Wondering why you should invest in the US stock market or buy stocks of US-based companies like Apple and Google?
Investing only in Indian companies might not give your portfolio the global exposure it needs to truly grow. If you are only looking to earn mediocre returns from your stock folio, you can stay content with investing in local companies, but if you desire excellent returns with truly global exposure, US stocks are the key.
If you’re in India, investing in US-based stocks can be a little trickier because there’s no option to directly buy US equities in India. However, there are multiple indirect ways to invest in US stock from India, one of which is to buy US stock tokens.
Stock tokens are cryptocurrencies that trade on a crypto exchange like
Reflection and can be purchased by anyone, anywhere in the world.
They give you exposure to international markets with the ability to buy and trade US stocks from wherever you are on the planet.
If you are wondering about investing in the US stock market, here are a number of benefits this can give you and your portfolio.
1. Access to Multinational Stocks/CompaniesYou may have heard of top global companies like Facebook, Google, Twitter, Amazon, Apple, and others, and might be using their products and be already fascinated with them.
Wouldn’t it be amazing if you could buy stocks of these companies, i.e. own a part of their growing businesses? This is what you get when investing in US stocks.
While your portfolio can do well when owning Indian businesses, the growth will be unstoppable if you had stocks of the top companies globally. Why limit yourself to the Indian stock market when you can now buy stocks of international companies like Apple and Tesla?
2. Buy a fraction of a US stockUnlike in the Indian stock market, where you have to buy a minimum of one quantity when looking to invest in a stock, you can now buy a fraction of your favorite US stocks through stock tokens.
Stock tokens are like cryptocurrencies that you can buy for the value rather than for the amount. There will still be minimum investment criteria but this will be much less than the cost of a share of popular US stock like Google. With stock tokens, you can invest in any US stock for as little as a few hundred rupees.
3. Excellent ReturnsWhen we talk about the US stock market, we are talking about some of the biggest companies in the world. The names of companies like Apple, Google, and Facebook should be sufficient to give you goosebumps. Because these companies are huge, they also can give significant returns on your investment in their stocks.
Top global IT giants are known to have produced consistently greater returns than their Indian counterparts over the years. You can benefit from this growth by investing in US stocks.
4. Benefit from US Dollar appreciationAs you may be aware, the Indian rupee is falling against the US dollar. That affects the value of your investments and whatever assets you have in the Indian currency.
On the other hand, if you had dollar-based assets such as US stocks in your folio, at least a part of your folio will be unaffected by the depreciation of the Indian Rupee. On the other hand, your portfolio will still do fine even if the rupee continues to decline against the dollar.
5. Diversify your portfolio with US stocksIf you are looking for a profitable way to diversify your portfolio, investing in US stocks is a great option because it will give you diversification as well as the scope for higher-than-standard returns of Indian stocks.
Moreover, when investing in US stocks, you do not just get exposure to the US companies but also to the stocks of many top companies in multiple countries listed on the US stock market. This is definitely the best way to diversify your funds across the growing economies of the world.
6. Exposure to new opportunities & marketsThere’s a reason why the US is called the land of opportunities. Many major companies of the world are based in the United States. This is where you can find Silicon Valley, where new tech innovations and startups are a recurring thing.
If you want to be a part of this growth, you have to start investing in US stocks. Google is just one example. There are hundreds of such major companies worldwide that you can gain access to and invest in through the US stock market.
7. The US market indexYou might be wondering how to invest in US stocks, which stocks to choose and how to ensure good returns. If so, you can check out the US market indices, which are the same as India’s Nifty and Sensex, and combine the benefits of the top companies.
The S&P 500 index, for instance, contains the top 500 global companies, including top US stocks, and is a great way to start investing in US stocks, even for those who do not know much about the US stock market.
8. Reduced volatility & riskLastly, you get the benefit of a reduction in volatility and risk when you decide to diversify your portfolio by investing in US stocks. As per historical returns and data, the US markets are less volatile and more stable as compared to the Indian stocks.
As you’ll be diversifying your funds across the stocks of multiple companies all over the world, the overall risk is reduced while you get the benefit of the best returns from diversified markets.
ConclusionIf you needed a reason to invest in US stocks, I’m sure you have found many by now. Investing in US stocks will give your portfolio exposure to a bigger and wider market, reduce risk, and can significantly increase your returns. If you are looking for the easiest way to invest in US stocks from India, check out stock tokens.