Global Investing

Global Investing allows diversification beyond domestic markets, offering exposure to international companies and industries not available locally. It can potentially enhance portfolio resilience and capture growth opportunities from global economic trends.

Investors can invest in US equities (stocks of US companies) directly through global brokerage accounts or indirectly through global mutual funds and ETFs that focus on international markets, including major tech giants like Google, Netflix, Microsoft, Facebook, Amazon, and Tesla.

Indian investors can invest in US equities and ETFs through authorized global brokerage platforms (IIFL Securities) that offer access to international markets. This typically involves opening an international trading account with IIFL Securities and complying with regulatory requirements.

Benefits include diversification across geographies and industries, exposure to leading global companies and sectors (such as technology and consumer goods), potential for higher returns from growth opportunities in developed markets, and hedging against country-specific risks.

Risks include currency fluctuations (exchange rate risk), geopolitical uncertainties, differences in regulatory frameworks and tax implications, market volatility, and the potential for unfamiliar economic cycles and trends in foreign markets.

Investments in US equities and ETFs are protected by stringent regulatory standards and transparent governance practices of US financial markets. Investors benefit from investor protection laws, regulatory oversight, and disclosure requirements.

Indian investors need to comply with tax regulations applicable to foreign investments, including capital gains tax on profits earned from selling US equities or ETFs. Tax treaties between India and the US may also impact tax liability.