COMPLETE GUIDE to US Stock Market Investing! | Ankur Warikoo Hindi

Summary

This video offers an in-depth guide to investing in the US stock market for Indian investors, addressing key concerns like currency conversion, brokerage accounts, stock selection, and the tax implications of buying and selling. The presenter shares personal investment strategies, endorses the use of INDmoney for seamless transactions, and highlights the benefits of diversifying investments beyond the Indian market, including the potential for higher returns and currency appreciation.

Takeaways

• 🌟 Investing in the US stock market is an exciting opportunity with potentially higher returns than the Indian market, as demonstrated by the speaker's personal experience and data comparison.
• 💰 The US stock market is home to the world's largest and most global companies, making it a financially attractive market for investment.
• 📈 The speaker's portfolio allocation is 40% in the US, 35% in India, and the rest in crypto, start-ups, etc., indicating a diversified investment strategy.
• 🔄 The Liberalized Remittance Scheme (LRS) allows Indian citizens to send up to $250,000 outside India annually for various purposes, including investment.
• 💡 INDmoney is a platform that facilitates the transfer of Indian rupees to US dollars at competitive exchange rates and without transfer charges, simplifying the investment process.
• 🛒 DriveWealth, the brokerage company used by INDmoney, allows buying and selling of US stocks, including fractional shares, which is not possible in the Indian market.
• 📊 The US stock market offers the ability to invest in Exchange Traded Funds (ETFs) like the S&P 500 ETF from Vanguard, providing a simple way to diversify investments.
• 📉 Taxes on US stock investments include capital gain tax (short-term and long-term) and dividend tax, which are claimable when filing income tax returns in India.
• 💸 The only cost associated with INDmoney for transferring money back to India is a $5 withdrawal fee, regardless of the amount transferred.
• ⚠️ If transferring more than ₹700,000 from India to the US, a 5% TDS must be paid, which is claimable when filing income tax returns.
• 📈 Investing in the US stock market can benefit India by bringing money back into the country, paying taxes, and contributing to the economy.

Q & A

Why should one consider investing in the US stock market according to the video?

The video suggests that the US stock market offers exciting opportunities with better growth compared to the Indian stock market, despite having similar volatility. Historical data presented indicates higher returns from the US market over a five and ten-year period, taking into account the appreciation of the US dollar against the Indian rupee.

What is the Liberalized Remittance Scheme (LRS) and how does it relate to investing in the US stock market?

The Liberalized Remittance Scheme (LRS) allows Indian citizens to send up to $250,000 outside of India in a financial year for various purposes, including investment in the US stock market. This scheme simplifies the process of transferring funds internationally for investment purposes.

How has the process of transferring money to the US for investment improved as per the video?

The process has become more streamlined and cost-effective with platforms like INDmoney, which eliminates the high charges and exchange rate issues that were previously associated with bank transfers. INDmoney also provides a seamless experience for converting Indian rupees to US dollars.

What brokerage company does INDmoney use for facilitating US stock purchases?

INDmoney uses DriveWealth, a well-established online brokerage company, to facilitate the buying and selling of US stocks on behalf of its users.

How does the concept of fractional shares in the US stock market differ from the Indian market?

Fractional shares in the US stock market allow investors to buy a portion of a share, unlike the Indian market where one must buy whole shares. This makes it possible for investors with limited capital to invest in expensive stocks.

What is an ETF and how does it relate to investing in the US stock market?

An ETF, or Exchange-Traded Fund, is equivalent to a mutual fund in the US and represents a basket of stocks managed by a portfolio manager. It offers a simple way to invest in a diversified portfolio, such as the S&P 500, without the need for individual stock research.

What are the tax implications for an Indian investor when investing in the US stock market?

Indian investors need to be aware of both short-term and long-term capital gain taxes based on the duration they hold the investment. Additionally, there is a 25% withholding tax on dividends received from US stocks, which can be claimed when filing the income tax return in India.

What is the significance of the five-dollar withdrawal fee mentioned in the video?

The five-dollar withdrawal fee is the only cost associated with transferring money back to India from the US investment account through INDmoney, regardless of the amount being transferred.

How does the appreciation of the US dollar impact the returns on US stock market investments for Indian investors?

The appreciation of the US dollar against the Indian rupee can enhance the returns for Indian investors when they convert their US earnings back to rupees, as they receive more rupees for each US dollar.

What is the role of the State Bank of Mauritius (SBM) in the investment process described in the video?

The State Bank of Mauritius (SBM) acts as an intermediary bank account that INDmoney uses to facilitate the transfer of funds to and from the US investment account.

What advice does the video provide regarding the frequency and amount of money to transfer back to India from US investments?

The video suggests transferring money back to India in bulk, preferably amounts of at least $500, to make the five-dollar withdrawal fee more cost-effective. It also emphasizes the safety and security of keeping funds in the US investment account for potential future investments.