Here's how you can invest in foreign stocks from India

Strategic investment is an art, and with growing awareness on the equity investment, more and more people are looking to invest in companies based in abroad. With economic recovery in most countries, Indian retail investors are diversifying as well as widening their investment horizon to gain massive returns from foreign equity markets.

For instance, Wall Street is the home to some of the multi-billionaire stocks in the world, like Google, Facebook, Tesla, Microsoft, Amazon, Apple and so many more. Buying these stocks allow Indian investors to diversify their portfolio, seize bigger opportunities and also maximize gains.

However, there are few cons of investing in foreign stocks, like high charges by brokerages. For instance, if you are trading in US stocks, you have to be ready to pay high charges to the brokerages in dollars. Another disadvantage is profits will always be subjected to currency exchange rate. For example, if you invested in a US stock at $1 (Rs 70) in 2019, but a year later, the Indian currency got stronger ($1= Rs 68), then you will have to register some losses. Furthermore, one has to also be mindful of the applicable taxes charged by the US and Indian taxation laws.