Global brands significantly impact our daily lives, with their products highly sought after by Indian consumers. As India’s consumption-driven economy grows, the demand for these international brands has surged, making Indian consumers vital for multinational companies.

Have you considered becoming a shareholder in these influential brands? Investing in their stocks allows you to participate in their growth and capitalise on global opportunities. 

Fortunately, investing in international companies has never been easier, and you can explore multiple avenues if you open Demat account, including the use of a zero brokerage Demat app for cost-effective trading options. Here are four simple methods to invest in international stocks.

1. Direct Investment through a Demat Account

To trade in Indian stocks, you typically need to open Demat account with registered depository participants (DPs). However, while a regular Demat account allows you to hold and manage your Indian investments, it doesn’t provide direct access to international stocks. Most DPs focus solely on Indian equities, bonds and mutual funds.

Nonetheless, several brokerage firms, including Kotak Securities, HDFC Securities and ICICI Direct, enable you to invest in international stocks via partnerships with foreign brokers. By opening an overseas trading account with these firms, you can gain access to global markets. After setting up your account, you can transfer funds to your overseas Demat account and start investing in U.S. stocks and other international equities.

2. Mutual Fund Route

If you prefer a more hands-off approach, consider investing in international stocks through mutual funds. Many Indian fund houses offer mutual funds specifically designed to invest in global companies. These funds pool money from multiple investors to invest in a diversified portfolio of international stocks, reducing the risks associated with individual stock picking.

Investing in mutual funds also means that you don’t have to worry about the complexities of managing an overseas trading account or navigating forex regulations. Instead, you can invest in a single fund and gain exposure to a basket of international equities, making it a hassle-free option for retail investors.

3. Exchange-Traded Funds (ETFs)

Another viable option for gaining exposure to international markets is through exchange-traded funds (ETFs). Similar to mutual funds, ETFs pool investors’ money to invest in a diversified portfolio of assets. However, they trade on stock exchanges like individual stocks. This means you can buy and sell ETF shares throughout the trading day, providing greater flexibility.

Many ETFs focus on international stocks, allowing you to invest in a broad range of companies across different sectors and geographies. Using a zero brokerage Demat app, you can efficiently invest in these ETFs without incurring hefty fees, optimising your investment potential.

4. Opening a Foreign Brokerage Account

For those keen on a more direct approach to investing in U.S. stocks, you can also open Demat account with a foreign broker, such as Interactive Brokers, TD Ameritrade or Charles Schwab. Interestingly, you do not need a U.S. address or citizenship to open a trading account with these firms.

While this route gives you direct access to the U.S. stock market, it comes with the responsibility of managing your investments in a foreign currency and adhering to regulatory requirements. As an Indian citizen, you’re allowed to invest up to $250,000 annually under the RBI’s Liberalized Remittance Scheme, covering all international investments, not just stocks. Make sure to convert your Indian rupees into U.S. dollars before trading.

Conclusion

As you explore these avenues for investing in international stocks, remember that each option has its advantages and drawbacks. Whether you choose to open Demat account with an Indian brokerage, invest through mutual funds or ETFs or opt for a foreign brokerage account, being informed will empower you to make the right investment decisions.

With the continued growth of global brands and the increasing accessibility of international investments, now is an opportune time to diversify your portfolio and tap into the potential of global markets. As you venture into international investments, consider utilising a zero brokerage Demat app to enhance your returns and minimise costs. Your journey into the world of international investing could yield substantial benefits, allowing you to participate in the growth of iconic global companies.

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