Learn to invest in Zoom from India
Zoom Video Communications needs no introduction, especially now that the COVID-19 epidemic has arrived. People began working from their houses when the lockdown was imposed.
Most of it happened over a Zoom video conference, whether a corporate meeting or your child’s online education. This company’s product effectively brought people from all over the world together.
Eric Yuan founded Zoom Video Communications as a software start-up in 2011.
Eric is the current CEO, and the company is based in California, United States. It is known for providing services like video calling and online chat services via cloud-based peer-to-peer software. As of 2021, the total number of employees is 4422.
Salesforce took almost one and a half decades after going public to reach a market capitalization of $100 billion, but Zoom Video Communications took just 14 months. Zoom recently paid $14.7 billion for Five9, a NASDAQ-listed software company specializing in cloud contact centers.
Zoom is one of the North American region’s top 25 highest-value technology companies.
Additional read: How to invest in Netflix from India?
Zoom is one of the few stocks that should be included in every investor’s portfolio. Let’s first look at some basic stuff before we proceed.
|Latest market close||$109.18|
|52-week range||108.43 – 406.21|
|Earnings per share||$4.49|
|Market Capitalization||$ 24.902 billion|
|Average Volume (3m)||4,317,874|
There are three ways in which you can invest in Zoom from India.
1. The direct way
You can trade in Zoom 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.
Zoom’s share price was the US $108.6 on March 03, 2022, which is over eight thousand rupees.
However, the premium price of Zoom shares should not stop you from investing in them because some platforms allow you to participate in fractional shares. With just $1, you can buy a part of a Google stock and own a piece of the corporation.
2. The ETF way
One way to invest in Zoom 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 ProShares Ultra QQQ (QLD) and ARK Innovation ETF (ARKK), which contains Zoom as one of its holdings.
Another option for investing in Zoom stocks from India is to purchase ETFs that invest in US markets. 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. Zoom 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 Zoom would be a greater risk strategy for your portfolio. Investing by convenience, i.e., via ETFs
As Metaverse is still in its infancy, it’s challenging to grasp the Metaverse’s and enterprises’ business models.
As a beginner, you can invest in the Metaverse through ETFs such as the Roundhill Ball Metaverse ETF, which gives you exposure to companies that develop Metaverse infrastructure (like Nvidia), gaming engines that create virtual worlds (like Roblox), and leaders in content, commerce, and social media for the Metaverse (like Tencent). Nvidia Corporation, Microsoft Corporation, Meta Platforms Inc., Roblox Corporation, Tencent Holdings Limited, and Unity Software Inc. are among the fund’s top holdings. The Roundhill Ball Metaverse ETF had 45 holdings and seven nations in its portfolio. The median market capitalization of these 45 holdings is $68 billion.
Put another way, the typical company held by this ETF will be successful and well-established. While these equities will have metaverse connections, there’s a fair probability they’ll also have very profitable core operations that will support metaverse research and development. If you opt to invest in ETFs, you may rest easy.
It’s crucial to realize that Metaverse investments aren’t for everyone. Furthermore, having a significant concentration of assets in stocks of Metaverse-related companies can be dangerous. When investing in the Metaverse, one must consider risk tolerance and the value it will add to the portfolio!