4 Ways to invest in international equities: Through Stock brokers, International exchange, Mutual funds

There are different ways to invest in international stocks. Here are some options available to you.

4 Ways to invest in international equities

Some globally renowned brands - Amazon, Alibaba, Saudi Aramco, Netflix and the like - are listed on international markets. If you want to invest in the stocks of these market leaders, you need to diversify your portfolio internationally. International or global investing is also beneficial as it adds diversification and helps you benefit from the growth of international stocks.

But, how to invest in foreign stocks? In India, investment in foreign countries is quite simple. You can invest in the foreign stock market in one of the following ways:

1. Through your stockbroker

Many stockbrokers allow their customers to open an international trading account with them. You can open an international trading account with such brokers and directly invest in foreign stocks.

2. Through an international stockbroker

You can open an account with an international stockbroker and invest in international equities. However, you might be required to maintain a minimum deposit with such brokers for investing in stocks.

Related: Top Performing International Mutual Funds To Invest From India, Global Funds, US And China Equity Funds

3. Through an international exchange

The IFSC at Gujarat’s GIFT city has two international exchanges - NSE International and India INX. You can invest in international stocks listed on these stock market exchanges and trade in them.

4. Through mutual funds

There are Indian mutual funds investing in foreign stocks through international ETFs and feeder funds. You can choose an ETF that invests in international indices or go for a Fund of Fund (FoF), wherein the mutual fund scheme invests in a mutual fund listed in another country. Both these options give you the benefit of a diversified portfolio. Rather than investing in one stock, you can invest in multiple stocks through mutual fund portfolios. The investment is affordable as you can start investing with as little as Rs 500 if you choose the SIP mode of investment.

Moreover, these days, there are mobile applications that help you with investing in international equities. All you need is your smartphone and an active internet connection. Once you register on these apps, you can start your investment journey.

Related: Investing In International Equity Mutual Funds - Is It For You?

Do bear in mind that international investing has its own set of risks. Your investment will be impacted by the movement in the global economies, exchange rate fluctuations, international policies, etc. And if you choose to invest directly in stocks through Indian or international stockbrokers, you will need to have deep pockets since leading foreign companies have high market values.

So, understand the risks involved and then invest in international equities. Choose an investment mode you like and diversify your portfolio with international exposure.

Some globally renowned brands - Amazon, Alibaba, Saudi Aramco, Netflix and the like - are listed on international markets. If you want to invest in the stocks of these market leaders, you need to diversify your portfolio internationally. International or global investing is also beneficial as it adds diversification and helps you benefit from the growth of international stocks.

But, how to invest in foreign stocks? In India, investment in foreign countries is quite simple. You can invest in the foreign stock market in one of the following ways:

1. Through your stockbroker

Many stockbrokers allow their customers to open an international trading account with them. You can open an international trading account with such brokers and directly invest in foreign stocks.

2. Through an international stockbroker

You can open an account with an international stockbroker and invest in international equities. However, you might be required to maintain a minimum deposit with such brokers for investing in stocks.

Related: Top Performing International Mutual Funds To Invest From India, Global Funds, US And China Equity Funds

3. Through an international exchange

The IFSC at Gujarat’s GIFT city has two international exchanges - NSE International and India INX. You can invest in international stocks listed on these stock market exchanges and trade in them.

4. Through mutual funds

There are Indian mutual funds investing in foreign stocks through international ETFs and feeder funds. You can choose an ETF that invests in international indices or go for a Fund of Fund (FoF), wherein the mutual fund scheme invests in a mutual fund listed in another country. Both these options give you the benefit of a diversified portfolio. Rather than investing in one stock, you can invest in multiple stocks through mutual fund portfolios. The investment is affordable as you can start investing with as little as Rs 500 if you choose the SIP mode of investment.

Moreover, these days, there are mobile applications that help you with investing in international equities. All you need is your smartphone and an active internet connection. Once you register on these apps, you can start your investment journey.

Related: Investing In International Equity Mutual Funds - Is It For You?

Do bear in mind that international investing has its own set of risks. Your investment will be impacted by the movement in the global economies, exchange rate fluctuations, international policies, etc. And if you choose to invest directly in stocks through Indian or international stockbrokers, you will need to have deep pockets since leading foreign companies have high market values.

So, understand the risks involved and then invest in international equities. Choose an investment mode you like and diversify your portfolio with international exposure.

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