How to invest in Google from India

Learn to invest in Google (Alphabet) from India

Who doesn’t know Google? It’s the heart and soul of today’s generation and will continue to do so, at least for the next few years. Google is a multinational technology firm based in the United States specializing in Internet-related services and products.   

Among them are online advertising technology, search, cloud computing, and software. Google is one of the most popular search engines on the internet, processing a billion searches every day and holding a 65 percent market share.   

In January 1996, Larry Page and Sergey Brin founded Google as a research project while pursuing their PhDs at Stanford University in California.

They own roughly 14% of the company’s stock and, through supervoting stock, control 56% of stockholder voting power. The company was incorporated and founded in 1998, with the initial public offering in 2004.  

Alphabet Inc. (NASDAQ: GOOGL) is one of the world’s most valuable publicly traded firms. Almost all of Google’s income and profits are generated by Alphabet, the business’s holding company.   

Google’s core business, which accounts for about 90% of its revenue, is online advertising, which it does through Google AdWords and AdSense, where it has been the global market leader for over a decade and controls the majority of global ad expenditure.   

Profits from advertising are used for other sectors that have the potential to become profitable in the future. This allows Google to make large investments in technology that many companies would be unable to drive. The Google Cloud Platform, Google’s cloud business, also generates revenue

Let’s first look at some basic stuff associated with the company.

Latest market close $2638.13 
52-week range 1997.88 – 3030.93 
Dividend yield  NA 
Earnings per share  $112.23 
Beta 1.07 
Market Capitalization $ 1801 billion 
Average Volume (3m) 1,822,325 
PE ratio  23.51 
invest in Google from India

There are three ways in which you can invest in Google from India.  

1. The direct way  

You can trade in Google from India by registering on a US brokerage account using technological 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.  

Alphabet Inc’s share price was the US $2,789.61 on January 14, 2022, which is over two lakhs. However, the premium price of Google shares should not stop you from investing in them because some platforms allow you to participate in fractional shares.

With only $1, you can buy a part of a Google stock and own a piece of the corporation.  

Additional read: How to invest in S&P 500 from India?

2. The ETF way  

One way to invest in Google 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 invest 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 Invesco QQQ Trust, which contains Google as one of its holdings.  

Another option for investing in Google stocks from India is to purchase ETFs that invest in US indices such as the Nasdaq.

Google is holding the Motilal Oswal Nasdaq 100 ETF. 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.  

Additional read: How to invest in NASDAQ from India?

3. 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 investment is in Indian rupees, there is no investment restriction. Google is included in several mutual funds, such as the Edelweiss’ US Technology Fund of Fund but only to a minimal level. Furthermore, this strategy may prove to be more costly.

An annual expense ratio is one such expense. The expense ratio of these funds is typically more remarkable, 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 Google would be a greater risk strategy for your portfolio.

Consult an expert advisor to get the right plan

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