WHAT IS THE DIFFERENCE BETWEEN INDIAN AND US STOCK MARKET?

500 Per Crore / Sep 28, 2021

Trading in the stocks of US market is attractive and effective but making your trading decision with half knowledge is dangerous. To begin your trade in US stocks, you should be aware of the pros and cons of the market. Investing your savings in the international stock market allows you to diversify your portfolio. When compared to the international market, the Indian equities have great volatility, with bigger swings in return.

 

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In this blog, let's discuss about few factors in which you can compare the Indian and US stock markets

 

1. Portfolio Diversification:

Investing in US stocks will not only help you to get an exposure in the United states market but also in the global market. This is because many of the companies in the world have global operations. You would have observed about a recent fall in the market due to this pandemic but the diversification of portfolio was really effective during this time. Investing your savings in different asset classes can minimize your loss.

 

2. Currency:

In India, an investor earns the returns in INR and spend in dollars. Since the value of the rupee has been depreciating, it makes sense to invest in dollars. The depreciation in the rupee value also decreases the portfolio of the Indian stock market. Making your investment in dollars can increase your value in the investment.

 

3. Global Factors:

Investing in the US stock market will help an investor to invest in the big companies with better future value. As an investor, if you invest in global companies you would get an opportunity to grow your corpus more effectively. In Indian stock market investment involves comparatively small companies. By investing in the US stock market, an investor can get an opportunity to invest in many innovative models.

 

4. Research & Efforts:

Before investing in the US and Indian stock market, you are recommended to do a deep research on the market. Analyzing the market trends will help you to choose the best performing stocks for both long term and short term investments. The Indian stock market has some edge over the US stock market when it comes to research and efforts.

 

5. Market Volatility:

When compared to the Indian stock market, the US stock market possess low volatility in the long run. As discussed earlier, investing in the Indian equities would show greater volatility and helps you to gain better returns over the years. This is the reason investors are advised to spread their money across various assets in order to reduce exposure to risk.

 

Investing In US Stock Market Vs Indian Stock Market:

It's a fact that both markets are unique and have advantages of their own. But investing in global stocks in the US stock market will help you to invest your valuable savings in the big companies for a better future return. The Indian market remains a significant part of an investor portfolio and we can't deny the fact that the US market makes a better place for the Indian investor's portfolio.

 

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