Investing In Foreign Equity?
It is a very common practice for an NRI to invest in his own country of origin because of a better understanding and knowledge. Most of the time NRIs do not invest in other countries due to a lack of awareness, proper guidance, or knowledge. However, investing in different countries offers even greater diversification and returns. NRIs can therefore invest in the biggest market in the world – The United States Stock Market.
We at Ashutosh Finserv are here to help, advice, and guide our NRIs in the process of investing in the US Stock Market.
How To Invest In Foreign Equity?
Is It Possible For A NRI To Invest In Foreign Equity Through Direct Stocks, Stock Portfolios & ETFs Or Mutual Funds?
- Any Non-Resident Indian (NRI) across the globe can invest in U.S.A based stocks by linking any international bank account or the NRE (Non-Resident External) account with any Indian bank.
- Remittances for investment up to USD 1 million per individual per year can be made through the NRO account linked to such investments.
- Investment can be made in mutual funds in seamless manner by linking NRE/NRO account like other resident Indians.
Advantages
Why To Invest Through Ashutosh Finserv's Customized Stock Portfolios:
MOAT
The Moat Vest is a curation of companies that have (1) dominant market share in their respective industries and (2) wide business moats. Companies with wide business moats have the ability to maintain competitive advantages, which help them gain market share and improve profit margins into the future. The companies in this Vest may have derived their moat from one or more sources which are – Network Effects, Switching Costs, Scale & Intangible Assets. Investment in companies with deep business barriers and leading market share.
SAAS
This Vest curates companies with Software-as-a-Service (SAAS) business model. SaaS companies derive the majority of their revenue from business-oriented software products that have the following two characteristics:
The software is provided to customers through a cloud delivery model. This means that the software is hosted on a remote and multi-tenant server infrastructure. It is accessed through a web browser, through a mobile device, or as an API.
The software is provided to customers through a cloud economic model as a subscription-based, volume-based, or transaction-based offering.
FAANG+MT
The term was popularized by Jim Cramer, the television host of CNBC’s Mad Money, in 2013, who praised these companies for being “totally dominant in their markets.” FAANG is an acronym referring to the stocks of the five most popular and best-performing American technology companies.
These are: Meta (formerly known as Facebook); Amazon; Apple; Netflix; and Alphabet (formerly known as Google). In addition to being widely known among consumers, the five FAANG stocks are among the largest companies in the world.
In addition to being widely known among consumers, the five FAANG stocks are among the largest companies in the world, with a combined market capitalization of around $7 trillion as of Q1 2022. A few of the many large investors who have added FAANG stocks to their portfolios because of their perceived strength, growth, or momentum.
FUTURETECH
Investment in companies engaged in disruptive technological themes such as AI, IoT, Cloud, 5G, Big Data, Robotics, Analytics, Cybersecurity, etc. The ideas are for futuristic innovations such as Battery Electric Vehicles (Evs), Industry 4.0, Autonomous Cars, Virtual Reality, Smart Wearables, etc.
HEALTHMAGIC
Healthcare portfolio comprises of companies engaged in research for the much awaited Covid – 19 vaccine, along with several other healthcare companies. They are pioneers in medical innovation and therapies developed across the world in the pharmaceutical and biotechnology industry.
Taxation rates for various incomes for Non-Resident in India & U.S.A. from investment in foreign equity investment in direct stocks, stock portfolios & ETFs in India.
| Type of Income | Rate of tax in country of tax residency | Rate of tax in U.S.A. |
|---|---|---|
| Capital gains on sale of foreign shares. | As per rates of income tax in the country of tax residency | No Tax for non-U.S. tax residents |
| Dividend from U.S. shares. (As per Double Taxation Avoidance Agreement – DTAA of U.S.A. with respective country, if available.) | As per rates of income tax in the country of tax residency | 30% |
Taxation rates for various incomes for Non-Resident Indian (NRI) in India & U.S.A. from investment in foreign equity based mutual funds in India.
| Type of Income | Rate of tax in India | Rate of tax in U.S.A. |
|---|---|---|
| Short term capital gains on sale of units of mutual fund. (When holding period is less than 36 months) | Slab rates of income tax | No Tax since there is no income outside India |
| Long term capital gains on sale of units of mutual fund. (When holding period is more than 36 months) | 10% (Without indexation benefit) | No Tax since there is no income outside India |
| Dividend from units of mutual fund. | Slab rates of income tax | No Tax since there is no income outside India |
