Take global plunge only after acing domestic markets

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Technological advancements and easing of compliances have now made it possible for investors to invest in foreign stocks via a simple smartphone. The advent of various apps has made it a hassle-free process for those who are looking to invest in globally renowned companies they admire.

A report by Winvesta noted that although Indian investors do not actively put money in overseas stocks, they are slowly warming up to the idea. It said the appetite for international investments continues to increase and themes that are not available in India continue to draw traction.

Although it provides investors more diversity in terms of the basket of offerings, those who are new to the game should first learn the tricks of the trade by experiencing the highs and lows of domestic markets. For many Indian investors, US investing is synonymous with FAANG stocks but they constitute only 17% of the total stock investments on Winvesta’s platform and new stocks have caught the eyes of investors. Technology, EV, and blockchain sectors are the most popular sectors by transaction volume.

According to the report, fractional trading has truly democratised overseas investing for Indians. Investors on the platform are starting with as little as $100 and diversifying it across 10-15 securities. While it is heartening to see that the awareness levels have shot up thanks to the power of the internet, treading with caution should be the mantra. Having options is always good but getting influenced by the sheen and gloss can lead to unwanted and often unfavourable results.

Global investment should be an ace investor’s diversification strategy. The SIP is the ideal way for a beginner. The lure of raking in the moolah is bound to be a strong attraction for investors but they also need to be aware of the pitfalls. Retail investors should always get the basics right and stay away from turbulent, esoteric terrain.