There are many mutual funds invest in Indian companies. There is different kinds 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 US stock markets from India and Can we invest in stocks of US based companies from India.
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.
Can we invest in stocks of US based companies from India:
Yes, We can invest in US stock market by mutual funds. US based mutual funds allow to invest in US market from India with flexible SIP option. We can invest monthly 500 rupees in US market to diversify our investment.
HOW TO INVEST IN US 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
3. Motilal Oswal Nasdaq 100 Fund Of Fund Growth Direct Plan
4. Motilal Oswal S&P 500 Index 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 20% and 1 year return of the fund is 19%. 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 1.57% is high compare to other mutual funds. But it gives option to invest in US stock exchange.
3 years return : 20%
1 year return : 19%
Expense Ratio : 1.57%
Invested in 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 21% and 1 year return of the fund is 23%. 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 1.53%. Low expense ratio makes this fund attractive in this sector.
3 years return : 21%
1 year return : 23%
Expense Ratio : 1.53%
Invested in US equities such as Microsoft, Amazon, MasterCard, Visa and Facebook
Motilal Oswal Nasdaq 100 Fund Of Fund Growth Direct Plan:
The Nasdaq 100 Index is a basket of the 100 largest, most actively traded U.S companies listed on the Nasdaq stock exchange. The index includes companies from various industries except for the financial industry, like commercial and investment banks. The investment objective of this fund is to seek returns by investing in units of Motilal Oswal Nasdaq 100 ETF. Nasdaq 100 includes Adobe, Amazon, Apple, Cisco, Citrix, Ebay, Facebook, Intuit, Microsoft, starbucks and many more. 1 year return of the fund is 52% and expense ratio 0.1%. Since it is index fund(no active fund manager), it has very low expense ratio and attractive for long term investment in US market.
1 year return : 52%
Expense Ratio : 0.1%
Invested in US equities such as Microsoft, Amazon, Facebook, Ebay and Cisco
Motilal Oswal S&P 500 Index Growth Direct Plan:
The S&P 500 is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. This fund invests in S&P 500 index in US market. S&P 500 includes Visa, Salesforce, Netflix, Intel, Walt Disney and many more. Expense ratio of the fund is 0.5% and it overall return is 20% for last 6 months.
Overall return : 20%
Expense ratio : 0.5%
Invested in US equities such as Walt Disney, Intel, Salesforce, Visa and many more.
To start your investment login to any one of mutual fund aggregator portal and select the fund to start your investment.
You can invest 10% – 20% of your monthly SIP in US funds
As of today(December 30, 2020) compare to nifty index returns, these funds give better returns. Invest in these funds to diversify your investments in US stock market. You can start with monthly 100 rupees. You can invest 10% – 20% of your monthly SIP in these mutual funds for diversification. Happy Investing 🙂
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