What if you could invest in Apple, Google or Nvidia without leaving India? As an Indian investor, you can gain exposure to some of the largest companies of the world through different routes.
With online platforms providing access to international investing, you can directly invest in overseas stocks or mutual funds. Let’s understand how these options work, so that you can choose overseas investment avenues that suit your investment goals.
How can Indians invest in Apple, Google and Nvidia?
Investors in India can gain exposure to global companies through two broad channels. First, they can directly invest in overseas stocks through a platform providing access to international markets. This would allow you to select individual companies like Apple, Nvidia or Alphabet, the parent company of Google.
The second method is investing through Indian mutual funds that buy securities in international markets. These funds can hold shares of multiple global companies, so you do not have to pick individual international stocks.
When you explore international mutual funds, check the investment goal of the fund, its portfolio, and its geographical exposure before investing.
Direct international investing vs mutual funds – What is the difference?
With direct investing in international stocks, you gain greater control over the companies that you own. As an investor, you can decide how much to allocate to a particular stock. Investors can build their portfolios around companies or sectors that they understand.
Mutual funds take a different approach. The fund manager selects the investment based on the goal of the fund. This provides you with exposure to several companies through a single investment.
Investors who prefer diversification and professional management may find this approach more convenient. The table below summarises the differences between directly investing in international stocks and Indian mutual funds with exposure to global companies.
| Factor | Direct international stocks | International mutual funds |
| Choice of investment | Individual companies | Fund portfolio |
| Diversification | Depends on stocks selected | Generally broader |
| Management | Investor chooses investments | The portfolio is managed by a fund manager |
| Investment process | Access to overseas stocks | Indian mutual funds having global exposure |
| Risk | More specific to companies | Spread across the holdings |
What should you check before investing in global stocks?
When you invest overseas, you may encounter factors that you don’t face the same way while investing only in Indian stocks.
1. Currency movement
The exchange rate between the INR and USD can affect the value of your investment when you invest in US stocks using dollars.
2. Brokerage and platform charges
Evaluate brokerage costs and platform charges before you invest in international stocks. Choose a platform with low charges, so that you can retain a larger part of the gains.
3. Market hours
The market hours and settlement processes in the US differ from those in India. Investors should also consider the necessary time commitments when they directly invest in global stocks.
How can beginners start investing in international companies?
If you’re just getting started with investments, think about how international exposure can strengthen your portfolio. With direct investment, you can gain greater control if you want to select individual companies, and are comfortable researching them.
You may consider an international mutual fund if you prefer a diversified portfolio, managed by a professional. Compare the investment objective, portfolio composition, expense ratio, geographical exposure, and past performance before you invest. While choosing the best app to invest in mutual funds, check the features, research tools, and transaction experience.
Conclusion
Indian investors can gain exposure to global companies, particularly US stocks through direct investments or mutual funds. Depending on your investment habits, ability to research, and risk tolerance, you can choose one of the approaches we discussed in this guide. International mutual funds in India can help you diversify your portfolio.
Professional fund managers are entrusted with the research part, which often turns out to be time-consuming. Consider your preferred level of involvement in investing as you choose the most appropriate path to gain international exposure through investments.
