US Election Results: As American markets spike, this is how investors from India can invest in the overseas stocks

With Donald Trump all set to take over because the 47th US President, the markets in America reacted fairly positively to the information. S&P 500 and Dow Futures hit a record high on Wednesday after the information of Trump’s victory grew to become clear. In actual fact, Indian benchmark indices Sensex and Nifty 50 additionally rose over 1 percent after the Republican nominee reclaimed Presidency.

In case you, too, wish to get an publicity to the American equities, you’ll be able to both get direct exposure by buying stocks by way of brokers right here, or else, purchase mutual funds or ETFs which spend money on the US shares or indices comparable to S&P 500.

That is what you are able to do to get publicity to US markets.

I. Investing instantly by way of dealer: There are some brokers in India who’ve a tie-up with brokers within the US. With their assist, you’ll be able to open buying and selling account within the US and begin investing within the US monetary markets. 

This type of investing mat flip to be fairly expensive since there are restrictions within the variety of trades you’ll be able to perform. It additionally entails charge of conversion of forex (from INR to USD to INR). So, one must be aware of those prices if you’re choosing this route of investing within the US markets.

II. Investing not directly by way of ETFs/ mutual funds: You should buy models of some mutual fund schemes which spend money on the US shares or benchmark index. There are some mutual funds which spend money on the abroad markets.

These embrace ICICI Prudential US Bluechip Fairness Fund, Edelweiss US Worth Fairness Offshore Fund and DSP World Allocation FoF, amongst others.

III. Investing in US mutual funds/ unit trusts: Almost about allowing Indian mutual funds spend money on abroad securities, Sebi had launched a grasp round on June 27, 2024.

As a follow-up act, Sebi launched one other round on Monday whereby it acknowledged that an Indian mutual fund is free to spend money on these abroad fund or unit trusts which have an publicity to Indian markets as long as the publicity is capped at 25 p.c. 

And until the time this restrict is breached, these funds usually are not allowed to just accept contemporary funding from Indian traders.

You will need to observe that investing in US shares is topic to the LRS (liberalised remittance scheme) restrict which is $2,50,000 in a 12 months. Moreover, if remittance exceeds the restrict of ₹7,00,000 in a 12 months, a 5 per cent Tax Collected at Source (TCS) is relevant. And taxpayers can declare this TCS again on the time of submitting of revenue tax return (ITR).