Benefits of Investing in Us Stocks

US stock investing advantages

As an investor in the US markets, you can either actively in stocks, indirectly in mutual funds or passively in the US stock market indices. The US market offers a variety of Indices. There are a number of US indices like the Dow, the NASDAQ and the S&P 500 where investors can put money passively .There are also sectoral US indices, which can help take a more aggressive and concentrated view.

Let us look at some of the key benefits of investing in US stocks amid the current global headwinds. 

Advantages of investing in the US markets

1. When the US allows investing in fractional shares, it is possible to buy even high priced stocks in fractions. This reduces your entry barrier to investing in the US stocks, especially since it needs to be eventually converted into dollars.
2. The normal benefits of investing in Indian equites is also available in US equities like dividends and capital gains. 
3. The US markets not only lists American companies but a large number of global companies. 
4. If you are invested in the US equities, then the returns will be dollar returns. If you are an investor, you would gain from a weakening rupee, as has been the trend in the last one year. 
5. Indian markets have often been uncorrelated with the Indian markets. However, sitting in India and investing only in Indian equities, you cannot handle that. The answer is to invest in US companies since it diversifies your portfolio and reduces overall risk.
6. Investors don’t have to worry about the safety and security of their money. Investing in equities is risky by default. 
7. The double taxation avoidance agreement between the US and India ensures that there is no dual taxation since the investors gets credit offset for the 25% dividend tax deducted at the time of payment in the US.