Google, Amazon, Facebook, Apple users: here’s how to own these stocks listed on the US stock exchange
To a large extent, our digital lives have been taken over by tech companies. From Apple, Amazon, Facebook to Netflix to the ubiquitous search engine Google, we are slowly hanging onto their products and services across the country. But, as an investor in the Indian stock market, have you ever thought about owning the shares of these global giants?
“World leaders such as Facebook, Google, Netflix, Apple, etc. have users all over the world, including India. As a client of a doing well, there is a natural urge to want to include them in your portfolio and benefit from their growth, ”says Prateek Mehta, Co-Founder and Commercial Director of Scripbox.
In fact, there are countless international brands that we use in India, but not all of them could be listed on NSE or BSE. Certainly, the idea of investing in international companies must have crossed your mind, but the ways and means of investing in US stocks could have been a deterrent.
In recent times, more and more Indian investors are seizing the opportunities available in the US markets. “Investing in US stocks has been all the rage recently and with good reason,” says Prateek. Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX), and Google (GOOGL) shares are collectively referred to as FAANG shares.
Remember that the US Fed’s liquidity program to tackle economic hardships in 2020 and the work-from-home environment have an important role to play in global asset prices. The Fed should continue to take action to help get the economy back in shape. And, with the US economy on the right track, US stocks should be the main runners in the next bull run.
On top of that, the reason for geographically diversifying your portfolio into global stocks is a strong enough reason to bring stability and a high risk-adjusted return to your portfolio.
If you are looking to invest overseas, there are international brokerage platforms that can give you access to the US stock market. Once you open a foreign trading account, stocks and ETFs listed on major US indices such as the Nasdaq, DOW 30 or S&P 500 will be just a click away. “We recently partnered with Stockal, a global investment platform, to offer US equities to our clients. We used to offer mutual funds based on US stocks as a solution. However, with this new partnership, users can easily invest from their Scripbox accounts in stocks of major global companies listed on the US Stock Exchange, as well as index ETFs, ”Prateek informs.
But, is it too complicated and complex to begin with? “Streamlined regulatory standards have allowed investors to seek diversification into mutual funds and international equities for their wealth diversification needs. Companies like Stockal have made the process even easier, guiding customers on KYC concerns to providing customer service in local (Indian) time zones. For us at Scripbox, as a complete wealth management service, our role has been to collaborate with our clients for their wealth creation needs, and through our partnership with Stockal, we are able to bring them this avenue of ‘additional investment,’ Prateek said.
Jumping on US stocks has to be a big deal. Allocating a portion to US stocks can help you diversify your portfolio. Adding world leaders in their respective industries to your stock portfolio may be something you don’t want to miss out on. You can start with individual large-cap stocks or with ETFs that track the Nasdaq or S&P 500 indices. Whether you are a trader or a long-term investor, the opportunities to make money are plentiful in the stock market. American.
However, as with any investment in the stock market, there are risks inherent in investing in US stocks. “While investing in international markets has a number of advantages, such as portfolio diversification and superior returns, there is also an element of risk. A good wealth manager can advise you on whether to invest in international stocks for your portfolio, ”adds Prateek.