Most of mutual funds invest in Indian market companies. There are different kind of mutual funds such as blue-chip, nifty index, ELSS and there are many more categories of mutual funds. Mutual funds are investment instrument for wealth creation. Mutual funds has option to invest in us stocks from India. In this blog, let us discuss how to invest in international stock markets from India and invest in US stocks by mutual funds.
Why to invest in US stocks:
The US market has a 200 year track record when it comes to markets. It is a tried and tested market. The companies listed in US dominates the technology, supply chain, infrastructure and all the business. World’s largest and powerful companies are listed in stock exchange of USA. The list of Amazon, Caterpillar, Nike, Facebook, Microsoft, Visa and other leading companies are listed in US stock market.
How to invest in international stock markets :
There are few mutual funds allow to investment in US market. You can start SIP or lump-sum invest in the mutual funds to invest in US stock exchange.
1. ICICI Prudential US Blue chip Equity Growth Direct Plan
2. Nippon India US Equity Opportunities Growth Direct Plan
ICICI Prudential US Bluechip Equity Growth Direct Plan :
This fund primarily investing in equity and equity related securities of companies listed on recognized stock exchanges in the US. 3 years return of this fund is 16% and 1 year return of the fund is 11%. This fund holds Amazon, Nike, Caterpillar, Kellogg Co, Facebook and many other companies listed in US stock exchange. The only disadvantage of the fund is expense ratio. The fund expense ratio 1.79% is high compare to other mutual funds. But it gives option to invest in US stock exchange.
3 years return : 16%
1 year return : 11%
Expense Ratio : 1.79%
Companies invested : US equities such as Amazon, Nike, Caterpillar, Kellogg Co and Facebook
You can start investing with monthly 100 rupees SIP with this fund. In case your investment horizon more than 10 years, you can invest 10% of your monthly SIP in US stock exchange.
Nippon India US Equity Opportunities Growth Direct Plan:
This Nippon India US Equity Opportunities Growth primarily investing in equities listed on recognized stock exchanges in the US. 3 years return of this fund is 16% and 1 year return of the fund is 7%. This fund holds Microsoft, MasterCard, Amazon,Visa, Facebook and many other companies listed in US stock exchange. Expense ratio is low compare to other international mutual funds. Expense ratio of the fund is 0.2%. Low expense ratio makes this fund attractive in this sector.
3 years return : 16%
1 year return : 7%
Expense Ratio : 0.2%
Companies invested : US equities such as Microsoft, Amazon, MasterCard, Visa and Facebook
As of today(April 19, 2020) compare to nifty index returns, these funds give better returns. Invest in these funds to diversify your investments in Indian and international stock market. You can start with monthly 100 rupees and maximum 10% of your monthly SIP in these mutual funds. Happy Investing 🙂
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