Namaskar doston and welcome to another insightful podcast by Angel One. Aaj jan lete hain international stocks mein invest karne ki 6 tareeke.
Mohit ka next door neighbour, Mr Sharma, kaafi samey se international stocks mein invest kar raha hai. He has earned excellent returns according to the stories he has told Mohit. Mr Sharma has been investing in the stock market for many years now - kai log usse expert bhi kehte hai. Stocks toh Sharmaji ka full time job hai.
He trades in Indian stocks and International stocks,....futures and options sometimes. He even has an account with an international broking firm and conducts his trades on a daily basis. However, he tells Mohit to try indirect investment instead, because Mohit already has a full-time job and cannot put aside time very regularly. And because very often Mohit looks at him like he is speaking Urdu. Or Greek. Mohit also hears from his colleague Ishaan that there is now an easy way for amateurs to invest in US stocks. Ishaan uses the Angel One app and trades directly.
Toh kya hai direct aur indirect investment in international stocks. How are the two different?
Actually international stocks mein invest karne ki at least 6 tareeke hai, 3 direct aur 3 indirect. In the past, sirf experienced investors ke liye direct investment asaan rehta tha, and amateur investors were better off going with indirect investment. Lekin, now - for amateur investors who have sufficient stock market understanding - there is the option of app-based direct investment.
Chaliye, let us explore - in detail - these 6 methods of investing in international stocks
Shuru karte hai with the 3 methods for direct investment:
Amateur investors wishing to invest directly in international stocks should be aware that direct investment is not only complicated but also more risky. Earnings ke high potential hai hi. Lekin investor khud - apne research aur predictions ke hisab se - stocks kharidte hai aur bechte hai. Not only does he need to understand and keep an eye on international stock markets at odd hours, but he must also keep constant tabs on currency rates. Currency fluctuations se investor ke earnings pe bhaari asar pad sakta hai. For example, imagine an investor who has earned USD 1000 on some trades that he conducted today, when the dollar is valued at Rs 73. The value of his earnings will be very different if the dollar were to plunge to Rs 60 apiece or to Rs 80 apiece.
Of course, high risk ke saath saath, high earnings ka bhi potential hai, when it comes to direct investment. That’s why stock market experts, like Mohit’s neighbour Mr Sharma and his colleague Ishaan, might choose one of the three direct investment methods we’re about to discuss.
Direct investment method # 1 - Open an international trading account
Some institutions such as Vested Finance offer investors the option of buying and selling international stocks.
Agar aap yeh option choose karoge yeh points dhyan mein rakhna
Aapka upper limit hai $250,000 per annum
Alag alag fund houses ke restriction on number of trades bhi alag rehte hai. Isliye zaroor check karna before opening an account.
Not all of these financial institutions offer all types of investment options. Check and reconfirm that you are going to get the investment options that you seek.
Keep an eye out on the fee you might need to pay! Ho sakta hai ki account free mein ban jata hai - there might be an offer or something, lekin annual maintenance charges, or AMC, pe dyaan rakna. AMC represents the annual fee for keeping your account active and might be heavy for an international trading account.
Direct investment method #2 - International broking firm mein account kholna is another option.
You can easily open an account with an international broking firm if you are confident and possess the financial resources. Iss option mein aapko kam restrictions hoga - you can do as many trades as you want in a day and all investment vehicles will be open - lekin fees aur fee structure bilkul dyaan se padna aur samajna. Yeh option mein bhi, you must remember some of the points mentioned under the first method. Yeh hai Aapka upper limit yeh option mein $250,000 per annum hi hai.
Verify the firm before sharing any documents and personal details
Direct investment method #3 - Just use your good old trustworthy stock broking app
If like Ishaan, you have been using the Angel One mobile app, you have the option of avoiding the complicated two options that we just discussed that have been previously used by traders and investors.
Angel One app download ke liye bilkul free hai - App store mein jaake download kar sakte ho. Is ke baad, all you need to do is click on international investing and then you can begin your investing journey. Angel One ka tie-up US-based Vested Finance ke saath hi hai toh firm verification and other such factors ka koi chinta nahi hai.
Iss option mein simplicity hi nahi, dusre bi kai benefits hai. Yeh hai:
While wiring fees, forex transmission fees and AMC might be applicable, there is no commission applicable on your trades conducted via Angel One.
Aap fractional investment bhi kar sakte ho. Kai companies - jaise ki Amazon aur Google - ke share price bahut unchi hai. Iss companies mein aap as low as USD1 ka investment dal ke apne investment dusre investors ke saath pool kar ke invest kar sakte ho, by using the Angel One app.
Support team kabhi bhi apke sahaytha ke liye ready hai
Best of all - especially for the likes of Mohit - curated, ready made portfolios ka bhi option hote hai. Angel One is branding these as ‘Vests’. Isse investor ka confusion when choosing kam rehta hai - khaas beginner investors ke liye yeh bahut acha benefit hai.
Agar Mohit ke jaise aapka koi trading app nahi hai toh Angel One app turanth download kar sakte ho. Is ke baad, thoda bahut KYC process or documents submit karne ke baad (it is a five minute process) aap 1 to 3 working days mein apna international stocks investment shuru kar sakte ho.
Ab dekhte hai the 3 methods for indirect investment in international stocks:
Indirect investment beginners ke liye zyaada suitable hai. Agar aapke liye a lot of stock market discussions sound like Greek, toh aapke liye indirect investment sahi option rahega. International currency fluctuations aur international stocks pe sar nahi phodna padtha hai lekin international stocks ka benefit mil sakta hai - with its expected share of risks, but not to the same extent as directly buying and selling international stocks.
Indirect investment method # 1 - Investing in Indian mutual funds that invest in international stocks.
Isse you get exposure to the international stocks. Exposure leads to the potential to earn or the potential to lose depending on the stock price movements. Uske saath, since you are investing in a mutual fund, aapko fund manager ka expertise bhi milta hai and the comfort ki aapka paisa dusre logon ke paise ke saath pooled hai, not to mention that the mutual fund will diversify your investment. Yeh factors se se thoda bahut risk bhi kam ho jata hai. Toh in stocks ko kaise recognize karenge? Most mutual funds that invest in international stocks will have names of other countries in the fund name; sometimes it might also be tagged ‘emerging markets’. Read the fund literature to be sure.
Indirect investment method # 2 - Invest in FoFs
FoF, which is Fund of Funds, is a category of mutual fund investments. The benefits of ultimately lowered risk are similar to those jo humne indirect investment ke pehle method mein bata diya. These funds invest in a basket of Indian and international stocks, bonds, other mutual funds and other asset classes. You could look for funds that have a heavy investment in international stocks, bonds and mutual funds.
Yeh first two options Mohit jaise beginners ke liye kaafi asaan, uncomplicated aur straightforward rahega.
Indirect investment method # 3 - Invest in ETFs ...that is exchange traded funds
ETFs mein khaas baat yeh hai ke woh mutual funds investment aur stock investment ka milaap hai. ETFs are similar to mutual funds because just like mutual funds they pool investor capital and then invest the same into various stocks, bonds and so on. However ETFs are also like stocks because they are traded on the stock market throughout the day. Agar aap internationals stocks mein indirectly invest karna chahte ho, you buy ETFs that track international indices.
Dost koi se bhi stock market investment mein invest karne se pehle, check your risk appetite. Whichever of the 6 investment methods above you choose to go with, your investment cannot ever be risk-free or predictable because the stock market is by nature unpredictable.
Always put aside money for your daily living - like for example - food, rent, outgoings, utilities, transport, fuel, children’s school fees, medical expenses and contingencies - before investing. Smart investors always diversify their investments and ensure that sufficient savings and a steady income are in place before making any risky investments. Aur ji haan, never lose sight of the fact that all stock market investments, including mutual funds, are subject to market risk. Hamesha cautiously invest karna.
Ek cheez yaad rakhe- EveryoneCanInvest. Up your financial education by checking out similar videos and podcasts, visit www.angelone.in today for more information! Vapis milenge dost, until then happy investing!