You may well have told more than one equity guru to recommend investing in shares of businesses you know and trust. Moreover, it is best to speak to a specialist advisor who can advise us on which equities to buy and exactly how to buy them. Of course, there are some companies that we all know and trust, such as Apple, Facebook, Amazon, Google, and Starbucks.
“Global leaders such as Facebook, Google, Netflix, Apple, etc. have users across the world, including India. As a customer of a company that’s doing well, there’s a natural urge to want to include them in your portfolio, and benefit from their growth,” says Prateek Mehta, Co-Founder, and Chief Business Officer, of Scripbox. Of late, more and more investors are latching on to the opportunities available in the US markets. “Investing in US foreign stocks has been all the rage recently and with good reason, “says Prateek. The Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX), and Google (GOOGL) stocks are collectively referred to as FAANG stocks.
Individuals are somewhat confident that major manufacturers such as Apple, Google, and Amazon will expand in the future. This is why, in this article, we will discuss how you can purchase stocks of all your favorite brands. Before we get into how to buy Apple, Google, or Amazon stocks, it’s crucial to comprehend why people invest in foreign equity in the first place.
Why Should You Invest in Stocks?
It’s important to consider why you wish to buy stock. Are you searching for price appreciation, stock dividends, or a mixture of the two? Your financial goals will ascertain whether you invest in strong technological stocks or more protective companies with a consistent dividend stream. Most investors look for good growth, such as a history of coherent earnings growth, a strong market position, or goods or services with future growth potential. These should serve as a solid base for subsequent share price growth. However, other factors such as takeover rumors can cause a company’s share price to rise. Investors may also be drawn to recovery plays, which have a low share price but have the potential for a rebound.
Why Invest in Foreign Stocks (Amazon, Google, Apple)?
One of the most common reasons that people buy US foreign stocks is to hedge against the rupee. If you invest in US stocks, you will benefit from the value of the dollar in addition to any potential accelerating growth in the company itself. It also means ensuring that your portfolio is geographically diverse. Another compelling reason to consider investing in alternative investments is that we rely on these luxury brands daily. This provides us with the trust to place a bet on their future growth.
How Do I Invest in Foreign Stocks?
You can invest in international stocks from India using the RBI-approved LRS route. The LRS route permits you to invest up to $250,000 per year in the United States. If you want to buy separate stocks, you can complete your KYC through Indian investment apps such as Cube.
Broadly speaking, you’d be required to:
- Download the app
- Complete the KYC
- Go through the LRS formalities
- Transfer funds
- Start investing
You can then decide on an original investment and purchase your stock. You can also look for stocks like Amazon, Microsoft, Berkshire Hathaway, Costco, Facebook, and others. The cube allows you to invest in US stocks with a low minimum investment of $1! You can buy one or more stocks at the same time.
How to Invest in Amazon, Google, and Facebook Stocks
When investing in foreign stocks, there are a few points to keep in mind:
- Make sure that you are making investments under the guidance of a specialist with a track record of success.
- Invest with an RBI-approved broker.
- Consider the exchange rate.
- Invest with a reputable app/platform such as Cube Wealth.
- Do not buy shares without conducting thorough research and due diligence.
- Maintain a well-balanced portfolio.
- Do not over-diversify by purchasing an excessive number of stocks.
How to Buy Stocks?
Create an Account
To buy Amazon stock, you’ll have to open an account with a governed brokerage, regardless of whether you’re a seasoned share trader or new to stock market-based investments. Stockbroking is a healthy sector, and services for DIY investors range from internet investing systems run by several of the top names in financial services to equity trading apps that run on your smartphone or tablet.
Amazon is Traded Where?
AMZN is the countdown symbol for Amazon Inc. It is traded on the innovation Nasdaq exchange in the United States, which is open from 9.30 a.m. to 4 p.m. (Eastern Time). Many stockbroking accounts should allow you to purchase US foreign stocks. Although if you make the purchase with a US dollar account, raising capital in US dollars imposes a currency exchange fee (typically around 1%). Most brokerages also cost a marginally higher transaction fee when purchasing US shares rather than Australian shares, though it’s worth comparing the prices charged by distinct brokers if you intend to trade US shareholdings regularly.
Conduct Your Research
Visit Amazon’s online corporate communications page to learn more about the company. It is also worthwhile to compare Amazon’s valuation to that of other equivalent US technology companies. One method is to examine relative price-earnings ratios; shares with a high price-earnings ratio are expected to grow significantly in the future.
What is Your Investment Plan?
People typically invest in either of two ways: as a unit price purchase or in smaller, more consistent quantities over time. The last method is frequently alluded to as ‘dollar cost averaging,’ a stock market hack that enables you to spend less per share on mean over time in declining stock markets. Rather than having to wait for a lump sum, an investor’s money can be used in the market right away. Drip-feeding your investment, on the other hand, may surrender price appreciation if the share price rises, while also causing you to pay more in share-trading fees.