How to Buy Netflix Shares from India? All You Need to Know

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How to Buy Netflix Shares from India?

How to Buy Netflix Shares from India: Overview

Every now and then, a business enters the market and transforms an entire sector or how consumers use goods and services. Netflix Inc. (NLFX) has changed the way we watch television material and pretty much any other form of media, much like Amazon did for the way we shop for our everyday necessities. As the first company to recognise how the internet might change how consumers watch video content, it enjoyed an advantage in the streaming market.

When it comes to streaming services, Netflix is the market leader for a number of reasons. Netflix features a strong recommendation engine that offers users what shows to watch based on popular shows, viewer interest in general, and particular shows the user has previously enjoyed. With the help of its users, Netflix evaluates these algorithms and makes changes as needed. This has resulted in Netflix emerging as one of the market leaders in the digital entertainment industry, helping it soar to great heights and in turn the stock prices.

This article discusses how Indian investors can take advantage of exponential gains from promising US Stocks and talks about different ways how to buy Netflix stock in India.

About Netflix

Netflix, Inc. is a Los Gatos, California-based American online content distribution network and production organization. With the aim to make movies and television instantly available to people worldwide via the Internet, Reed Hastings and Bruce Burns founded Netflix in 1997 in Los Gatos, California. Since then, it has rapidly expanded to amass millions of customers and rank among the top subscription services globally. However, in the recent past, there had been a huge fall in Netflix share price by about 35% in April 2022, when it declared that it had noticed a fall in the number of paid memberships for the first time in 10 years.

Netflix has mentioned reviving its economic model and introducing a lower subscription service with the addition of advertisements. Despite this, Pershing Square Capital Management, a hedge fund, managed to sell its stock in the company at a reported loss of £300 million. How will the investors respond to this? Will they follow this move and sell off their Netflix shares? Or do they see a chance to invest in one of the most recognizable brands in the media industry at a deeply discounted price?

Many industry watchers predict that Netflix will overtake Amazon Prime Video as the most widely used on-demand streaming service worldwide. Netflix has a very good chance of becoming a mass market leader in online entertainment if it can effectively manage the shift to the home delivery of television content as well as maintain and grow its enormous global fan base. Hence, suggesting that it could turn out to be wise to invest in the company now.

How to invest in Netflix from India?

Netflix is registered and traded in the NASDAQ and goes by the ticker symbol NFLX. Hence, it is not possible to trade them in Indian stock markets like the BSE or NSE. Therefore, there are other ways how to invest in Netflix stock for Indian investors which are discussed below.

Investing directly in Netflix stocks

Although it is not possible to invest in Netflix in Indian stock markets, foreign brokerages that have an Indian presence or tech platforms like INDmoney provide you with the option to invest in US Stocks by opening a US Brokerage account. INDmoney makes it simple for you to invest in US stocks. Learn how to start investing here. You don't have to pay any brokerage fees in order to invest. Anyone can start trading in US Stocks with INDmoney with as little as Rs. 100. The entire INDmoney process is paperless and takes only a few minutes to finish. 

Investing in ETFs that have a share in Netflix

Hopefully, investing directly in individual equities will be profitable. You can also be eligible for shareholder benefits. However, it may make you more susceptible to unpredicted fluctuations in share prices and stock market volatility. In today's world, even a single tweet, let alone a full-fledged geopolitical battle, can cause a stock market panic.

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 stock certificates. An ETF is an alternative method of investing in Netflix 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, Netflix 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 1.81% share invested in Netflix.

Investing in Mutual Funds that are invested in Netflix

In this situation, your investment will be in a fund of funds, which is a regional mutual fund that invests in a mutual fund available in the US. Do note, as an investment will be made in Indian rupees there would be no investment cap. Although they frequently only provide limited exposure to Netflix, 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.

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