If you have already learned a lot about the stock market of India, then you must be eager to level up your game. Right? Well, we all want to invest in big companies like Google, Apple, and Microsoft because we know that these will likely perform even better in the future. And now more and more companies are coming up in the U.S. market because of the artificial intelligence revolution. That means it is the right time to jump into action and secure some stocks in the upcoming players in the game. Correct? But the thing is, you can’t simply hop onto a website or app and buy some shares of Google or Apple, it doesn’t work like that. And if you wanna know why, then we want to let you know that you are at the right place for that. Here we will be going over all the things you need to know if you are searching for how to invest in Nasdaq from India in 2023. So yeah, without further ado, let’s get down to it then.
Why Put Your Money in Nasdaq In The First Place?
Before we get into the nitty-gritty of how to do it, let’s talk about why putting your bucks in Nasdaq is kinda like hitting the jackpot.
- Nasdaq is like the cool kids’ table but for tech companies. We’re talking about Apple, Amazon, Microsoft, the big players. These companies are blowing up, making people who invested in them pretty darn happy with the money they’re making.
- So, you’ve got some money in Indian stocks? Cool, but you don’t wanna put all your eggs in one basket, right? Investing in Nasdaq gives you a taste of different parts of the world and industries, helping you dodge those risky vibes you get from sticking to just one market.
- Imagine getting a VIP pass to hang with the rock stars of tech. That’s what you’re doing when you put money in Nasdaq. These are the companies shaping the future, and owning a piece of that action? Yeah, that’s pretty sweet for your money pile.
Also read: How To Invest 25 Lakhs for Monthly Income in India
Regulatory Framework
Alright, so before you go throwing your money at stocks or whatever, it’s a good idea to get the lowdown on the rules and regulations.
RBI’s Liberalized Remittance Scheme (LRS): The Reserve Bank of India (RBI, if you’re into acronyms) has this thing called the Liberalized Remittance Scheme (LRS for short). What does it mean? Well, if you’re living in India, you can send up to $250,000 abroad each year to invest in stuff. So, if you’re eyeing some foreign goodies, this could be your ticket!
Overseas Direct Investment (ODI) vs Overseas Portfolio Investments (OPI): Now, there are two main ways to invest your hard-earned cash overseas. One is Overseas Direct Investment, that’s like buying a piece of a company. The other is Overseas Portfolio Investments, this one’s more like playing the stock market. Pick your adventure, you know?
New Framework and Reporting Requirements: They’ve gone and changed some of the rules to make things easier for us. It’s not the bureaucratic maze it used to be, now there’s less paperwork and fewer reports to fill out for most kinds of investments.
Types Of Investment Or Investment Strategies
We get it, Wall Street sounds cool and all, but where do you even start? Chill, we got your back. Here are some ways you can get in on the action.
1. Direct Investment
- Opening a Foreign Trading Account with an Indian Broker: Got an account with HDFC Securities, ICICI Direct, or Kotak Securities? Congrats! You’re one step closer. These guys let you trade U.S. stocks almost like you’re buying stuff from Flipkart, easy-peasy!
- Opening a Foreign Trading Account with a Foreign Broker: Go with someone like TD Ameritrade or Charles Schwab. Why? More stocks to choose from and cooler research tools.
2. Indirect Investment
- Mutual Funds: If you’re more of a “set it and forget it” kinda person, look into Indian mutual funds that target U.S. stocks. A pro is handling all the nitty-gritty for you.
- Exchange-Traded Funds (ETFs): Exchange-Traded Funds are like the budget-friendly version of stocks. You get a little taste of a lot of different U.S. companies, and they’re easy to buy and sell.
- Mobile Apps: Apps like Webull and Stockal are your best bet for this. Easy to use, right from your phone. Go with these apps and simply swipe right on some hot U.S. stocks!
3. Investment through IFSC (GIFT City in Gujarat)
Ever heard of GIFT City in Gujarat? They’ve got an international stock exchange. Yep, you can invest in U.S. stocks without even leaving the country.
4. Other Special Cases
Maybe your old aunt, uncle, grandfather, or any other relative left you some Apple stocks. Sounds cool, right? That way, you’re an international investor now. Or it could be that you worked your butt off for a foreign company? You might get shares as a pat on the back.
Step-by-Step Guide to Investing in Nasdaq
So, you are finally ready to invest in the Nasdaq all the way from India, huh? That’s pretty cool! Don’t worry, it’s not as complicated as it sounds. Let’s break it down step-by-step, shall we?
- Opening an Overseas Trading Account: First off, you gotta pick a broker. This is basically the company that lets you buy and sell stocks. Once you pick one, sign up and go through their “getting to know you” process, yeah, that’s KYC or Know Your Customer for you. It’s like an online handshake so they know you’re legit.
- Selecting Stocks Listed on Nasdaq: Alright, so your account is good to go. Now comes the fun part, picking the stocks you wanna buy! Your trading platform should have some handy tools to help you decide. It’s kinda like shopping, but for pieces of companies instead of, you know, shoes or gadgets. Use those tools to pick winners!
- Executing a Trade: You’ve picked your stocks, and now you’re ready to own a piece of the pie. Head over to your trading platform and place your buy (or sell) orders. It’s a bit like adding stuff to your online shopping cart, but here you’re adding stocks!
Conclusion
And there you have it! You’re now on your way to becoming a Nasdaq investor from India. Easy peasy, right? Just remember, the stock market’s a bit like a roller coaster, ups and downs are part of the game. So yeah, just strap in and enjoy the ride!
Anantha Nageswaran is the chief editor and writer at TheBusinessBlaze.com. He specialises in business, finance, insurance, loan investment topics. With a strong background in business-finance and a passion for demystifying complex concepts, Anantha brings a unique perspective to his writing.
