Given the huge variety of investment options available in the Indian stock market, you may believe you have all the investing options you require without even considering firms outside of India. However, entities that are not listed on the Indian stock exchanges might be valuable assets with various advantages. Take, for example, the shares of a US corporation. Going worldwide with your investments can help you earn more money by exposing your money to firms that are growing faster, such as Tesla.
You also find a method to take advantage of favourable circumstances, such as progressive and inventive leaders like Elon Mask, tax benefits, or even access to natural resources and legislation that allow an industry to flourish at a faster rate than its local counterpart. Overall, diversifying your portfolio by adding international stocks can help you avoid having the rupee determine all of your prospective market gains. If you are still not convinced and believe it is a difficult task, we’ll go through the advantages that make it a must-have for every investor in today’s environment in this blog.
The Biggest Benefits It Brings To You
- Diversification: The most obvious, yet significant, benefit of global investing is diversification. A varied portfolio is a source of stability during market instability. There is a low connection between investments when they are scattered across geographies. This means that volatility in one market is unlikely to have an impact on your other investments.
- Wide Range of Investment Options: Global investing allows you to take advantage of financial opportunities that aren’t available in your home country. Some of the world’s largest tech companies are based in developed markets like the United States, which you can’t get to if you invest in India. You can even stick to a theme or combine several places together. For example, you might like the technology market in the United States, engineering in Europe, and products in Australia. There are also various alternatives in the US and Europe if you are interested in healthcare or pharmaceuticals.
- Investment Protection: Another key advantage of global investing is the protection of investments from fraud and liquidations. In general, mature market businesses are supervised by strong standards that ensure proper corporate governance and punish market manipulation. Ordinary investors are protected against probable fraud and insider trading losses as a result of this.
- Currency Diversification: Investing in foreign markets exposes you to currency fluctuations (or depreciation). For example, over the last five years, the USD has appreciated by 3-5 percent against the INR on average. The currencies of emerging markets deteriorate over time. Domestic savings account interest rates are currently at a low of 3–4 percent on average. Portfolios have traditionally benefited from improved markets and appreciating currencies as a result of investing worldwide.
How Do You Start Your Global Investment Journey?
Global securities offer the greatest flexibility and diversification in any portfolio. It’s perfect for increasing risk-adjusted returns while reducing the impact of your country’s financial situation on your portfolio. The RKFS-India Global Account assists you in constructing a portfolio that reduces the country’s risk while simultaneously providing higher risk-adjusted returns and the security of global market assets. When you invest with us, you will receive the following benefits.
- Easy Account Opening: You can open an online RKFS-India INX Global Account in only a few clicks. Physical documentation isn’t required in any way.
- No Minimum Balance Limit: Invest as much as you want without worrying about meeting a minimum balance requirement.
- Security: All of our clients’ accounts are bankruptcy remote. In addition, the Securities and Investment Protection Council Insurance protects every customer (SIPC insurance).
- Pricing Advantage: There are three subscription options to choose from, each with its own set of brokerage rates.
- Fractional Shares: Start investing in fractional shares in the US market with small amounts of money.