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|
|Earnings per share||$112.23|
|Market Capitalization||$ 1801 billion|
|Average Volume (3m)||1,822,325|
Ways for you to buy Google shares in India.
1. The Direct Way to Invest in Google
2. The ETF Way to Invest in Google
3. The Mutual Fund Way to Invest in Google
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.
Why invest in Google?
There are no doubts about the outstanding performance of Google with its services, products, and investment in new development & research. But before you find out ‘How’, you must know the ‘Why’ of buying Google shares in India.
- It goes without saying that Google has an undoubtedly competitive advantage. Its sustained competitive edge makes it a secure investment.
- Despite the rapid pace of Internet development along with fierce competition, Google has managed to hold a monopoly and outperformed its competition.
- By the time you finish reading this sentence, Google will have received more than 3 lakh searches. This means, in a day, it receives over 8.5 billion searches. 90% of Google’s earnings and revenues come from these searches. Google funds its future projects and turns them into profit centers with these very earnings/ revenues.
- Artificial Intelligence is the next step in the future technology and Google is deploying all its resources into its development.
Is it risky to invest in Google?
Keeping the Great Recession of 2007-08 as a reference, the selling pressure was affected greatly on all stocks (including Google) by falling 65% from 2007-end to early 2009.
But even during this time, not only did Google continue to increase income, but it also quickly made up for all of its losses soon as the economy started expanding and the stock market stabilized.
What are some ways to buy Google shares in India?
You can buy Google shares in India directly using a US brokerage account, through US ETF, or through mutual funds.
What is the minimum amount required to buy Google shares?
Although as of Jan’22, one share of Alphabet costs $2,789.61, you can buy a part of Google stock at only $1.
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