Last updated: 22 Sep, 2021 | 01:39 pm
Apple Inc., an American technology giant is currently the world’s largest technology company in terms of revenue, and also the world’s most valuable company in terms of market capitalization. Apple has seen such massive growth because of the dynamic leadership presented by its founders Steve Jobs, Steve Wozniak, and Ronald Wayne. Apple stock is one of the few that should be a part of any investor’s portfolio. But a question arises here:
Why you should buy Apple shares in India.
The foremost reason is that Apple is the largest company both in terms of revenues by $274.3 billion and market capitalization by $2.4 trillion than any other tech company. It is no surprise that it has been successful in amassing wealth for its investors. If one is seriously considering investing in the American stock market, then by no means can Apple be neglected.
Geographical Diversification: When you invest beyond the Indian market, you diversify your investments geographically. It is advisable to diversify your portfolio to reduce your risk. You should invest in diverse asset classes and sectors and, now, you have the option to invest in a different country too!
Rupee Depreciation: The US dollar is one of the strongest currencies internationally, with rare fluctuations. Your investments in the US dollar can help you in long-term wealth creation. The rising dollar and the declining rupee are also a motivation to buy Apple shares in India. Investments in the US stock market provide generous and stable returns over the long term.
Share Price Returns: Statistically, if you had invested Rs 1,00,000 in Apple 10 years ago [Sept. 2011: $14.30], it would be Rs 15,89,025 by now [Sept 2021: $146]. That’s a gain of 1489% in INR terms. If we further calculate annual average returns provided by Apple shares, then it comes around 31.86%. That’s more than most of the other instruments available in the market.
How to buy Apple shares in India?
Before we discuss how to invest in Apple shares from India, bear in mind that you will have to adhere to the rules laid down by the Reserve bank of India. As per the current rules by RBI, you can remit up to $2.5 lakh in a financial year. Plan your investments as per the laws and guidelines laid down by the respective authorities.
Ways to Invest in Apple from India
You can invest in Apple directly or indirectly. When you make a direct investment, you would open an account with an international broker and buy the company shares. If you wish to invest indirectly, you could choose a Mutual Fund (MF) or Exchange-Traded Fund (ETF) that invests in global equities.
1) Mutual Fund
Mutual funds are basically the tool that collects funds from the investors and then further invests it in a gamut of shares and securities. Certain Indian funds are eligible to invest their funds in the American Stock Market. Some of those funds include:
Exchange-Traded Funds are the funds that track any asset, commodity, or index that can be transacted at the stock exchange. The ETFs can be structured to track anything, from a single security to a large portfolio of securities as per the strategies of the fund. There are certain funds available that provide direct investments in US Equities. These are:
3) Direct Investment
The most straightforward method is directly to buy Apple shares in India. INDmoney is the platform that allows direct investments in the companies listed in American stock exchanges as well. Therefore, by opening a 2 in 1 account through INDmoney, you can directly invest in Apple from India.
Best way to invest in Apple from India
We already saw three ways as to how to buy Apple shares in India. However, as an investor, a question always arises as to which one is the best method. Let’s have a comparative analysis of the three methods discussed above to find out which one is more beneficial to the investors:
The above infographics make it clear that investing directly in Apple stock via INDmoney not only gives you the maximum returns but also saves on your expenses which acts like getting extra returns over and above the normal returns.
Also the problem with investing through the ETF/MF route is that you are unsure what proportion of the money gets invested in Apple shares. Investing directly allows you to have control over your investment, and you can choose the exact amount you want to invest in the stocks of your choice.
If you want to start your investments in the US stock market, then due consideration is a must to buy Apple shares in India. Direct investments in Apple are more beneficial than going through mutual funds or ETFs route. Although mutual funds and ETFs can reduce the risk, they can also reduce the returns sometimes by including low ROI stocks into the portfolio.
Will I have to pay tax both in the US and India?
You will have to pay the capital gains tax only in India. As per the Double Taxation Avoidance Agreement (DTAA) between India and the US, no tax on capital gains gets deducted in the US for Indian residents.
What if I cannot afford to buy one full share of a company?
If you cannot buy a complete share, you have the option of buying a fractional share. A fractional share is a part of one share; it is a fraction of the whole share and, hence, its price is also a fraction. You can buy up to 0.00000001 of a share. With INDmoney, you can buy Apple stock in any dollar value or any other scrip you want.
What are the charges of investing directly in Apple shares through INDmoney?