How to invest in Snapchat from India

How to invest in Snapchat from India?

Snapchat has grown very popular amongst Indians in general due to the nature of how it functions! Snapchat is swiftly becoming one of the most popular social media platforms on the Internet.

Undergraduates originally designed it at Stanford University in the United States to enable the instant sharing of photographs and movies.

It was previously known as Snapfish. Millions of individuals have posted millions of posts and received millions of messages since the app’s introduction in 2021.

This is partly because it employs a sophisticated algorithm for determining what the user wants to see and what they do not.  

People are concerned that Snapchat will face significant competition from smaller social media businesses such as Hootsuite and Facebook, which explains why the Snapchat stock has plummeted thus far.

Analysts who follow social and digital media are crossing their fingers that Snapchat will avoid the same fate. The concern that Snapchat will forfeit the battle to these two behemoths is also fuelling the slide in stock prices.  

Some predict a comeback in Snapchat shares since consumers enjoy sharing snaps with their friends and family. Facebook and MySpace might be used to make the same point.

Analysts believe there is a significant possibility to profit from the advantages that Snapchat may provide investors. 

Additional read: How to invest in Zoom from India? 

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

Latest market close $33.26 
52-week range 24.32 – 83.34 
Dividend yield  NA 
Earnings per share  $-0.23 
Beta 1.14 
Market Capitalization $ 53.148 billion 
Average Volume (3m) 32,658,402 
PE ratio  – 
invest in Snapchat from India

There are three ways in which you can invest in Snapchat from India  

1. The direct way  

You can trade in Snapchat 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.  

Snapchat’s share price was the US $33.26 on January 14, 2022, which is over 2500 rupees. However, the premium price of Snapchat shares should not stop you from investing in them because some platforms allow you to participate in fractional shares.

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

2. The ETF way  

One way to invest in Snapchat 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 in that they’re 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.  

For example, you can invest in the Vanguard Total Stock Market ETF (VTI) and Global X social media ETF (SOCL), which contains Snapchat as one of its holdings.  

Another option for investing in Snapchat stocks from India is to purchase ETFs that invest in Snapchat. 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.  

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 the investment would be made in Indian rupees, there is no investment restriction. Snapchat 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 will be required of you. The expense ratio of these funds is typically greater, 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 Snapchat would be a greater risk strategy for your portfolio. 

Consult an expert advisor to get the right plan

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