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Investment Options for 10 Lakhs in India in 1 Year

Investment Options for 10 Lakhs in India in 1 Year

Investing 10 lakhs for one year can be a challenging task that requires careful consideration of various factors, such as risk appetite, investment goals, and expected returns. It's crucial to make informed investment decisions that align with your financial objectives and tolerance for risk. In this comprehensive article, we will delve deep into the world of investment options available in India and explore the best ways to invest 10 lakhs for a one-year period. By understanding the pros and cons of each option, you can make well-informed decisions that optimize your investment potential while mitigating risks. https://www.youtube.com/watch?v=l8Hyb77tkM8 INR 10 Lakhs Investment Plan | 1-Year Guide 1. Fixed Deposits (FDs) Fixed deposits are a reliable and widely popular investment option due to their safety and stability. With FDs, you can deposit a lump sum amount for a fixed tenure and earn a predetermined interest rate. The interest rates offered by banks typically range from 4% to 6%, providing a predictable return on your investment. FDs are an ideal choice for conservative investors who prioritize capital preservation and a guaranteed return on their investment. Furthermore, they offer the convenience of easy liquidity, allowing you to access your funds when needed. How to Invest INR 500 for Child Education every month? Read More 2. Recurring Deposits (RDs) Similar to fixed deposits, recurring deposits allow you to invest a fixed amount every month for a predetermined period. RDs offer similar interest rates as FDs, making them suitable for individuals who want to build a habit of regular savings. This investment option is particularly appealing to those with a steady income who prefer a disciplined approach to investment. By contributing a fixed amount regularly, you can accumulate a sizeable corpus over time while enjoying the benefits of compounded returns. 3. Public Provident Fund (PPF) The Public Provident Fund (PPF) is a long-term investment option that not only offers attractive interest rates but also provides tax benefits under Section 80C of the Income Tax Act. Currently offering an interest rate of 7.1%, the PPF comes with a lock-in period of 15 years. It is an excellent choice for investors seeking a safe and secure investment avenue that can also help in building a retirement corpus. The PPF provides the advantages of compounding and tax-free returns, making it an appealing option for long-term wealth creation. https://www.youtube.com/watch?v=tdwqQH0xkFw 4. Equity-Linked Savings Scheme (ELSS) The Equity-Linked Savings Scheme (ELSS) is a tax-saving mutual fund that primarily invests in equities. ELSS offers investors the dual benefit of potential capital appreciation and tax deductions under Section 80C. However, it is important to note that ELSS comes with a lock-in period of three years, making it suitable for individuals with a higher risk appetite and a long-term investment horizon. ELSS investments expose you to the volatility of equity markets, but historically, they have delivered attractive returns over the long run. Careful selection of ELSS funds and a systematic investment approach can help you navigate market fluctuations effectively. 5. Mutual Funds Mutual funds have gained significant popularity in recent years due to their ability to provide diversification and professional management. Mutual fund investments help you gain exposure to a portfolio of stocks, other securities, and bonds, which decrease the risk associated with investing in individual assets. Mutual funds offer various categories, such as large-cap, mid-cap, small-cap, debt, and hybrid funds, catering to different risk profiles and investment objectives. Mutual fund investments allow you to benefit from the expertise of professional fund managers and leverage their in-depth market research. 6. Gold Gold has long been considered a traditional safe-haven investment option, providing a hedge against inflation and economic uncertainties. Investors can choose to invest in gold exchange-traded funds (ETFs), physical gold,  or sovereign gold bonds. The returns on gold are influenced by international gold prices, making it subject to price fluctuations. Gold serves as a diversification tool in an investment portfolio and is suitable for those seeking stability and protection against market volatility. Additionally, gold investments offer the flexibility to convert your holdings into cash easily when required. 7. Real Estate Real estate investments offer the potential for long-term returns and act as tangible assets. Investing in residential or commercial properties can provide rental income and capital appreciation over time. However, real estate investments require significant capital and can be illiquid. It is essential to carefully evaluate factors such as location, market conditions, and legal compliance before venturing into real estate. Real estate can be a viable option for investors seeking a long-term investment avenue and are willing to take on the responsibilities associated with property ownership. Talk To An Expert
Investing in international stocks for your child’s education.

Investing in international stocks for your child’s education.

With the rupee free-falling against the US dollar and increasing the cost of living for millions of Indian students studying in the USA or Canada, there can be no better time to start investing in international stocks for your child’s education.   Since immemorial, Indians have saved for education through investments in fixed deposits, gold, life insurance, and real estate. In an inflation-ridden economy, these investments may not be enough, especially if you plan to send your child abroad for higher education.   The growing cost of goods and services coupled with the depreciating value of the rupee against the dollar not only makes saving tougher but also affects your child’s future purchasing power. Consider the table below – if even tuition and living expenses are kept constant over 17 years - the rupee will lose its dollar purchasing power. This can easily make foreign education more expensive for the average Indian parent. Currency Jan-04Jun-21 TuitionDollar50,00050,000LivingDollar25,000 25,000 TotalRupee 75,000 75,000 1=USD Rupee 45.4573.32Total Cost Rupee 34,08,750 54,99,000Increase- 16%  On top of this, tuition fees are rapidly rising. Some universities in the USA like Northwestern University and the University of Pennsylvania have increased their fees by 3.5% and 2.9% respectively. Arizona State University hiked its tuition fees by 5% in 2021! This growing cost shows that Indians investing only in rupee assets to save for their child’s foreign education are likely to lose money over time.   To make sure your savings don’t lose value over time, investing in international stocks is the answer. This is a great way to diversify your investments.    Where to invest in the international stocks and the US market?  There are two types of US equity investments for Indian parents.  The first is stock listed on the Nasdaq and NYSE. One of the most popular and best-performing sets of stocks is FAANG, which represents Facebook, Apple, Amazon, Netflix, and Google. To invest in these stocks, you can buy certain shares of these companies individually or via mutual funds.  The second type is called Exchange Traded Fund (ETF). ETFs are traded on exchanges like Nasdaq and are several stocks put together. These stocks track indices such as the S&P 500 or one sector such as the tech or automotive industry.   Factors to consider before investing in the US market for your child  Note: Before investing in international stocks and the US market. Consider the risk, time horizon, and historical performance of the stocks or ETFs. Saving for education is a sensitive and tough goal so consider all factors carefully. The time on your hands can help you determine your risk level.   If you are a parent with a two-year-old then you can take more risks. You can consider riskier investments like a small-cap ETF such as the Invesco S&P SmallCap Value with Momentum ETF whose cumulative performance of over 100% over the past five years in dollars.  Whereas, as a parent of a 20-year-old aiming to study master's in Canada within two years, your risk appetite is less. You can consider fewer volatility investments and consult with a financial advisor to create a comprehensive plan.  How to invest in US markets?  Indians can start investing by opening a USA brokerage account from their couch! There are many banks and financial partners that help you open an account to invest in international stocks. Once the know-your-customer (KYC) process and verification are completed, you can fund your account and start saving.   Under LRS, Indians can remit up to $250,000 a year for any foreign capital or current account transaction. This includes investments in international stock markets. Market investments are a form of income generation, you are required to pay taxes.   Navigating investments in the US market can be daunting but worth the hassle. Considering the increasing cost of education, geographical diversification is key. By accepting that foreign education and domestic education are only going to rise up, you can make room for considering powerful financial tools to fund your child’s dreams!  FAQs Where should I invest in child education?   Ans. Investing in a diversified education fund or a 529 college savings plan can be a good option for child's education. These investment vehicles offer potential growth over the long term and may provide tax advantages. It's important to research and consult a financial advisor to make an informed decision based on your specific circumstances.  Is it good to have international stocks in your portfolio?   Ans. Yes, having international stocks in your portfolio can add diversification and potentially reduce risk. It allows exposure to different economies and markets, enhancing overall investment opportunities.  Is it good for kids to invest in stocks?  Ans. Investing in stocks for kids can be educational and promote financial literacy. However, it carries risks, so parental guidance and moderation are essential. Consider using custodial accounts or educational resources to ensure a responsible approach to investing. 
Cheapest Investment Plans

Cheapest Investment Plans

As the middle class in India continues to thrive and make significant strides toward financial stability and prosperity, the need for reliable investment plans becomes paramount. Making wise investment choices is key to securing one's financial future and achieving long-term goals. Let's dig deeper into the details of the best investment plans tailored specifically for the middle class in India. By understanding these investment avenues, individuals can make informed decisions that pave the way for financial growth and security. https://www.youtube.com/watch?v=C2K84ePN4IU 1. Systematic Investment Plans (SIPs) Systematic Investment Plans (SIPs) have gained immense popularity among middle-class investors in India. SIPs allow individuals to invest a fixed amount regularly in mutual funds, thus harnessing the power of compounding. This investment avenue provides convenience, flexibility, and the opportunity of investing in diverse asset classes such as equity, debt, or hybrid funds. By investing in SIPs, the middle class can benefit from the potential for higher returns over the long term. Moreover, SIPs also enable investors to initiate with small amounts, making it an ideal investment option for those with limited disposable income. 2, Public Provident Fund (PPF) The Public Provident Fund (PPF) is a government-backed savings scheme that has been a popular choice among the middle class for decades. PPF offers a long-term investment horizon of 15 years, ensuring that individuals can accumulate a substantial corpus over time. This scheme provides a fixed interest rate, which is often higher than that of traditional fixed deposits. Opening a PPF account is easy, as it can be done at designated banks and post offices across India. Additionally, contributions made to a PPF account are eligible for tax deductions under Section 80C of the Income Tax Act. Furthermore, the accumulated amount in a PPF account can be withdrawn tax-free at maturity, making it an attractive investment option for the middle class. 5 Investment Plan every Parent should have Read More 3. National Pension Scheme (NPS) The National Pension Scheme (NPS) is a government-regulated investment plan specifically designed to cater to retirement needs. NPS offers the middle class an opportunity to build a substantial retirement corpus through regular contributions during their working years. The scheme provides a choice of investment options and fund managers, allowing individuals to customize their investment strategy according to their risk appetite. NPS also provides tax benefits under Section 80C, wherein contributions made towards NPS are eligible for deductions. Additionally, partial withdrawals are allowed under specific circumstances, providing individuals with flexibility in managing their financial needs. It's important to note that while NPS ensures security, it may not offer returns as competitive as other investment options. 4. Equity-Linked Savings Scheme (ELSS) Equity-Linked Savings Schemes (ELSS) are mutual fund schemes that combine tax benefits with the potential for higher returns. ELSS funds primarily invest in equities, which offer the opportunity for capital appreciation over the long term. Investments made in ELSS are eligible for tax deductions under Section 80C of the Income Tax Act. ELSS funds have a mandatory lock-in period of three years, encouraging investors to stay invested for the long term. This aligns with the objective of wealth creation, as staying invested for a longer duration allows investors to benefit from the potential growth of the equity market. 5. Fixed Deposits (FD) Fixed Deposits (FDs) have been a traditional investment avenue for risk-averse individuals, including the middle class. FDs provide a secure and predictable return on investment, making them an attractive choice for conservative investors. With flexible tenures and varying interest rates, individuals have the freedom to choose an investment period that suits their needs. Although the returns from FDs may be lower compared to other investment options, they are considered a safe haven for capital preservation. FDs provide a sense of stability and security, which is appealing to middle-class people seeking to protect their hard-earned money. One must remember this is a safe investment option, but FDs hardly give inflation-beating returns. Affordable Investment Opportunities Read More 6. Direct Equity Investment Direct equity investment is an option for individuals from the middle class having a keen interest in the stock market and a willingness to take calculated risks. Investing in individual stocks needs knowledge, thorough research, and a long-term perspective. While direct equity investment can be rewarding, it is important to exercise caution and consider consulting a financial advisor to make informed investment decisions in the equity market. Diversifying investments across sectors and market capitalizations can help mitigate risk. With the potential for higher returns, direct equity investment can be a valuable addition to a well-diversified investment portfolio. Conclusion Investing wisely holds great importance for the middle class to achieve their financial goals and secure their future. Systematic Investment Plans (SIPs), Public Provident Funds (PPF), National Pension Schemes (NPS), Equity-Linked Savings Schemes (ELSS), Fixed Deposits (FDs), and direct equity investment are among the best investment plans in India for the middle class.  By understanding the unique features, risk-reward profiles, and tax implications of these investment options, individuals can make well-informed decisions aligned with their financial aspirations. Remember, investing is a journey that requires discipline, patience, and periodic reviews to ensure that your investments align with your evolving goals and changing market dynamics. Start early, continue to be committed, and reap the rewards of a well-planned investment strategy tailored to your needs. Consult an Expert Advisor
Benefits of US Investments

Benefits of US Investments

Investing in US stocks offers numerous benefits like exposure to the world’s largest and fastest growing economy, a chance to invest in the US dollar, and attractive returns from big companies like Apple, Microsoft, and Tesla. This article explores the benefits of US investments, why it is the right time to invest in the USA from India, and the ease of investing globally in our times. Benefits of US investments  The benefits of investing in US stocks from India can bring about several advantages. Here are some significant advantages to think about:  Diversification: Investing in US stocks allows for portfolio diversification. By adding US stocks to your investment mix, you can reduce the risk associated with having a concentrated portfolio solely focused on Indian stocks. Diversification across different markets can help mitigate the impact of market fluctuations and economic conditions.  Access to Global Giants: The US stock market is home to numerous multinational corporations and tech giants, such as Apple, Amazon, Microsoft, and Google. Investing in these companies provides an opportunity to be a part of their growth and success. These global giants often lead innovation, enjoy stable financials, and may provide potential long-term growth prospects.  Exposure to Different Sectors: The US market encompasses a wide range of sectors, including technology, healthcare, finance, and consumer goods. By investing in US stocks, you can gain exposure to industries that may not be as prevalent or well-developed in the Indian market. This diversification across sectors can help you capture opportunities and reduce sector-specific risks.  Stable and Mature Market: The US stock market is one of the most established and regulated markets globally. It has a long history of stability, investor protection, and transparency. This stability can instill confidence in investors, especially those seeking a secure investment environment.  Why is investing important?  Investing plays a crucial role in wealth creation and financial planning. Here's why investing is important for individuals in India:  Wealth Accumulation: By investing, you can increase your wealth over time. By investing your savings wisely, you have the potential to earn higher returns than traditional savings accounts. Through compounding, your investments can generate additional income, helping you achieve your financial goals.  Beat Inflation: Inflation erodes the purchasing power of money over time. Investing in avenues that generate returns above the inflation rate helps preserve the value of your wealth. By investing in the US market, you can explore opportunities for potentially higher returns and hedge against inflation risks.  Invest in USA with EduFund Can I invest in US Stocks from India?  Yes, as an investor in India, you can invest in US stocks through various channels:  Direct Stock Purchase Plans (DSPPs): Some US companies offer DSPPs, which allow international investors to buy their stocks directly. This enables you to invest in specific US companies without going through a broker.  Global Depository Receipts (GDRs) and American Depository Receipts (ADRs): GDRs and ADRs are financial instruments that represent shares of foreign companies listed on US stock exchanges. They provide an indirect way for Indian investors to invest in US stocks.  Mutual Funds and Exchange-Traded Funds (ETFs): Several Indian mutual funds and ETFs provide exposure to US stocks. By investing in these funds, you can gain access to a diversified portfolio of US stocks managed by professionals.  EduFund's US Investment page offers Indian investors a comprehensive platform to explore and invest in the US stock market. With expert guidance, diversified portfolios, and a focus on long-term growth, EduFund empowers individuals to capitalize on the benefits and opportunities of US investments. So, if you're looking for a US investment page then consider ours.  Invest in the US market: A world of Opportunities  Investing in the US market opens up a world of opportunities for investors in India. The benefits of US investments, including diversification, access to global giants, exposure to different sectors, and a stable market environment, make it an attractive option. With various investment channels available, Indian investors can explore the US stock market and potentially benefit from its growth and performance.  The growth potential of US stocks  One of the key reasons why investing in US stocks from India is appealing is the growth potential these stocks offer. The US economy has a track record of consistent growth, and its stock market has demonstrated resilience and the ability to recover from downturns. This growth potential can translate into attractive returns for investors.  The US stock market is known for fostering innovation and entrepreneurship. It is home to a vibrant ecosystem of startups and established companies that continuously strive for technological advancements and market dominance. By investing in US stocks, Indian investors can participate in the growth of these dynamic companies, potentially benefiting from their success stories.  Moreover, the US market provides access to a large consumer base. The country's robust consumer spending and high standard of living create a favorable environment for companies to thrive. Investing in US stocks allows Indian investors to tap into the purchasing power and consumption patterns of American consumers, which can present lucrative opportunities.  What is the US Stock market timing? Read More Global economic influence  The US economy holds a significant influence on the global stage. As the world's largest economy, its performance and policies have far-reaching effects on financial markets worldwide. By investing in US stocks, Indian investors can align themselves with this influential market and leverage its economic impact.  The US dollar is also the main reserve currency in the globe. Investing in US stocks exposes investors to currency fluctuations, providing an additional avenue for potential gains. The value of the US dollar against the Indian rupee can impact the returns on US investments, offering opportunities for diversification and currency-related profits.  Mitigating risk through research and expertise  Investing in any market comes with risks, and the US market is no exception. However, with proper research, due diligence, and professional guidance, investors can mitigate these risks and make informed investment decisions.  To invest in US stocks successfully, it is crucial to stay updated on market trends, economic indicators, company fundamentals, and geopolitical developments. Various financial research platforms, brokerage firms, and investment advisors provide valuable insights and analysis to assist investors in navigating the US market effectively.  Furthermore, leveraging the expertise of fund managers and portfolio managers who specialize in US investments can be beneficial. Mutual funds and ETFs focused on US stocks often have experienced investment professionals who actively manage portfolios, aiming to generate favorable returns for investors while minimizing risks.  Conclusion Investing in US stocks from India provides an array of benefits, including diversification, access to global giants, exposure to different sectors, and potential for growth. With research and guidance, Indian investors can seize opportunities in the dynamic US market for long-term financial success. 
What is US stock marketing timings?

What is US stock marketing timings?

The stock market is not just a trading hub but also a real-time tool for monitoring the state's financial performance.   Having one of the strongest economies in the world, the stock markets in the United States are one of the most financially rewarding avenues for people interested in investing in company shares, derivatives, bonds, futures, commodities, and other financial instruments, which is why foreign investors keep an eye on US market trading hours.   Indian investors can now easily invest in the stock markets of the United States thanks to technological advancements. Through this article, you will get to know everything about the US stock market timing Regular trading hours in US time  The New York Stock Exchange (NYSE) and NASDAQ, in particular, open at 9.30 a.m. and close at 4 p.m. ET (Eastern Time), a time zone that encompasses the Eastern states of the United States and parts of Canada. On weekends and holidays, the stock exchanges are closed.  Every year, there are a few market half-days. Depending on the calendar, they may fall on July 3 or 5, the day after Thanksgiving, and Christmas night. The NASDAQ and NYSE both close at 1 p.m. ET on certain half-days.  Regular trading hours Indian time  Investing in India is critical to account for the time difference between the United States and India. The NYSE and NASDAQ open and close at 8 p.m. (IST) and 2.30 a.m. (IST) respectively.  Due to daylight saving time, this varies throughout the year (DST).   Eastern Standard Time, or EST, is a time zone observed throughout the United States throughout the autumn and winter months.   EDT is 9.5 hours behind IST because it is 4 hours behind Greenwich Mean Time (UTC - 4).  Source: Pixabay Daylight saving time  One factor to remember when it comes to stock market timing in the United States is the effect of daylight-saving time, which occurs when the country's clocks are ahead by one hour.   DST is observed from the second Sunday in March to the first Sunday in November. The stock markets in the United States open at 7:00 p.m. IST and close at 1:30 a.m. IST.  Eastern Daylight Time, or EDT, is observed during the summer and spring seasons. Compared to Greenwich Mean Time or UTC - 5, EST is 5 hours behind and 10.5 hours behind IST.  Pre-market and after-hours trading hours  Trading is done in the United States even outside of typical business hours. Pre-market trading runs from 8 a.m. to 9.30 a.m. ET, or 1:30 p.m. to 7 p.m. IST, while after-hours trading runs from 4 p.m. ET to 8 p.m. ET, or 1:30 a.m. IST to 5:30 a.m. IST.   However, one should be mindful of the hazards because of the poor liquidity, low volume of participants, and volatility associated with pre-market and after-hours trading. The investing platform will determine whether one can invest pre-market or after-hours.  The timings in IST for other US stock exchanges are given in the table below.  NameStateOpening Bell (in IST)Closing Bell (in IST)Boston Stock ExchangeMassachusettsIt was acquired by NASDAQ Inc. in 2007.Chicago Stock ExchangeIllinois7:00 PM1:30 AMInternational Securities ExchangeNew YorkIt is a wholly-owned subsidiary of NASDAQ Inc.Miami Stock ExchangeFlorida7:00 PM1:30 AMNational Stock ExchangeNew JerseyThis was acquired by the NYSE in 2017 and is now traded as NYSE National.Philadelphia Stock ExchangePennsylvaniaThis was also acquired by NASDAQ Inc. and is traded at NASDAQ as Nasdaq OMX PHLX. The two largest stock exchanges in the United States, NYSE, and NASDAQ have bought the bulk of regional stock exchanges. As a result, regional time zones do not affect the timings of US stock markets in India.  List of holidays observed by the US Stock exchange Holiday202220232024New Year’s Day—Monday, January 2 (New Year's holiday observed)Monday, January 1Martin Luther King, Jr. DayMonday, January 17Monday, January 16Monday, January 15Washington's BirthdayMonday, February 21Monday, February 20Monday, February 19Good FridayFriday, April 15Friday, April 7Friday, March 29Memorial DayMonday, May 30Monday, May 29Monday, May 27Juneteenth National Independence DayMonday, June 20 (Juneteenth holiday observed)Monday, June 19Wednesday, June 19Independence DayMonday, July 4Tuesday, July 4**Thursday, July 4**Labor DayMonday, September 5Monday, September 4Monday, September 2Thanksgiving DayThursday, November 24***Thursday, November 23***Thursday, November 28***Christmas DayMonday, December 26 (Christmas holiday observed)Monday, December 25Wednesday, December 25**** ** On Monday, July 3, 2023, and Wednesday, July 3, 2024, At 1:00 p.m., each market will close early (1:15 p.m. for qualified options).  On these dates, Crossing Session orders will be accepted starting at 1:00 p.m. for continuous executions until 1:30 p.m., while the late trading sessions for NYSE American Equities, NYSE Arca Equities, NYSE Chicago, and NYSE National will close at 5:00 p.m. All times are in Eastern Standard Time.  *** On Friday, November 25, 2022, Friday, November 24, 2023, and Friday, November 29, 2024, each market will close early at 1:00 p.m. (1:15 p.m. for qualified options) (the day after Thanksgiving).   On these dates, Crossing Session orders will be accepted starting at 1:00 p.m. for continuous executions until 1:30 p.m., while the late trading sessions for NYSE American Equities, NYSE Arca Equities, NYSE Chicago, and NYSE National will close at 5:00 p.m. All times are in Eastern Standard Time.  **** On Tuesday, December 24, 2024, each market will close early at 1:00 p.m. (1:15 p.m. for qualifying options).   On this date, Crossing Session orders will be accepted starting at 1:00 p.m. for continuous executions until 1:30 p.m., while the late trading sessions for NYSE American Equities, NYSE Arca Equities, NYSE Chicago, and NYSE National will close at 5:00 p.m. All times are in Eastern Standard Time. FAQs What are the trading hours in the USA? The New York Stock Exchange (NYSE) and NASDAQ, in particular, open at 9.30 a.m. and close at 4 p.m. ET (Eastern Time), a time zone that encompasses the Eastern states of the United States and parts of Canada. On weekends and holidays, the stock exchanges are closed. What time can Indians invest in USA stocks? Investing in India is critical to account for the time difference between the United States and India. The NYSE and NASDAQ open and close at 8 p.m. (IST) and 2.30 a.m. (IST) respectively.  What are Pre-market and after-hours trading hours in USA? Trading is done in the United States even outside of typical business hours. Pre-market trading runs from 8 a.m. to 9.30 a.m. ET, or 1:30 p.m. to 7 p.m. IST, while after-hours trading runs from 4 p.m. ET to 8 p.m. ET, or 1:30 a.m. IST to 5:30 a.m. IST. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT
How to invest in Apple from India?

How to invest in Apple from India?

How to invest in Apple from India? This is a commonly asked question amongst Indian investors. And, why not? Apple is a Cupertino, California-based global technology business that designs, develops, and sells consumer goods, computer software, and internet services.   The iPhone smartphone, iPad tablet computer, MacBook, iPod portable media player, Apple Watch smartwatch, and Apple TV digital media player are among its hardware offerings.   The macOS and iOS operating systems, the iTunes media player, the Safari web browser, and the iLife and iWork creativity and productivity suites are all part of Apple's consumer software.   The company's online services include the iTunes Store, iOS App Store, Mac App Store, Apple Music, and iCloud.  Due to the dynamic leadership provided by Apple's founders, Steve Jobs, Steve Wozniak, and Ronald Wayne, the company has experienced significant financial and marketing growth.   Apple is the most valuable corporation in the world, with revenues of $274.3 billion and a market valuation of $2.4 trillion.   The answer to the company's progress lies in its tagline, which says, 'Think Different. It's no wonder it's been able to build significant money for its investors.  Source: Pixabay There are three prime reasons why you should consider investing in Apple (APPL)  It provides geographical diversity to your portfolio  The depreciation of the rupee vis-a-vis the dollar is also a prime reason.  The shares have provided stable handsome returns in history. The annualized average returns of apples are around 30.86%, which is more than anything on the plate!  Apple is one of the few stocks that should be in every investor's portfolio. Let's first look at some basic stuff before we proceed.  Latest market close$163.1752-week range116.21 - 182.94Dividend yield 0.88%Earnings per share$6.03Beta1.19Market Capitalization$ 2695 billionAverage Volume (3m)96,177,820PE ratio 27.09 Invest in Apple from India: 3 Ways to Invest 1. Direct way  You can directly trade in Apple from India by registering on a US brokerage account using 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.  2. The ETF way  One way to invest in Apple 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've 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. You can invest in the Russell 1000 Growth ETF or the Vanguard S&P 500 ETF, which contains Apple as one of its top holdings.  Another option for investing in Apple stocks from India is to purchase ETFs that invest in US indices such as the S&P 500. Apple is a holding of the Motilal Oswal S&P 500 Index Fund.   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 an investment will be in Indian rupees, there is no investment restriction. Apple is included in several mutual funds, such as the Nippon India US Equity Opportunities Fund, ICICI Prudential US Bluechip Fund, DSP US Flexible Equity, etc. but only to a minimal level.  Furthermore, this strategy may prove to be more costly. An annual expense ratio will be needed from you. The expense ratio of these funds is typically more significant, 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 Apple would be your portfolio's more significant risk strategy. FAQs How to invest in Apple from India? There are many ways to invest in Apple from India: directly in the stocks, through mutual funds, and through ETFs. The most efficient way to invest is through the EduFund App - all you need to do is download the App, set up your US account, and then start investing in US stocks and ETFs. Can I buy Apple shares? Yes, you can buy Apple shares from a third-party brokerage like EduFund. They allow you to invest directly and indirectly via mutual funds and ETFs on the App itself. Can Indians buy stock in Apple? Yes, Indians can buy stocks in Apple Inc via EduFund. All you need to do is open a US account and start investing from the comfort of your home. Consult an expert advisor to get the right plan for you TALK TO AN EXPERT
Know about taxation while investing in the US market

Know about taxation while investing in the US market

Earlier we discussed taxation in mutual funds. In this article, we will discuss tax liabilities to consider while investing in the US market. Many investors are interested in learning more about the US market and its investment opportunities. The financial market in the United States is the most influential financial center globally. The New York Stock Exchange is the world's largest stock exchange, with a market capitalization of more than 26.7 trillion dollars as of March 2022, while India's GDP was 2.7 trillion dollars in 2020. You can imagine how big the US equity markets are.  As an Indian investor considering investing in the US share market, you should know the tax liabilities and benefits. You will not be able to keep the money you earn tax-free.  There are two types of gains from equities that are subject to taxation 1. Dividends  A dividend refers to a portion of a company's profit that it intends to distribute to its shareholders.   As a result, because your investment is profitable, you must pay up the tax on the dividend you get. Although a firm is not required to pay dividends, most Blue-Chip corporations do so to retain goodwill.  2. Capital gains on the sales  When selling a stock, you have the option of making a profit or a loss. If you make a loss, no tax is due, but you must pay Capital Gains Tax on that profit if you make a profit.   The stock's holding duration determines the capital gains tax rate.  Let's now dwell on the taxation aspect 1. Dividends  In the United States, if you own stock in a firm that pays a dividend, your tax burden is a flat 25% which gets deducted from your dividend before you get it, resulting in a cash distribution of 75% of the dividend.  The good news is that because the US and India have a Double Taxation Avoidance Agreement (DTAA), you would be able to offset the US tax withheld against your Indian tax burden.   As a result, the tax you pay on the 100% dividend will be offset by an overseas tax credit of 25%, leaving you to pay only the difference.  Let's understand with an example Suppose you own Google (GOOGL) and have received a USD 1000 dividend. The broker will deduct USD 250 as his/her fee from the USD 1000 dividend you gained, while USD 750 will be transferred into your bank account.   The USD 1000 dividend is included in your annual income for tax whenever you file your return in India. You will, however, be allowed to use USD 250 in international tax credits to decrease your Indian tax liability.  2. Taxation on capital gains  There is no Capital Gains Tax on US Stocks for foreigners in the United States. However, you must pay tax in India under the Capital Gains Tax scheme.  Capital Gains are divided into two categories  a) Long-term capital gains tax rate (LTCG)  If you own a stock for more than 24 months, the profit from selling it shall be taxed at the long-term capital gains in India.   Long-term capital gains are taxable at a rate of 20%. (Plus, any additional surcharge and cess).  b) Short-term capital gains tax rate (STCG)  If you make a sale before the 24-month, it will be the same as regular income, and your tax bracket will determine the tax rate.  Let's take an example to understand  For instance, you brought Apple shares worth USD 5000 and sold them for USD 7000, making a profit of USD 2000. While this gain will be tax-free in the United States, you are required to pay your tax dues in India on the USD 2000 capital appreciation.   If you hold the shares for two years, the tax accumulated is USD 400 plus any applicable surcharges and cess.   If you sold shares after owning for a little less than 24 months, USD 2000 would've been added to your income and taxed according to your tax bracket for the year.  Let's sum it up in an illustration for ease of understanding and assimilation The tax implications of investing in the US stock market are straightforward, and this should not deter any Indian investor from doing so.  FAQs Do Indians have to pay taxation on capital gains? There is no Capital Gains Tax on US Stocks for foreigners in the United States. However, you must pay tax in India under the Capital Gains Tax scheme. What are the rules for taxation on dividends? In the United States, if you own stock in a firm that pays a dividend, your tax burden is a flat 25% which gets deducted from your dividend before you get it, resulting in a cash distribution of 75% of the dividend.  The good news is that because the US and India have a Double Taxation Avoidance Agreement (DTAA), you would be able to offset the US tax withheld against your Indian tax burden.   As a result, the tax you pay on the 100% dividend will be offset by an overseas tax credit of 25%, leaving you to pay only the difference. TALK TO AN EXPERT
US Dollar printing leading to dollar softness?

US Dollar printing leading to dollar softness?

The Central Bank of the United States - The Federal Reserve, since the beginning of 2020, has printed over $3 trillion with significant printing activity happening between March 4th, 2020, and April 15, 2020, when the assets of the central bank rose by nearly 50% from $4.24 trillion to $6.37 trillion respectively. The printing was majorly carried out to combat the impact the COVID-19, which has resulted in a weakening economic condition. But how does it impact the U.S. economy, currency, and Indian investors? How does the central bank put money into the economy? The Federal Reserve prints money and buys bonds equivalent to the money printed from financial institutions. This leads to a supply of currency in the economy, which is likely to drive down the interest rate (for borrowers), thereby putting an impetus on their consumption pattern. Additionally, lowering the interest rate also compels businesses to borrow and expand their presence. These activities are aimed at reviving the economy. The printing of currency, however, has led to a weakening of the dollar as seen in the dollar index chart (See charts below).  Source: FRED; EduFund Research What happens to the U.S. Dollar Index? The U.S. Dollar Index: It is a barometer for the international value of the U.S. dollar and the world's most recognized, publicly traded currency index. The U.S. Dollar Index measures the value of the U.S. dollar relative to a basket of the top 6 currencies: EUR, JPY, GBP, CHF, CAD, and SEK. As seen from the chart below, the dollar has been weakening. Note: DXY – U.S. Dollar Index; DJI – Dow Jones Industrial Average At what rate is the money printed? The maximum growth in printing was during the weeks ending March 18th, March 25th, April 1st, April 8th, and April 15th. Not surprisingly, the Dow Jones Industrial Average after bottoming out around March 18th, started to gain traction with the week ending April 8th showing a 12% increase over the previous week. During the period between March 18th to June 10th, the DJIA returned as much as 36%. The explanation for the rally is simple the money created by the central bank found its way to the American stock market and also the market outside of the U.S. in some cases. Considering the FPI activity, the data is in line with what one can expect with the creation of liquidity by the central banker. 12 months FPI flow – India in Asia looking for constructive long-term growth Has the newly printed money helped the economy? Well, the extent of the downturn and pace of recovery is uncertain and is likely to remain the same in the days to come. Until a trend for full recovery from COVID-19 is seen, re-instating confidence amongst the citizens remains a daunting task. Only with full recovery in sight, people will be able to re-engage in a broad range of activities. Also, the policy actions, to provide relief and support the economic recovery, at different levels of the government is likely to show some signs in days to come. What does it mean for Asian investors, particularly in India? A weakening dollar signals a higher risk appetite and is considered positive for growth in emerging economies. Further, the likelihood of renewed weakness in the U.S. dollar following Democrat Joe Biden's presidential victory should give another reason for investors to favor Asian stocks, including India. Robust local currencies help bolster the national balance sheet, and borrowers benefit from lower dollar-denominated repayment. Faced with a softening dollar, U.S. investors tend to seek growth and earnings opportunities outside the country. This has shown some improving signs for the economy such as in India where the corporate earnings are responding positively. Conclusion We, at Edufund, believe that the dollar's woes are expected to continue and Asia, including India, is setting itself for a constructive start to 2021. Any positive development on the vaccine front is likely to encourage investors toward riskier assets while shying away from traditional havens. Additionally, the fact that Democrats do not have Senate control may reduce the possibility of future stimulus thereby putting more pressure on the Fed to act aggressively for economic revival. Thus, the currency is likely to depreciate over the longer term, due to less favorable U.S. interest rates relative to other G-10 currencies than in the past. FAQs What is the U.S. Dollar Index? US Dollar Index is a barometer for the international value of the U.S. dollar and the world's most recognized, publicly-traded currency index. How does the central bank put money into the economy? The Federal Reserve prints money and buys bonds equivalent to the money printed from financial institutions. This leads to a supply of currency in the economy, which is likely to drive down the interest rate (for borrowers), thereby putting an impetus on their consumption pattern. What happens to the value of money if it is overprinted? Overprinting can result in the devaluing of money and also cause inflation in the market.
Top 10 mistakes to avoid when investing in the US stock market

Top 10 mistakes to avoid when investing in the US stock market

Everyone wants a slice of the American Dream and with globalization, benefiting from the world's largest economy is no longer just a dream. Now Indians are investing in US markets from the comfort of their homes yet there are some common mistakes to avoid when investing in the US stock market that you should know before entering! The US stock market offers significant opportunities for investors worldwide, from selected securities to exchange-traded funds across a variety of indices and themes.  However, before you invest in US equities, you need to know how to prevent the following US stock investing blunders. While some will be similar to stock market investing blunders to avoid if you're a newbie, others will be exclusive to supporting in the United States.   Ten mistakes to avoid when investing in the US stock market  1. Holding only equities  While it is natural to desire to invest in a few of the world's most well-known companies, focusing solely on choosing specific equities is one of the most common mistakes to make when investing in the United States.  Your investing strategy should be customized to your risk tolerance and include a nice blend of equities and exchange-traded funds (ETFs). If you're new to the stock market in the United States, you should begin with an ETF-only strategy.  2. Lack of investment goals  A lack of adequate investment goals is among the most prevalent blunders when investing in global stock markets. You must carefully craft your investment goals and use the most suitable financial tools to attain them.  3. Going with the trend, don't  Please do not purchase a stock simply because it has come up in the press or because you believe you have already lost money due to a company's surge and therefore cannot afford to lose any more. Remember, you're investing in a company, not a stock.  4. Timing the market  Another classic stock-trading gaffe is attempting to time the market. It's difficult to gauge the demand, and experienced investors frequently make mistakes.   According to an American Pension Fund Returns study, correct asset allocation accounts for roughly 94 percent of portfolio returns, not market timing or individual stock selection.  5. Ignoring tax liabilities  Keep in mind this flowchart  6. Not knowing forex rates  The exchange rate is essential when depositing Indian cash into your US brokerage account. Your bank will also charge you a foreign exchange conversion fee.   As a result, it's best to go with a platform that has partnered with banks to offer better exchange rates and a reduced markup cost.  7. Violating LRS regulations  The LRS regulates how much money an Indian person can send abroad and for what purposes. An Indian cannot use margin to invest internationally, in speculative products, or trade-in FX pairs under the LRS.  8. Asset class allocation   The secret to a good investment portfolio is asset allocation. On the other hand, investors make the typical mistake of focusing on individual equities rather than doing adequate asset allocation.  9. Over diversification   When used correctly, diversification is an excellent risk management technique. When assets have various risk profiles and little correlation, it add value.   Over-diversifying, on the other hand, can be counterproductive. Adding US equities ETFs to a diverse US stock portfolio, for example, may well not make sense.  10. Being impatient  Long-term investing requires only 1% action and 99 percent patience. On the other hand, many investors lack patience and wind up constantly fiddling with their portfolios.   To maintain a disciplined attitude, you must look past short-term volatility and concerns and focus on the market's long-term growth potential.  Morgan Housel, in his book “The Psychology of Money”, modifies a quote from the great Napoleon while talking about investing:   "A good definition of an investing genius is the man or woman who can do the average thing when all those around are going crazy."  Keep the above mistakes and the quote in mind if you want to get the most out of your investment in the United States. FAQs What are some common mistakes to avoid when investing in the US stock market? Here are some common mistakes to avoid when investing in the US stock market: Lack of investment goals and a time horizon Blindly following trends and investing randomly Violating LRS regulations and not consulting your CA in terms of taxes Over diversification and investing in multiple stocks Being impatient and over-monitoring the markets What are 5 mistakes investors make? The most common mistakes that investors make are: An attempt to time the market and wait for the right time to invest, Try active trading Misunderstanding financial markers and performance details, Working alone or choosing the wrong investment advisor Not attempting to understand the tax dynamics and liabilities What is the golden rule of investing? The golden rule of investing is greater the risk, the greater the returns! A bonus rule is always to consult your financial advisor before investing your money in any scheme. Consult an expert advisor to get the right plan for you  TALK TO AN EXPERT
Invest INR 500 every month for child education

Invest INR 500 every month for child education

If you want to make the life of your child safe, secure, and rewarding, start investing INR 500 every month for the child as early as possible, say financial experts. Even a small amount of INR 500 will go a long way in creating a solid financial corpus if it is backed by good planning and a strong investment vehicle.  The right kind of investment is of utmost importance because it will safeguard the future interest of the child and lessen his financial burden. Best investment plan to invest INR 500 every month for the child Planning an investment of INR 500 every month for a child is a huge thing; hence investors need to consider many factors before finalizing the perfect investment vehicle.  1. Systematic Investment Plan or SIP Invest INR 500 every month for the child in mutual funds with the help of SIP, as the small amount will keep on adding and compounding to create a very large financial corpus. SIPs are one of the best vehicles because it encourages investing and saving consistently in a disciplined manner.  Start as early as possible because it will provide a large window for the fund to accumulate. For example, if the investment period is 20 years and the expected rate of return is 10% per annum, then a monthly sum of INR 500 can result in nearly INR 3,82,848.  Invest through the Edufund App, as it offers a choice from 4000+ direct mutual funds. It is easy to start and stop a SIP anytime you desire.  2. Direct Equity For investors who are not afraid to take high risks, the amount of INR 500 can be used to buy direct equity. Choose growth stocks as they will yield better returns (in the average range of 50%) than average equity, which is expected to yield a return between 13% - 15%. Remember, patience is the key to growth equity, and you have to remain invested for the long term to get solid returns.  3. Public Provident Fund (PPF) The PPF investments are for investors that do not want to take risks and are looking for safe investment vehicles. With a 7.1% interest rate, PPF is a long-term tax-saving investment scheme that can be opened in a bank or a post office.  4. Recurring Deposit Account The interest rate on recurring deposits is nearly 6.5% to 6.9% depending on the bank. The RD account can be opened in a bank or a post office where an investment of INR 500 will keep on accumulating and earning interest throughout the investment period. The RD account is for investors who want to keep their money in a safe environment and simultaneously earn some money. 5. Child Insurance Plans  Child Insurance Plans are some of the best vehicles to invest INR 500 every month for a child. There are child life insurance plans that can be paid on a monthly basis.  With an amount of INR 500, you can buy a term insurance plan that offers high death benefits.  Child investment plans are very advantageous because if in some cases the policyholder dies then the future premiums are waived. The insurance company then keeps on investing the premium amount on behalf of the policyholder, and the amount is given to the child as per the terms and conditions of the policy. Examples of child insurance policies with a premium under INR 500 per month are SBI Life’s Term Insurance Plan, where the minimum premium is only INR 365 per month, and the ABSLI DigiShield Plan, with a minimum premium of INR 477 per month.  If you have a girl child, then there are also several investment schemes just for the girl child. The government-backed scheme Sukanya Samriddhi Yojana was introduced specially to save the future of a girl child. You can invest INR 500 per month and the amount is payable after the maturity period of 21 years.  6. Stocks & ETFs Although stocks are considered risky, they have an advantage over some of the investment options, like recurring deposit accounts, because of high returns over a long period. ETFs are also high return cost-effective investment vehicles through which the investor can invest in entire sectors.  Conclusion Take a leap of faith and start the journey to invest INR 500 every month for the child because it will go a long way in creating a lump sum amount in later years.  Take the help of the investment experts on the Edufund app to create the best possible personalized financial plan for your child with an amount of INR 500. The strategies are backed by data, research, and appropriate tools like the investment calculator so that you will get better returns on your investment, and that too in a secure and transparent environment. Consult an expert advisor to get the right plan TALK TO AN EXPERT
Things to know before investing in stocks

Things to know before investing in stocks

In India, investing is considered a rich man’s game. The common disbelief is that only the rich can invest in stocks and reap the benefits of the market. This is far from the truth. Investments and investing in stocks are possible for everyone.   But before you start buying stocks, you should conduct in-depth research, evaluate the stock's fundamentals, and determine whether it fits in your portfolio.  As an investor, you should conduct the appropriate research since when you purchase a stock in a firm, you also become a shareholder in that business.  5 things to know before investing in stocks  1. Time horizon   Originally, you need to decide the time horizon before buying a stock as it plays a pivotal part in deciding whether to buy that stock or not. Your investing time horizon can be short-term, middle-term, or long-term, grounded on your fiscal pretensions.  Short Term - A short-term time horizon is any investment that you're planning to enjoy for or under one year. However, also it's stylish to invest in stable blue-chip stocks which pay tips. If you’re planning to buy a stock and hold it for under a time. The companies have a good balance distance and there are smaller pitfalls involved.   Medium Term - A medium-term investment is an investment that you want to hold from one time to 10 times. For middle-term investing one should invest in quality arising requests stocks and stocks having a moderate position of threat.   Long Term - Eventually, long-term investments are any investment that you're planning to hold onto for further than 10 times. These investments have time to recover if the commodity goes wrong and can induce a significant return.  2. Investment strategy  Prior to purchasing a stock, it is crucial to research several investing techniques and select the one that best fits your investing philosophy.  The three main categories of methods utilized by the most prosperous investors are listed below:  Value Investing: Value investing is the practice of purchasing discounted stocks with the intention of making profits. Warren Buffett employs this tactic to generate enormous riches.  Growth investing: It is the practice of purchasing shares of companies that have outperformed the market in terms of sales and profits. Growth investors think that the upward trends in these equities will persist and present a chance for profit-making.  Income Investing: Lastly, investors need to search for high-quality stocks that offer sizable dividends. These dividends produce money that can be spent or reinvested to boost future earnings potential. Consequently, you should think about the approach that works well with that investment style before purchasing a stock.  3. Check fundamentals before buying a stock   Some of the most important rates to consider before buying a stock   Price-to-Earnings rate (P/ E rate): The p/ E rate compares the stock’s price with the company’s earnings per share(EPS). For illustration, if a company is trading at Rs. 20 per share that produces EPS of Rs. 1 annually, also its P/ E rate is 20 which means that the share price is 20 times the company’s earnings on a periodic basis.   Debt-to-Equity rate: The debt-to-equity rate helps in determining how much the company is in debt. High situations of debt are bad as it signals ruin.   Price-to-Book-Value rate (P/ B rate): The p/ B rate compares the stock’s price to the net value of means that are possessed by the company, and is also divided by the number of outstanding shares.  4. Size of the company   How much risk you are willing to face when purchasing a stock is greatly influenced by the size of the company you are thinking about investing in.  Therefore, before purchasing a stock, it's critical to evaluate the company's size in relation to your risk tolerance and time horizon.  5. History of dividends  Stocks that pay dividends to investors are known for sharing a portion of their profits with them.  Investors who use the income investing approach ought to aim to buy shares of these dividend-paying companies.  If an investor wants to make money from their investments, they should research the company's dividend history before purchasing its stock.  The company's dividend yield, which is expressed as a percentage, is something income investors should look at if they want a high level of income relative to the stock price.  Conclusion  Make sure you purchase the greatest firms before you purchase any stocks to add to your portfolio. No matter how soliciting the stock request may feel, it’s suggested to do your disquisition before investing any amount of capital. It’s vital to educate yourself about the basics of the request first. Learn the languages associated with online trading and investing. Consult an expert advisor to get the right plan TALK TO AN EXPERT
How to invest in US stocks via mutual funds?

How to invest in US stocks via mutual funds?

The economic impact of Covid-19 has kept Indian and global markets volatile. Markets can trade at higher valuations and drop suddenly without investors realizing it.   This has caused a lot of confusion among investors about how to protect their investment portfolios.  With markets still unpredictable, experts suggest it's the right time to invest in overseas equities like the U.S., especially for investors looking to manage risk through diversification.  Market experts suggest investing in U.S. stocks through Exchange Traded Funds (ETFs) and Funds of Funds (FoFs). So how can you invest in U.S. stocks through a mutual fund?  Read on, to know about U.S. stock mutual funds. What are the mutual fund options to invest in U.S. stocks? 1. Actively managed international mutual funds  International equity mutual funds are the funds that invest a subsequent portion of their total amount in U.S. equities; meanwhile, maintaining some portion focused on Indian equities can be an ideal choice for fresh investors who want to have exposure to the U.S. stock market.   2. ETFs and FoFs  Barring exposure to the U.S. stock markets, Exchange-traded funds and Funds of Funds can provide diversification benefits to the investor's portfolio looking for portfolio stability. ETFs track an underlying index, providing an organized and transparent investment approach while providing exposure to foreign markets. Fund of funds invests in several other mutual funds and allows investors to benefit from exposure to various investments with minimal investment amount. ETFs or FoFs are the cost-effective mode of investment to gain exposure to the U.S. market.  3. Index mutual funds  These funds are passively managed funds and track a specific index from the U.S. stock market. These funds replicate the composition of an index and try to match the returns generated by the same index while charging a low expense ratio.  Benefits of investing in U.S. stocks  Many investors ask why they invest in U.S. stocks when many Indian stocks offer high growth. Let's discuss some benefits of investing in U.S. stocks: Portfolio diversification: By investing in U.S. stocks, an investor can broaden & diversify the overall investment portfolio across the U.S. economy. This helps in mitigating any India-specific economic risks.  The benefit of dollar appreciation: In 2011, the USD-INR exchange rate stood at about Rs. 47. And today, it is around Rs. 82. This indicates that an investor who has invested in the U.S. stock market could have gained 36% by simply taking advantage of the currency appreciation. This gain is apart from the gains that could be made from the U.S. stock market.  Higher returns possibility through international exposure: Compared to the Indian stock market, the trends in the U.S. market have reflected comparatively lower volatility. The former has also provided higher returns on a currency-adjusted basis.  Exposure to companies with higher growth potential: The U.S. market is considered a leader compared to other international markets due to technological innovation, pharmaceutical advancements, and industrial expansion. Investing in U.S. stocks allows Indian investors to benefit from many innovative and high-potential companies.  Who invests in U.S. Stocks through Mutual funds?  Investing in U.S. equities through mutual funds is ideal for investors who:  Are seeking to attain diversification by widening their portfolio's geographical exposure  Want to gain international stock market exposure but at lower risk levels  Seeking higher gains beyond what domestic markets could provide  Have a longer investment horizon and higher risk appetite  Mutual funds help reduce the overall risk that can arise from exposure to the U.S. stock market, but investors should be aware that equity investments carry the risk of loss.  Factors to consider when investing in International mutual funds Investors should be aware of the following risks and tax considerations associated with investing in international mutual funds.  Every international fund has some common risks that investors must be prepared to take while investing in these to gain exposure to U.S. stocks. These are:  Exchange rate risk  Foreign market risk  Concentration risk  Investors must also remember that any returns from international fund investments attract taxes in India. Some points to note here are:  Any dividends of more than Rs. 5,000 from these funds attract TDS at 7.5% for resident investors.  Long-term capital gains tax at 20% is applicable on returns from units redeemed after staying invested for three years.   Short-term capital gains tax is applied per an individual's tax slab for returns from fund units that are redeemed before the completion of 3 years.  Conclusion  The pandemic has forced the world to adopt a new normal in many ways: how we invest, spend, and think about saving. Investors are now focused on keeping their available capital safe. At the same time, more investors are more willing to take risks when working internationally with their portfolios. What better way to explore international markets than to invest in U.S. stocks easily through mutual funds? Consult an expert advisor to get the right plan TALK TO AN EXPERT
How to invest in US stocks on EduFund?

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 addition 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.  TALK TO AN EXPERT
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