Global Investment Solutions

Global Investment allows investors to gain exposure to a broader range of industries, economies, and currencies, potentially enhancing portfolio returns while managing risks. The globalization of financial markets has opened up vast opportunities for investors to diversify their portfolios and capitalize on growth prospects beyond their domestic markets. In this article, We’ll take a closer look at how we can invest in International or Global stock markets.

With advancements in technology, deregulation, and the ease of capital flows, stock markets around the world have become increasingly interconnected. Investors can now access and invests in foreign markets with relative ease through the following modes:

1. Exchange-traded funds (ETFs)

A global exchange-traded fund (ETF) is a type of investment fund that pools money from investors to invest in a diversified portfolio of stocks, bonds, or other assets from multiple countries around the world. Unlike traditional mutual funds, ETFs are traded on stock exchanges, allowing investors to buy and sell shares throughout the trading day at market prices. Some examples of Global ETFs are:

1. Mirae Asset Hang Seng TECH ETF
2. Mirae Asset NYSE FANG+ ETF
3. Motilal Oswal NASDAQ 100 ETF
4. Motilal Oswal Nasdaq Q 50 ETF
5. Nippon India ETF Hang Seng Bees

2. Global Brokerage Platforms serving Global Investment

Indian residents have the option to open an international trading account either through an Indian brokerage firm that partners with global brokers such as Axis Securities, ETrade, HDFC Securities, ICICI Direct, Kotak Securities, etc or directly with a foreign brokerage firm that operates in India, such as Ameritrade, Charles Schwab, Interactive Brokers, and others.

3. International Mutual Funds for Global Investment

International mutual funds are a great choice for investors seeking to diversify their portfolios with stocks from other countries without requiring advanced analysis skills or dedicating significant time to researching individual stocks. It invest in a diversified portfolio of securities from various countries outside the investor’s home country. These funds are managed by professional fund managers who select and manage the fund’s investments according to its stated investment objective. Followings are the few examples of International Mutual Funds:

1. DSP US Flexible Equity Fund
2. Nippon India Japan Equity Fund
3. Franklin India Feeder – Franklin U.S. Opportunities Fund
4. ICICI Prudential US Bluechip Equity Fund, etc

4. ADRs [Best solution for Global Investment]

“ADRs” stands for American Depositary Receipts. These are certificates issued by U.S. banks representing shares of foreign stocks that trade on U.S. stock exchanges. It make it easier for U.S. investors as well as Global Investor to invest in foreign companies. Indian Investors can also buys ADRs of different global companies listed in American Stock Exchanges without deal country specific currency with the help of global Brokerage Platforms. Each ADR represents a specific number of shares in a foreign company, and they are traded in U.S. dollars like regular stocks. Some examples of ADRs are:

1. Atlassian Corp Plc (An Australian Company)
2. Alibaba ADR (A Chinese company)
3. Bank Central Asia ADR (An Indonesian Company)
4. Sumitomo Mitsui Financial ADR (A Japanese Company)
5. Chorus ADR (A company of New Zealand), etc

5. IDRs

IDR is a financial instrument issued by a Indian depository against underlying equity share of a foreign company, used to raise fund from the Indian Share Market. Currently No IDRs are listed in BSE or NSE. Standard Chartered PLC Ltd(IDR) was the only IDR in Indian Stock Market which was terminate itself from the Exchanges in the year 2020