With Vested Finance, you can invest in the US market with ease. No matter what your investment horizon is, Vested Finance helps you get started.
Investing in the US markets comes with a host of benefits. It not only helps you to diversify your portfolio geographically, but by investing in the US markets, yrou can invest in the largest stock market and some of the biggest brands in the world such as Apple, Amazon, Microsoft, Tesla, Alphabet (Google), Meta Platforms (Facebook), and so on.
Another important factor that can’t be ignored is that since the rupee has depreciated substantially against the dollar over the last decade, it effectively adds to your INR returns. So, if you have aspirations to study or live abroad, your investment in US dollars can go a long way in fulfilling these goals.
Vested Finance brings zero commission US investing for Indian investors and guides you on the process of how to invest in the US stock markets. Let’s take a look at how you can start your US investment journey through Vested.
Invest Directly in Stocks
It may be a few years before you can own a Tesla in India, but you can buy shares of Tesla in a few simple steps through the Vested platform. Through Vested, you can invest in stocks listed on the US stock exchanges. So, if you want your portfolio to consist of stocks of some of the biggest companies in the world, you are at the right place.
However, some of the US stocks are expensive. For example, an Amazon share is currently priced at over $2,100, which is about Rs 1.6 lakh. Vested allows you to buy fractional shares of a company for as little as $1. So, even if you cannot buy an entire stock, you can buy a fractional share and still own a part of the company!
Invest in ETFs
Investing in stocks takes a fair bit of knowledge and expertise. Also, let’s consider that you want to invest in the Nasdaq-100 companies. It would not be possible for you to buy each of the 100 stocks separately. Instead, you can invest in an exchange-traded fund (ETF) that tracks the Nasdaq-100 such as the Invesco QQQ ETF.
What are ETFs? ETFs are a collection of many stocks/bonds that are traded under one fund. Though similar to mutual funds, unlike mutual funds they are traded on the US stock exchanges with real-time pricing. Some of the types of ETFs are ETFs that track an index (such as Nasdaq-100 or the S&P 500), a sector (such as energy, healthcare, and financials), or a theme (such as ESG, AI and robotics, and Genomic Science).
Through ETFs, you can get exposure to an index, sector, or theme, which would otherwise be difficult to invest in. Also, since they are mostly passively managed, they are cost-efficient too.
Invest in Vests
The Vested platform also lets you invest in Vests or curated portfolios which are constructed with different goals or themes in mind.
Some Vests are built to enable investors to invest in diversified core assets that balance performance and downside protection, while other Vests are sector or theme-based, enabling investors to focus their investments on specific industries or core themes.
Some of the Vests available on the Vested platform are BlackRock Smart Beta Vest (if you want to employ a long term investment that takes care of smart Beta strategies), the Swensen Portfolio (if you want to enjoy quality growth gains while maintaining downside protection while diversifying) and the Bitcoin Vest (if you want to track the performance of Bitcoin).
Invest in Grayscale Products
Vested is now also letting you invest in Grayscale products through their platform. Grayscale, one of the largest digital currency asset managers, with $40 billion in assets under management (AUM), helps investors access the ever-evolving digital economy. It offers a basket of products through which you can get exposure to digital currencies such as Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Ethereum Classic, and others.
Grayscale also has a large-cap digital fund that helps investors invest in several large digital assets at once, with a heavy weightage in Bitcoin and Ethereum. Like investing through the Bitcoin Vest, investing in cryptocurrency through this route is safe and hassle-free as you do not have to open an account with a crypto exchange and have an electronic wallet to store your cryptocurrencies (if you are directly investing in cryptocurrencies).
Please note, that this is a tax-efficient way of investing in cryptocurrencies as you do not have to pay a flat 30% tax on your gains on crypto transactions and also a 1% TDS on each transaction. Instead, you are taxed according to the rules of capital gains tax.
Fast, Easy, and Cost-Efficient Investing Process
Investing in the US markets has become easier with Vested Direct. It is a simple three-step process.
- Open a Vested Direct account. This is a one-time process. The underlying account is zero-balance savings account with SBM Bank India. This account works like a wallet in which you can load INR.
- Next, load funds into your Vested Direct account via your existing bank’s net banking solution.
- To load USD into your Vested brokerage account, initiate a USD deposit request from the app.
Costs of Investing
There are typically two main types of costs that you need to know about with USD deposits: transaction fees and forex markup. Vested Direct offers:
- Zero transaction fees. Transactions via Vested Direct incur no fixed fees.
- Low forex markup. Vested Direct charges a fixed forex markup of 1.2%, one of the lowest in the industry! The current industry average is higher than 2%.
So, what are you waiting for? Sign up for Vested and become a global investor.
Disclaimer: “This guest post has been authored by the Vested team (https://vested.co.in/). All intellectual property in this post is property of Vested Finance Inc and its affiliates. This guest post has been published on our blog for your information and convenience only, and the contents thereof are not endorsed by ZebPay. ZebPay does not have control on the content of this guest post, and is not responsible for Vested’s website(s) or its content and availability.”