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Asked a question 2 years ago

What are the ways for retail investors to invest in global markets?

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Hi Ishita,

There are many ways through which retail investors can invest in global markets. Mutual Funds and ETFs are the most frequently use instruments to invest in global markets. However one can also invest through ADRs, GDRs, Direct Investing and Foreign Direct Investing. These instruments are slightly complicated and one needs to have a broking account with a international broker. Hope iam able to address your query. 

There are many startup app's on the google play store that are not registered Indian stock brokers, that facilitates Indian resident citizens to buy securities in the U.S. exchanges.

I tried using one of them about 2 years back, it's an app called v****d, My account opening process didn't progress because of OTP issues, tried mailing them, no response. I questioned myself, what if they ignored my concern even after investing through them. It is my personal policy to not deal with any organisation, that considers even my slightest concern as irrelevant.  So my quest for investing abroad through foreign investment facilitating apps other than registered stock brokers in India was called off. 

Later on through a detailed research, I gave up on the whole idea of investing in U.S. securities because of the legal implications. What many investors don't realize initially is that your FATCA status in India changes and the tax filing becomes complicated. I didn't want to take this route when there were better opportunities in our Indian capital markets itself. 

But, if I decide to invest in U.S. securities market later on, I know these registered stock brokers provide them facilities, Interactive broker, ICICI securities, Upstox is also beta testing such a facility. 

 

Siddhartha Kumaran
More curious than the cat!

Mirae Assets has a FANG+ ETF. It has all those fancy stocks that are listed on NASDAQ that everyone talks about. You don’t have to do any Hungama buy opening account with some weird broker who is not regulated by SEBI and then go put money in some other country through some other broker who has no accountability or concern for you. Then Indian government will have tax laws etc which our auditors will never bother to understand. No point. Buy Mirae FANG+ or even Motilal Oswal NASDAQ Top 100 ETF.