It totally makes sense to bet on the world’s largest economy. Before you invest in U.S stocks you should know some information about it.
Investing by your own can be hectic as you will have to maintained the track record of companies which are less known.
Also, there is 25% tax on dividend. Thankfully there is no long-term tax gain. Enough of disadvantages, let’s talk about benefits of investing in US stock market.
1. Get Exposure to Global Stock
You must have heard well-known brands like Facebook, Amazon, Netflix, Google, popularly known as FAANG companies.
They are dominating around the globe with their latest technology and strong brand presence.
Most of us watches web series of Netflix, order on Amazon, google whatever doubt we have.
Due to investing in companies which you and me are using on the daily basis makes investing comfortable, effortless and less risky.
2. Diversify Your Portfolio
Diversifying in too many sectors but only in single country cannot be well diversified portfolio.
When you invest in only one territory then there is risk, but if you are investing in different territories then the risk decreases substantially.
For example, if there is war between India and China so for some Indian markets may remain under pressure.
In such case the diversification can greatly help to balance the losses.
3. Depreciation of Rupee vs Dollar.
Historical data states that the Indian rupee is consistently dropping against dollar.
You can take benefit of dollar appreciation over rupee. In 1947 one dollar is equal to 1 rupee.
Today one dollar is close to the 75 rupees. In 1947 if you just invest in us market and even if you don’t get any returns then also you will make 75 times the money.
4. Mature and Less Risky Market
No doubt it is most mature market. As it one of the oldest markets which makes It more reliable stock market in the world.
Avoiding to invest in the growth of superpower can turned to be the poor decision. Warren Buffet also advised investors not to bet against America.
Too many people have created massive wealth through Stock market and the biggest living example is Warren Buffet.
He made his most of wealth through Investing. Unfortunately, there is no such name from Indian stock market.
5.Can Buy Fractional Shares
The best part about investing in US is that we can buy the shares in the fraction.
For example, the amazon stock is trading at 2 lakh rupees which can be difficult for people like us to buy it.
But surprisingly We can buy fraction part of share of even 100 rupees.
Buying fractional shares helps us to diversify the portfolio well as the popular companies have high stock prices. It is very economical for common investors.
Before investing in US stock, one should know that Indian citizen can invest only up to $2,50,000 per year under the scheme of LRS.
Do not forget to tell me whether you will invest in US stock market or not.