Investing in foreign stocks is a good way to diversify your portfolio. There are many giant companies based in foreign countries, and you can invest in these shares to balance your portfolio’s risk and take advantage of the lucrative opportunities in international markets. Many Indian stockbrokers also have tie-ups with foreign brokers. These brokers will be able to help you open an overseas trading account with them.
The first step in investing in international stock markets is to open an account with a foreign or domestic stockbroker. Many domestic stockbrokers work with global stockbrokers and act as intermediaries for their investors. To open a trading account, investors need to submit a few documents.
Investing in foreign stocks can offer higher returns than in domestic markets, but there are also a number of disadvantages. The first is that you can’t invest a large amount in US equities, and foreign brokerages charge higher fees. Also, you’ll be required to meet certain requirements set by the Reserve Bank of India.
Another important step in investing in international stock markets is to find the right platform. In India, you can choose a mutual fund that invests overseas. This is especially helpful if you’re looking to diversify your portfolio. You can also invest in a fund that invests in international ETFs. Most funds don’t require an overseas trading account, which means that you can invest in ETFs without opening a separate account.
