Many Indians are now wondering what ETF global is and should I invest in it as global investing is becoming more and more common. This could be for you if you want to grow your money outside of India but avoid the hassle of selecting particular foreign stocks.
Let’s clarify what ETF global actually refers to and how you might profit from it.
An ETF Global: What Is It?
ETF, or Exchange Traded Funds, is a kind of fund investing in companies all around the world. It is traded, much as ordinary stocks, on stock markets.
Buying an ETF global thus is purchasing a basket of international stocks rather than one company.
Investing in ETF Global: Why?
Here are the reasons more Indians are considering global ETFs:
- Diversity: You are depending not only on Indian markets.
- Global Brand Exposure: Includes Apple, Amazon, Tesla, Google.
- Dollar-based Expansion: Can guard against rupee depreciation.
- Simple Access: These days, Indian platforms provide this.
Popular ETF Global Solutions for Indian Investors
Here are some worldwide ETFs worth looking at (accessible on US or Indian platforms):
- Nasdaq 100 ETF: Features tech behemoths including Microsoft, Meta, Netflix.
- S&P 500 ETF: Follows 500 top US companies.
- Global Clean Energy ETF: Funds green energy companies all around.
- Emerging Markets ETF: Covers nations outside of India that are still developing.
Indian mutual fund houses or apps like INDmoney, Groww, or Zerodha allow many of these to be accessed.
Investing in an ETF Global:
Two ways you can invest are:
- By means of Indian Mutual Funds featuring Global ETF exposure
- Not necessary to open a foreign account.
- Examples: Edelweiss US Tech Fund, Motilal Oswal Nasdaq 100 Fund.
- Not necessary to open a foreign account.
- Direct Funding for Worldwide ETFs
- Calls for an international trading account.
- Limiter of the Liberalized Remittance Scheme (LRS) is $250,000 annually.
- Calls for an international trading account.
Advice to Remember
Think on these before making an ETF global investment:
- Dollar risk (USD-INR).
- Tax policies pertaining to overseas investments.
- Difference in time zones across markets.
- Fund’s Expense Ratio.
Taxation on ETF Global in India
- Should one hold for less than three years: Taxed as per your slab, short-term capital gain.
- Should one hold for more than three years: Long-term capital gain taxed at 20% with indexation.
- Note: Globally ETFs are taxed in India much as debt funds are.
Last Thought
ETF worldwide investments are a good choice if you wish to increase your riches outside of Indian boundaries without choosing stocks one by one. All while being clear-cut, they provide worldwide exposure, easy access, and strong long-term promise.
Start modest, keep consistent, and consider long-term.