Should an Indian Investor Invest in US or Indian Stock Markets?

Should an Indian Investor Invest in US or Indian Stock Markets?

There were days when everyone had to stay in the lines. Coloring out of the lines was not really possible, even if many wanted to. Let’s get straight to the point here – investments were mostly kept in the Indian markets. Today, with everything happening online – there is so much more widening of our horizons. You can invest in major stock exchanges right from here.

But, before that – what is the best option for you? Would it be investing in the Indian stock market or the US stock market? If you are not sure about it – keep reading, and you will find answers.

How is the Indian Stock Market Different From the US Stock Market?

You must be already pacing the floor about what to do. You might feel the Indian stock market is easier or less risky. On the other hand, you might have good feelings about the returns from the US markets. Looking up all of the US ETF lists, types of mutual funds, and their returns – is quite attractive, to be very honest.

So, first things first – let us know the differences between the two markets.

The major difference between the US stock market and the Indian stock market is that the US stock market has listings of companies from all over the globe – it does not just pertain to the US alone. Indices that are associated with the US stock market have listed companies that come from different nations in the whole world. So, if there is a country emergency – the US market could possibly be dragged down too – but not an immense amount. On the other hand, the Indian stock market is dominated only by Indian companies. So this market can hardly withstand a single event in the country.

When you relate to the Indian stock market, all of the transactions and investments are conducted in the Rupee. With the US stock market – this is done in the USD. The US dollar is a global currency by default and is much stronger and higher than the Rupee. Any investment that you make with the US dollar would give you higher returns – also by default. This ensures more profit for the investors who invest in this market.

Relative to the Indian market, the US market is less volatile. This is because of various external factors, but the US market is somehow known to be a little more stable than the Indian.

What Should You Do?

Well, this is a decision that you have got to think through as it is not hard to invest in either market. But the hard task is deciding which market is best for you. But, based on your investing experience, we can put it in two ways.

1) For the New Investors: For investors who have just come into the market – you might want to have a different approach in the beginning. Firstly, when you are a newbie – you would have so much more to know about the stock market.

Moreover – you would not know how to analyze the market, the different ways to get things done, and much more. It would be new territory, and there would be so much to explore.

Your portfolio has just begun. You have got to make way through known markets before you can wander into the unknown. The Indian stock market – though not completely familiar with, you would know the businesses and companies enough to estimate the minimum.

Though the US stock market returns might look tempting, it is suggested that you first balance your portfolio with national stocks before you can go international.

This post is mostly for you; when you are new in the market – you will go seeking suggestions and recommendations, and the pro would already know where to find what. That is not the case with you, is it? But, if you are determined to explore the US stock market – you can do it with the right research and maybe some professional help. As already mentioned, the US stock market is slightly more stable than the Indian.

For the Experienced Investor: For an experienced investor, you are already a pro at what you are doing. But, the US stock market is a great way you can get started with why you may wonder. The answer is right here – just keep reading.

What Benefits Come Along with Investing in the US Stock Market?

Here are some key points for what kind of benefits the US stock market would give you:

– You will gain access to global companies

As already mentioned, the US stock market has listed companies from all over the world, unlike the Indian stock market. This means you will be investing in companies from all over the globe, and this will broaden your investment horizons even more than you ever expected.

– You Can Invest in Fraction of US Stocks

You would like old US equities infractions, unlike the Indian stock market. After all – owning a single share in the company Amazon is out of reach for most people, you know. You could buy a piece of the company for as less as Rs. 5,000 or even less. With limited money – you could collect more or construct a portfolio of US equities over time.

– You Get Big Returns

An investor who invests in the US stock market earns the same profit, dividend, or both as an investor who invests in the Indian stock market receives. When compared to the Indian stock market, the US stock market has a larger return. The New York Stock Exchange lists companies from all around the world in addition to those from the United States. Investments in US stocks can help you get a good return on your money because global corporations are there, and the return you receive will be high due to a variety of factors.

– You get to diversify your portfolio

All of the major US stock exchanges have companies listed from all over the world, making it a potential investment destination. When you invest in the US stock market, you are diversifying your financial portfolio while also investing in worldwide companies. A national emergency could lower the rating. The effect, however, would be small. On the other hand, Indian firms dominate Indian indexes. Even small unrest in the country might send the indexes crashing. The American stock market is varied, and it has proven to be strong in the face of adversity. However, in the case of India, this is not the case.

– The US Dollar will play your part

According to historical data, the Indian Rupee has been losing value against the US dollar, and there is a probability that this trend may continue. The profit you make from overseas equities is influenced by the rupee-to-dollar exchange rate. Any weakening of the Rupee helps to boost profits if dollar-denominated assets such as US shares appreciate. Even if global markets underperform or remain steady, you benefit if the Rupee falls against the dollar.


It takes up a lot of time and effort to decide which market you want to invest in. But, whatever you decide – make sure you set foot on the grounds with the right kind of research.

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