Are You Thinking About Investing In US or Other Foreign Stocks From India? Are You Needing Ideas on Trading International Market from India? In this post we’ll go through easy ways of investing in International Stock Market.
Any qualified financial professional would tell you that diversifying a portfolio is the only sure way to reduce market risk, and they would be absolutely correct in doing so for one simple reason: even in an uncertain year like 2020 (when everything could change at any moment), it is highly unlikely that all industries, sectors and countries within those nations would face detrimental conditions simultaneously – thus why limit diversification as part of sound investing practices?
Why Invest Outside India? Here is something worth remembering: the S&P 500 Index Fund has returned an annualized 10.6% since 1990; that represents a decent amount of return if you’re new to investing. In comparison, 5 year returns of NIFTY funds range around 8.39% while Motilal Oswal NASDAQ 100 Fund achieved about 17.53% over that time frame.
Countries have also come to be associated with specific products or industries – for instance Swiss watches have become ubiquitous worldwide.
Example: Silicon Valley in Silicone States stands as an epicenter for technological innovations, so it would seem strange if in 21st Century’s global economy investors cannot profit off specialization and high quality products as an investment strategy.
If that wasn’t incentive enough, consider this: US indexes tend to be less volatile to fluctuations than Indian markets due to various reasons that go beyond this discussion’s scope; but let’s talk about that instead!
How Much Can You Invest in Foreign Stocks? According to guidelines issued by the Reserve Bank of India under their Liberalized Revenue Scheme, investors may invest upto $250,000 per person annually without needing special permission and can also extend this limit in certain circumstances.
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