By Admin 
US Stock Market Investment from India: Indian stock market is quite easy for Indian investors. But now the number of Indian investors is also increasing towards foreign investment. This process seemed quite difficult till a few years ago. But now foreign stock market has also become very easy for the people. At the same time, many people also had the misconception that only those people who have immense money can invest in the foreign stock market. However, this is completely wrong, because anyone can invest in the foreign market.
In the present times, it has become much easier for Indian investors to invest in the American stock market than before. Sitting here, you can easily invest in companies like Apple, Google and Tesla. This process has now become online, for this investors have to understand some important procedures.
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First choose investment platform
Investors can use platforms like many domestic fintech platforms or brokerage apps to invest in American stocks. Many of these platforms offer investment facilities through partnerships with American brokerage companies.
KYC and account opening is necessary
To start investing, one has to complete the KYC process with PAN card, Aadhar card and bank account information. After this the investor’s international investment account becomes active.
Money has to be sent in dollars
American shares are purchased in dollars. Under the Liberalized Remittance Scheme (LRS) of the Reserve Bank of India, any Indian citizen can send up to 2.5 lakh dollars abroad in a financial year. Investors can convert rupees into dollars from their bank account and transfer them to their investment account.
Facility to buy fractional shares also
If the price of a share is high, then instead of buying its entire share, investors can also buy a small part of it i.e. fractional share. For example, if a share of Apple is expensive, investors can start investing with $10 or even $50.
It is important to understand tax rules
Capital gains tax is applicable in India on profits from US stocks. Apart from this, tax on dividends can be deducted in America. However, due to the Double Taxation Avoidance Agreement (DTAA) between India and America, investors get relief from paying tax twice.
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take care of these things
Many people are fond of investing in the American market because it is beneficial. But there are many risks in it, investment should be done only after knowing about them. Let us explain:
- There is a lot of volatility in the American market. Especially in tech stocks, both the rise and fall can be very sharp.
- Be careful of hidden expenses. Currency conversion costs, remittance charges and platform fees can increase the cost of investing.
- It is also important to understand tax and TCS rules. While sending money abroad under LRS, one should be aware of the tax related rules.
- Emotional pressure should be avoided, because different time zones and continuous global news can become a challenge for investors.
- Do not invest just by looking at the name or trend, but before investing money in a company, it is important to understand its basic position and risks.