversify their portfolio, this has changed.
Investing in US companies is as easy as investing in any Indian company. You just have to open an account, complete the identification formalities (KYC), and get your US trading account. You can easily start investing in your favourite companies like Nvidia, Apple, or Microsoft and become a part of their growth story. With Appreciate’s fractional investment option, investors can begin investing in these companies with just ₹1.
Investing in foreign markets like the US is a great way to enhance the potential of one’s portfolio. But as investors one should exercise careful due diligence, before entering into any foreign markets. Unlike other countries, the US offers better security to the investors. Market regulators such as the SEC make sure that investor interests are protected. An investor portfolio in US is protected up to $500,000 by SIPC insurance when they invest through apps like Appreciate.
With reports for each company combined with expert analysis, a large part of the research is already available on today’s stock broking apps. With the fractional investing option and low fees and brokerage, the burden of capital for investors comes down significantly. Finally, participating in foreign markets like the US allows investors to break through potential thresholds in their home market and expand their wealth globally.
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