How to Buy Google Shares in India: Why Invest in Google?
How to Buy Google Shares in India: Overview
One of the most valuable publicly traded corporations in the world is Alphabet Inc. (GOOGL), the parent company of Google. Every day, Google receives more than 3.5 billion searches. Google is primarily a tech business that has made investments in fields such as mobile phones, artificial intelligence, autonomous vehicles, and healthcare in addition to internet search. Online advertising through Google AdWords and AdSense is Google's primary business and the one that accounts for approximately 90% of its income. It has held the global market leader position for more than a decade and controls the majority of global ad expenditure.
The income generated from the advertising industry is put into a few other ventures with the potential to grow into profitable businesses in the future. This enables Google to make significant investments in technologies that many other companies might not be able to. The Google Cloud Platform, Google's cloud service, generates revenue as well. According to Warren Buffet, Google has a substantial "moat" or distinguishing edge that shields it from competitors and enables it to continue generating significant profits.
This article discusses how Indian investors can take advantage of exponential gains from promising US Stocks and talks about different ways how to buy Google company stock in India.
Google LLC is an American multinational technology firm with a focus on cloud computing, computer software, quantum computing, online advertising, artificial intelligence, and consumer electronics. Due to its market dominance, data collection, and technological advantages in the field of artificial intelligence, it has been referred to as the "most powerful firm in the world" and one of the most valuable brands in the world.
Since its inception, the business has expanded quickly to provide a wide range of services and products in addition to Google Search, many of which occupy a significant market share. Several different operations and functions are addressed by these products, such as email (Gmail), navigation (Maps), cloud computing (Cloud), web browsing (Chrome), video sharing (YouTube), productivity (Workspace), operating systems (Android), cloud storage (Drive), language translation (Translate), photo storage (Photo), video calling (Meet), smart homes (Nest), smartphones (Pixel), wearable technology (Fitbit), gaming (Stadia), and music streaming (YouTube Music) among others.
After getting to know the varied businesses that the company engages in and its performance as the market leader in several of these brands, who would not want to place a bet by investing in Google. Let us discuss why one should invest in Google.
How to Buy Google Shares in India: Why Invest in Google?
Although it is pretty clear that Google has been performing outstanding with its products and services and investment in new research and development. It is important to know how well have its shares been performing and if it would be wise to buy the share at this time. Below are discussed some reasons why Google has a long-term upside.
Google's Robust Moat
Stocks with moats are secure investments and have a sustained competitive edge. To understand a moat, let us take an example of Cable companies, given the high expenses of installing new wiring infrastructure, as is Coca-Cola, given its well-known brand name among customers. Google undoubtedly has a competitive advantage online.
This is especially significant given the rapid pace of development and fierce competition on the internet, the structure which allows anybody to create a service that competes. However, Google has been able to establish and keep its monopoly by outperforming its rivals in terms of better outcomes and response times.
Billions of Searches
This is the key component that makes Google a secure investment and a significant source of revenue for the business. Search accounts for around 90% of Google's revenues and earnings. The projects that Google aims to turn into future profit centers are funded by these earnings and revenues. It enables the business to assume enormous risks that other businesses would never even think about. Additionally, owing to search, Google now has a sizable war chest and borrowing power that enable it to buy out any rivals before they present a potential challenge.
The Future of AI
Google is rapidly deploying its resources into the research and development of artificial intelligence. It knows that AI is the future and it is ready to lead the change with its AI-based products and acquisitions in the field of AI. Google is trying to acquire the best developments in the field and aims to integrate them into an asset so huge that Google would enjoy a natural monopoly in the industry in the future.
Thriving in Unfavorable Conditions
Many businesses failed the extensive stress test that was posed by the Great Recession of 2007–2008. The selling pressure had a significant negative impact on all stocks, including Google, which fell 65 percent from its 2007-end peak to early 2009 levels. However, the company quickly made up all of its losses as the stock market stabilized and the economy started to expand. More significantly, Google continued to increase income during this time even as the economy deteriorated.
This is the foundation of Google's strategic planning. The company's product line has steadily increased since it entered the search engine market in 1998. Today, Google offers the broadest variety of goods and services, including self-driving cars, indoor, and outdoor cameras, intelligent thermostats, smoke detectors, and even items to stop mosquitoes in their tracks. In relation to the majority of these goods and services, Google's principal competitive advantage is the first mover advantage.
How to Buy Google Shares in India?
Alphabet Inc. is registered and traded in the NASDAQ and goes by the ticker symbol GOOGL. Hence, it is not possible to trade them in Indian stock markets like the BSE or NSE. Therefore, there are other ways how to buy google stock for Indian investors which are discussed below.
Investing directly in Alphabet shares
Although investing in Google is not available in Indian stock markets, you can register a US Brokerage account with foreign brokerages having a presence in India or tech platforms like INDmoney to invest in US Stocks. You may invest easily in US equities with INDmoney. Learn how to invest here. There are no brokerage fees associated with investing. Anyone may start trading US stocks for as little as Rs. 100. The entire procedure is paperless and is completed in a matter of minutes.
Investing in ETFs that hold an investment in Google
Hopefully, investing directly in individual stocks turns out to be profitable. Additionally, you might be eligible for shareholder perks. However, it might make you more vulnerable to unforeseen changes in share prices and volatility in the stock market. Even a single tweet in today's environment, let alone an entire international conflict, can send the stock market into a tailspin.
Because of this, financial experts advise the majority of investors to invest in a broad portfolio of asset classes and funds that own hundreds or even thousands of equity assets. An ETF is an alternative method of investing in Google stock from India. ETFs are a grouping of numerous equities and bonds that trade as a single fund. They resemble mutual funds in many ways. However, ETFs offer a simple and affordable approach to gaining exposure to a sector or a collection of firms and are traded on the stock exchange with real-time pricing. You can purchase an ETF on a website like INDmoney as one method of investing using ETFs.
Due to its significant weight in the NASDAQ index, Google is included in a lot of ‘active’ and ‘passive’ index tracker funds. With INDmoney, you can invest in the various US-based ETFs like the Invesco QQQ Trust Series 1 ETF which is inspired by the NASDAQ 100 Index and has its 3.73% share invested in Alphabet Inc.
Investing in Mutual Funds that are Influenced by Google
In this situation, your investment will be in a fund of funds, which is a regional mutual fund that invests in a mutual fund that is available in the US. Do note, as an investment will be made in Indian rupees there would be no investment caps involved. Although they frequently only provide limited exposure to Google, mutual funds like Edelweiss' US Technology Fund of Fund do offer it. Furthermore, the expense of using this strategy could increase. A yearly expense ratio will be due from you (fees charged to manage the fund). Because these funds additionally incorporate an additional expenditure levied by the underlying international schemes they invest in, their expense ratio tends to be higher than that of other mutual funds that only handle money for India.
What is the stock price of Google now?
As of 15th July 2022 (IST), the share price of Google is $ 2,239.36.
What are the documents required to start investing in Google?
You will require the following documentation to begin investing in Google:
- Identification documentation (PAN, Aadhaar, etc)
- Proof of residency (Aadhaar, Voter ID, etc)
These documents are necessary, in accordance with RBI regulations, to establish your IND Super Saver Account powered by SBM Bank and enable international fund transfers. The entire procedure can be finished without any paperwork.
Who is the Chief Executive Officer (CEO) of Alphabet Inc?
Sundar Pichai, who is an Indian-originated American, is the Chief Operating Officer of Alphabet Inc.
Can I buy Google as a fraction of a share?
Various foreign brokerages or technological platforms like INDmoney provide the option to buy fractions of shares starting from Rs. 100. Purchasing Google from India is quite simple. You can open a US stocks account with INDmoney within 3 minutes. Transfer money in 24 hours and purchase stocks quickly, all with no brokerage. All of this is accomplished with zero account opening or management fees, zero brokerages, and the lowest rupee-to-dollar conversion rate.