Investment in Froeign Share Market

Investing in foreign stock markets.

Before we proceed, let us clarify some points. Share market will not always move as per our assumption or study. To be precise, it may move exactly opposite what we have assumed or studied. But it is safer to invest in different options of investing, so that the risk in a particular option is minimized to some extent. In such a volatile market, you may have started thinking of different option as compared to domestic share market. Besides many other options, investing in share markets abroad is one.

How to invest in foreign stocks :

In recent years RBI has reduced and yet reducing restrictions on Indians investing abroad offering a range of new investments. ICICI Direct and Reliance Money has allowed investors the option to invest in foreign stock markets. Both ICICI Direcr and Reliance Money allows to invest in US stock exchanged thro' collaboration with US broker. In US exchanges many MNCs also get listed. Reliance Money allows to trade in UK stock exchanges in addition to US stock exchanges. Both these brokerages also provide research and information services so that investors can make better informed choices.
But check following points before investing in foreign markets.

• Foreign investments are taxed at a higher rate.
• Must take into consideration movements in foreign exchange rates.
• International transactions are costlier and complicated.
• Research in foreign markets is major point. It may not move as per our domestic market.

To get rid of all these, you may invest in Indian Mutual funds which are investing in different foreign markets. The risk will be lowered and you will get benefit of aggressive research done by the Mutual Fund Team. You may start investing in MFs and after you become comfortable and bit experienced may start investing in individual stocks.

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