Investors in the Indian market are growing enthusiastic about foreign stock markets. Many people want to invest in foreign stocks. How to invest? find out
Indians are increasingly encouraged to invest in foreign stock markets. Know the details of investing in the foreign stock market.
What kind of company stocks can be bought in foreign stock markets:
Developed markets such as the United States have adopted a much more transparent and simplified approach to investing in their stock markets. An Indian can easily invest in the US stock market. There they can invest in shares of many companies, which are not available in India. For example, stocks of search engines, semiconductors, electronic gadgets, and precious metal miners can be invested.
But buying shares in dollars is not very expensive:
Fractions of shares of companies listed on the US stock market can be purchased. This makes it easier to buy shares that are overpriced. Or mutual fund units can be bought as per one's ability
Want to invest in the foreign stock market but do not know which stock to buy?
Digital many media provide news related to foreign stock market stocks. What is the financial condition of a company, how much is its cash flow etc? By reading them, you can decide which stocks to invest in.
And if there is absolutely no time for this study, then Indians can invest in mutual funds that invest in foreign stock markets. Or alternatively buy units of ETFs in foreign markets which you will not find in the Indian market. Also, you can contact any investment expert or professional firm in this regard.
How much money can be invested in the foreign stock market:
An Indian citizen can invest up to $2.5 lakh under the Liberalized Remittance Scheme (LRS) in a financial year. However, there are no specific rules regarding the minimum amount to be invested. But in some cases, the investment may have to be made according to what the brokerage firm decides. Again there are specific rules for investing in some products. They also need to be kept in mind.
What is the tax rate for investing abroad:
Indian citizens have to pay taxes on investments abroad. It will be levied on the total income of the concerned Indian. For example, if the foreign stock is held for more than 24 months, a long-term capital gains tax of 20 percent along with cess and surcharge will have to be paid as per the situation. There, gains from stocks held for less than 24 months are taxed at slab rates. Income from foreign investment should be mentioned while filing income tax returns.
