How to Invest in Nasdaq from India: All Indian investors need to know
If you think of some of the world's most popular companies, all those will be from the US - Facebook, Apple, Google, and many more. Until recently, owning shares of these companies was not easy for investors in India. However, now it is super easy to own shares of these companies.
What is NASDAQ?
NASDAQ is an American stock exchange designed to enable investors to buy and sell stocks speedily and transparently. It stands for National Association of Securities Dealers Automated Quotations and was created in 1971.
As of today, more than 3,300 companies are listed on the NASDAQ exchange. In terms of securities values, it is the second-largest stock exchange. The companies listed on NASDAQ are from different sectors like capital goods, energy, finance, healthcare, consumer durables, and nondurables and technology. However, it is well-known for its high-tech stocks.
How to invest NASDAQ stocks from India?
If you are wondering - how to invest in NASDAQ stocks from India, then you are in the right place. You can invest in NASDAQ from India in two ways:
- Direct Investments: You can invest in the NASDAQ stocks directly on the INDmoney app. Our zero-cost structure allows users to start trading without any account opening fees or commission on buying and selling. It takes less than 3 minutes to open a US stocks account with INDmoney. Learn here. If you find some US stocks expensive, you can take advantage of fractional trading and start your US investment journey for as little as $1.
- Indirect Investments: You can invest indirectly in the NASDAQ using two methods:
- Mutual funds: You can invest in mutual funds that are focused on the NASDAQ index.
- Alternatively, you can gain exposure to NASDAQ stocks through ETFs. You can purchase NASDAQ ETFs on the INDmoney app.
How to invest in NASDAQ from India through an ETF?
One of the cheapest ways to invest in NASDAQ stocks from India is through ETFs. An ETF is a collection of many stocks which are traded under a fund. They are similar to a mutual fund. The difference is that they are passive funds - the underlying stocks track an index.
You can trade in NASDAQ from India by buying ETFs available in India. Some of the ETFs are Motilal Oswal NASDAQ 100 ETF and ICICI Prudential NASDAQ 100 index fund.
Using the INDmoney app, you can also invest in NASDAQ ETFs to diversify the risk while also earning from US stock market gains. INDmoney enables you to choose from a wide range of ETFs. You can also choose an ETF related to the size of its stocks (like Vanguard large cap ETF, Vanguard midcap ETF, or Vanguard small cap ETF) based on your risk profile and return expectations.
How can I invest in Nasdaq?
You can invest in Nasdaq by directly buying stocks, through mutual funds or ETFs. On the INDmoney, you can invest in Nasdaq ETFs at zero cost.
Can I buy shares on Nasdaq from India?
You can invest in the NASDAQ stocks from India using INDmoney. Our zero-cost structure allows users to start trading without any account opening fees or commission on buying and selling.
Can I invest in US stocks from India?
Yes, there are three ways to invest in US stocks from India:
• Investment through apps
App-based investment has gained popularity amongst investors. INDmoney is one of the leading apps that help you invest in foreign markets.
• Through an Indian broker who has tied up with a foreign broker
Many large broker firms have tie-ups with international brokerage firms. You can leverage these brokers for foreign investments.
• An account with a foreign broker
There are brokerage firms that have offices in India where you can walk in and open an account for investing in foreign equities, including those listed on NASDAQ and NYSE.
Do I pay tax in the US or India?
Your investment in US Stocks is fully regulated. India and the U.S. have signed a Double Taxation Avoidance Agreement (DTAA).
This prevents Indian Residents from Double Taxation.
Any Capital gains on your US stocks investments are only taxed in India.
Upon creation of your US stocks 2 in 1 account, your broker will file a US tax compliance form called the W-8BEN form (Declaration) with your details and Nationality.
This form acknowledges that you are a foreign investor earning an income in U.S. & further allows you to take capital gains tax exemptions in the U.S. More info on taxation here
However, you will be responsible for paying either short- or long-term capital gains tax in India based on your investment horizon.