How to invest in Apple from India?
How to invest in Apple from India? This is a commonly asked question amongst Indian investors. And, why not? Apple is a Cupertino, California-based global technology business that designs, develops, and sells consumer goods, computer software, and internet services.
The iPhone smartphone, iPad tablet computer, MacBook, iPod portable media player, Apple Watch smartwatch, and Apple TV digital media player are among its hardware offerings.
The macOS and iOS operating systems, the iTunes media player, the Safari web browser, and the iLife and iWork creativity and productivity suites are all part of Apple’s consumer software.
The company’s online services include the iTunes Store, iOS App Store, Mac App Store, Apple Music, and iCloud.
Due to the dynamic leadership provided by Apple’s founders, Steve Jobs, Steve Wozniak, and Ronald Wayne, the company has experienced significant financial and marketing growth.
Apple is the most valuable corporation in the world, with revenues of $274.3 billion and a market valuation of $2.4 trillion.
The answer to the company’s progress lies in its tagline, which says, ‘Think Different. It’s no wonder it’s been able to build significant money for its investors.
There are three prime reasons why you should consider investing in Apple (APPL)
- It provides geographical diversity to your portfolio
- The depreciation of the rupee vis-a-vis the dollar is also a prime reason.
- The shares have provided stable handsome returns in history. The annualized average returns of apples are around 30.86%, which is more than anything on the plate!
Apple is one of the few stocks that should be in every investor’s portfolio. Let’s first look at some basic stuff before we proceed.
|Latest market close||$163.17|
|52-week range||116.21 – 182.94|
|Earnings per share||$6.03|
|Market Capitalization||$ 2695 billion|
|Average Volume (3m)||96,177,820|
Invest in Apple from India: 3 Ways to Invest
You can directly trade in Apple from India by registering on a US brokerage account using platforms that provide this service or through a foreign brokerage with a direct presence in India.
To start with this, you only need your PAN card and proof of address.
The ETF way
One way to invest in Apple stocks from India is through an exchange-traded fund (ETF). ETFs are a grouping of stocks and bonds traded as a single fund.
They’re comparable to mutual funds because they’ve invested in a pool of money. ETFs, on the other hand, are exchanged on the stock exchange and offer a simple and inexpensive way to gain access to a category of market or a group of companies.
Buying an ETF via a platform is one way to invest in ETFs. You can invest in the Russell 1000 growth ETF or the Vanguard S&P 500 ETF, which contains Apple as one of its top holdings.
Another option for investing in Apple stocks from India is to purchase ETFs that invest in US indices such as the S&P 500. Apple is a holding of the Motilal Oswal S&P 500 Index Fund.
You don’t need to create a US brokerage account to invest in these ETFs. However, tracking errors in these ETFs may influence your returns.
The Mutual Fund way
In this case, you will be investing in funds of funds, a domestic mutual fund that invests in a mutual fund available in the United States.
Since an investment will be in Indian rupees, there is no investment restriction. Apple is included in several mutual funds, such as the Nippon India US Equity Opportunities Fund, ICICI Prudential US Bluechip Fund, DSP US Flexible Equity, etc. but only to a minimal level.
Furthermore, this strategy may prove to be more costly. An annual expense ratio will be needed from you. The expense ratio of these funds is typically more significant, as it includes an additional expenditure levied by the core global schemes they invest in, in addition to the usual India fund administration fee.
A note of caution here is to remember to evaluate your risk profile before purchasing any investment. Directly investing in equities like Apple would be your portfolio’s more significant risk strategy.