How to invest in US stocks on EduFund?
In today’s age, we as Indian consumers, use Google, Microsoft, Starbucks, Netflix, and Spotify in our day-to-day lives.
Some of the world’s largest companies are based out of the US. These are high-growth companies listed on the US stock exchange.
Why should you invest in US stocks?
Here is why you should invest in US stocks:
- Exposure to global companies: By investing in US stocks, you get exposure from Tech Giants like Google and Apple to the most prominent brands like Nike, Starbucks, etc. These companies have a global presence and are known worldwide. Investing in such companies helps you expand your portfolio.
- Fractional shares: Currently, the cost of one Netflix share is $224, roughly ₹18,216.95. This makes investing in US stocks very expensive if one buys whole shares. But fear not! US stock offers the concept of investing in fractional shares. In case you have ₹10,000, you can invest the whole amount across different shares fractionally instead of buying whole shares.
- Portfolio diversification: Many global factors, like geo-political tensions, budgets, oil price changes, etc., have a significant impact on any country’s economy and market. By having optimized diversification, your portfolio can absorb market volatility efficiently.
- Currency hedging: The US Dollar has been on the rise for the past five years. By investing solely in the Indian market, you are missing out on the opportunity of a USD rise. While investing in US stocks, you are purchasing US Dollars. When these investments are held for long investment horizons, your investment value increases in terms of currency with an increase in the USD rates.
Steps to create your US Account on the EduFund App
- Open the EduFund App or the EduFund website.
- Click on the top left corner where your initial is mentioned.
- Then select the US Account set up option. You’ll be able to view the charges and pricing page, where we do not charge you anything for the US ETF account creation. Kindly go through the other charges carefully.
- Click on Continue. It will ask you to fill in your personal details, attach your ID (PAN) and address proof (Aadhar), Bank details, etc.
- Agree to the terms and conditions and disclaimers after reading it, and attest that the information provided by you is correct.
- Then click on Create Investment Account.
Once the verification process is completed, your US account will be created
Steps to add funds to your US ETF account
All residents can transmit up to $250,000 per financial year (April – March) for any permissible current or capital account transaction, or a combination of both, under the Liberalized Remittance Scheme (LRS).
ICICI, HDFC, IDFC, and Kotak bank account customers can complete the LRS process online by logging in and following the fund transfer instructions.
You can choose one of two alternatives when transferring funds using LRS on our platform.
- Online transfer – via your net banking
- Offline transfer – Visit the bank and submit the A2 form
How to add funds?
- Log in to the app and click on Add Money for detailed instructions to add funds from your domestic bank account to your US ETF account.
- Online mode: –
- Proceed to your bank’s Net banking and log in with your credentials.
- Go to Fund Transfer Tab and select Add a Beneficiary. Select the Remit now option.
- Add the beneficiary details (you will find this on the app itself).
- Click on Continue and select Confirm to add the Beneficiary.
- Complete the OTP Verification to complete the adding of the Beneficiary.
- Depending on the bank, the Beneficiary takes around 30-45 mins to be added.
- Once the Beneficiary is added, select the Fund Transfer tab and click on Go in Remit Now.
- Then choose your account and select the Beneficiary name entered above.
- Scroll down and enter the Transfer Amount in USD and other details.
- Then enter the account ID (starts with 6BE) (find it in EduFund’s profile section under US Account Set up) in the Sender to Receiver’s Info.
- After reading it through, check the Terms and Conditions box to agree.
- Complete the OTP Verification to initiate the transfer.
- The fund transfer takes around 3-4 business days to reflect under the available cash balance on the app.
7 steps to invest in US stocks
- Open the EduFund app.
- Select the Invest option from the icons in the horizontal bar present at the bottom.
- Select US Market on the top. (On this screen, you’ll see the top US Stocks and the US ETF Baskets.)
- Select the stock you want to invest in and tap on buy. If the stock you want to invest in is not on the screen, click View All and use the Search bar to search for your desired stock.
- You’ll be able to see the Price and Available cash balance in your US Account.
- Now under this, you’ll be able to see Market Order and Limit Order.
- In limit order – it’ll ask you Share to buy, Limit price, Duration and Estimated amount.
- The market order will ask you Share to buy and Dollar to buy (amount of dollars you want to invest).
- You can click on Place order after entering the above details.
Always choose an investment instrument suitable for your portfolio and aligned with your investment goal and risk appetite. Before taking exposure to US stocks, fundamentally analyze the companies so that investments are safe. Nevertheless, consult an expert to know the right investment option for you.
You can reach out to us on EduFund Customer Support for further queries, doubts, or guidance.