How to invest in Foreign Equities

How to Invest in Foreign companies Share ?

Apple, Microsoft, Amazon, Intel,  Facebook , Johnson & Johnson, JP morgan chase , Alphabet inc, Tesla, Nividia , Walt Disney, Verizon, Adobe , Coca Cola 

These are the MNC companies were every one dream to get a job . But why a job ?? you can now buy a portion of all these and many other MNC companies shares holding and reap a good profit .

There are three basic ways to buy holdings in foreign equities :

1. Open an overseas account with Indian brokerage: This is the easiest way out for any Indian retail investor, as many full-service fund houses provide the access to invest in foreign stocks. Like 5paisa, Vested Finance,  ICICI Direct, Reliance Money, Kotak Securities and various others.

However, it is important to remember that this service will have some restrictions depending on brokerages. Based on the firm, you might have some restrictions on certain investment vehicles or the number of trades that you can make, etc.

2. Open an account with foreign brokerages: Stock brokers like Charles Schwab International Account, Interactive Brokers, TD Ameritrade etc. give access to Indian investors to open an account and trade in US securities and mutual funds. Before investing, make sure you understand the fee structure before opening an account.

However Investing through above 2 modes are very costly due to heavy fee charged for such services, Minimum deposits to keep (usually above 1 lakh ) and many other restrictions. Investing in individual stock is also very risky .

3. Best way to invest in foreign equities  is to buy Indian mutual funds/ETFs with global equities: This is an indirect way of investing in global equities, also cost-efficient given that investors will not have open any account or maintain a minimum deposit.  There are many mutual funds who directly invest in foreign stocks. For example, Motilal Oswal has recently started with 'Motilal Oswal S&P500 Index Fund' which invests in 500 listed companies in US (incl above companies).

Other mutual funds like ICICI Pru US Bluechip Equity, Motilal Oswal NASDAQ 100 ETF, Edelweiss Greater China Equity and various others also trade in global equities. So if you are interested in investing in these companies stock go through Mutual Fund way.

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