It takes a lot of money to buy Berkshire Hathaway stock (BRK.A), from India. To buy one share of Warren Buffett’s company, you will need to spend almost Rs 3.20crore. You will need more than Rs 12000 to buy one Apple share. However, it is still cheaper to buy stocks in the US than Indian stock exchange shares.
To purchase US stocks from India, first convert Indian Rupees to US dollars. This is why it may not be possible for all Indian investors to invest in US stocks.
There is an alternative: you can still own a fraction of your favorite US stocks. Fractional ownership, which is permitted by the U.S Securities and Exchange Commission, allows fractional ownership. The Indian stock market does not allow Fractional Ownership. MRF Page Industries, Honeywell Automation , Shree Cements, 3M India are some Indian companies that offer one share at prices between Rs 20000 to Rs 85000.
Fractional ownership allows you to take advantage of Dollar cost average (DCA) by purchasing stocks. DCA allows you to invest a fixed amount at regular intervals in order to buy more shares (or a greater fraction) of shares when prices are lower than they are high. Fractional ownership gives you the benefit of DCA by investing a fixed amount instead of buying shares.
Fractional ownership allows you to purchase a fraction of a stock that you may not otherwise be financially able to. You can either buy a fraction of Tesla stock at Rs 5000 per month, or you could buy stocks of Amazon and Microsoft at Rs 50000 per month. This will allow you to build a portfolio of US stocks that can be used over the long-term within your budget.
Fractional Investing is a great way to diversify your portfolio internationally if you have a tight budget. To create an overseas stock portfolio, you can invest 1,000 dollars to buy Fractional Shares from top US companies.
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