A seamlessly synchronised system that expanded far beyond the frontiers of technology and developed into a lifestyle as a mark of elegance and efficiency is referred to as Apple. Everybody wants to be a part of this mammoth $612-billion brand with a topline of $274.52 billion.
So was Rajesh Jha of Delhi. Applemania took him to stand in queue for hours to be one of the first to grab the latest device unleashed by the IT giant. His personal Apple ecosystem gave him a sense of pride and glory. But there was a hunger somewhere deep down. It was not enough. He wanted to own a slice of the brand that he loved so much.
The avid stock market investor decided to buy some shares of Apple Inc to be a part-owner of the conglomerate. A few months ago, his wish came true when Indian companies started offering services that allowed investment in foreign stock markets, primarily in the US.
The service for investing in foreign equities is at a nascent stage, with brokerages launching portfolio services for international stocks. Investors are able to invest in foreign equities since last year. The most recent jump in the fray is ICICI Securities. The brokerage house, which operates a virtual financial supermarket offering investment, protection, and loan products, has tied up with Interactive Advisors to offer curated portfolios of international stocks built on models constructed by leading global fund managers for domestic retail investors. This was preceded by the launch of a global investments offering that allowed investors to take exposures in markets like the US, UK, Singapore, Japan, Germany, and Hong Kong completely digital.
ICICI customers will now be able to invest in portfolios made up of US stocks and ETFs, based on models constructed by renowned global fund managers like Global X by Mirae Asset, State Street Global Advisors, Legg Mason, Wisdom Tree and other portfolio managers. ICICI Securities has 70-odd theme-based portfolios for investors to choose from. These actively managed portfolios offer a differentiated basket of US stocks and Exchange Traded Funds (ETF).
“Many customers have been asking for a facility where they could have experts guiding them for better investment decisions. These are actively managed portfolios and hence will come with features like rebalancing,” says Anupam Guha, Head of Private Wealth Management, ICICI Securities.
ICICI Securities has introduced the service to find takers among investors with low risk appetites and those keen to explore global markets but would drag their feet for lack of handholding. “There is a growing awareness among Indian investors to diversify their portfolio internationally but it has never been easy to access the global markets from India,” says Viram Shah, Co-Founder and CEO of Vested Finance.
Investors now have limited options to invest in select stock exchanges like the NYSE or the Nasdaq. However, as government policies and guidelines unfurl, an individual will be able to invest in the stock exchanges of their choice and their country. It is also expected that the quality of services will improve with real-time settlements. Trading in international shares is likely to be similar to trading in currencies, which one can now do online in the currency of their choice.
“There is a clear interest and demand for international equities as Indian investors look to take advantage of the booming international stock markets,” says Gurpreet Sidana, Chief Operating Officer at Religare Broking. “We live in an age where investors are increasingly aware of global brands in exciting sectors, including new-age businesses, technology and healthcare.”
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Foreign Investment Services
- Investors can choose curated portfolios based on their risk tolerance
- These portfolios may be managed by US investment manager
- They base their advise on extensive research, financial analysis across themes
- Investors can invest in fractional shares with as low as $1
- Certain services are zero commission with unlimited transactions and zero brokerage charges
- Basic and premim plans available