Chennai, NFAPost: Now, investing in the US markets is as easy as investing in Indian markets. HDFC securities on Wednesday announced its partnership with Stockal to introduce GlobalInvesting.in for its customers. Indian investors can buy or sell shares of companies like Apple, Google, JP Morgan, Tesla and more; or invest in thematic ETFs (exchange-traded fund) from Robotics to Pharma to Energy.
Historically, diversification meant buying properties, investing in gold and creating fixed deposits. Over the past decade, with the increasing number of demat accounts, Indian investors are moving towards creating a balanced portfolio – parking money in direct equities and mutual funds.
With a considerable amount of Indian populace settled abroad, remittances in and out of the country have also increased. However, individual Indians have sent over $35billion overseas (via RBI’s LRS) since 2015 where most of this money was ‘spent’ rather than being invested. This behaviour can be directly attributed to the fact that Indian investors are constrained to local markets as investing in global markets involves expenses and cumbersome processes, enabling only Ultra-HNIs and institutions to benefit from cross border investing, the company said in a release.
HDFC securities has introduced global investing to its customers, wherein, they can make and manage investments in the US financial markets. Multiple Indian bank relationships have been created on the platform to ease the process of LRS and reduce forex load on investors looking to invest outside of India, the release added.
Through investment diversification in a developed market, one can expect to be slightly insulated from India-specific shocks (political shocks, economic, rupee crisis). Being an extremely well-regulated market with complete transparency and stringent disclosure protocols, US markets can easily find a sweet spot in the Indian portfolio content, it pointed out.
Are you wondering why one should invest in the US market when Indian markets give good returns? Experts point out that the US market is mature, transparent and well-governed market. Great exposure to hi-tech and futuristic themes that could move the world forward over the next 10-20 years. Also, good USD exposure for currency hedge while INR-USD adjusted returns are comparable to Indian market returns with lower volatility.
Apart from equities, there are more than 9,000 mutual funds and 1,700 ETFs available to invest. HDFC securities has also partnered with DriveWealth LLC, a modern brokerage and clearing services firm with fintech roots.
Nandkishore Purohit, Head – Digital Strategy and Analytics, HDFC securities said, “With our partnership with Stockal & Drive Wealth, it is literally a case of ‘East meeting the West’ – where the best of both the markets can be enjoyed by Indian investors. While portfolio diversification is one of the fundamental survival tricks in any market, with GlobalInvesting.in, we are looking to give our investors the extra edge through international investing opportunities. The entire process is digital and paperless.”