{"id":11613,"date":"2022-05-16T19:12:04","date_gmt":"2022-05-16T13:42:04","guid":{"rendered":"https:\/\/kuvera.in\/blog\/?p=11613"},"modified":"2024-02-22T15:45:13","modified_gmt":"2024-02-22T10:15:13","slug":"indian-vs-us-stock-market","status":"publish","type":"post","link":"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/","title":{"rendered":"Indian vs US Stock Market"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_40 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" area-label=\"ez-toc-toggle-icon-1\"><label for=\"item-69d9989e6f95f\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-69d9989e6f95f\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Why_should_you_compare_Indian_vs_US_stock_markets_before_investing\" title=\"Why should you compare Indian vs US stock markets before investing?\">Why should you compare Indian vs US stock markets before investing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#What_are_the_parameters_for_analyzing_Indian_and_US_Stock_Markets\" title=\"What are the parameters for analyzing Indian and US Stock Markets?\">What are the parameters for analyzing Indian and US Stock Markets?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Indian_Stock_Market_vs_US_Stock_Market_What_are_the_differences\" title=\"Indian Stock Market vs US Stock Market: What are the differences?\">Indian Stock Market vs US Stock Market: What are the differences?<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Portfolio_diversification\" title=\"Portfolio diversification\">Portfolio diversification<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Dollar_as_a_Currency\" title=\"Dollar as a Currency\">Dollar as a Currency<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Global_Factors\" title=\"Global Factors\">Global Factors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Research_Efforts\" title=\"Research &amp; Efforts\">Research &amp; Efforts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Market_Volatility\" title=\"Market Volatility\">Market Volatility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Sensex_vs_Dow_Jones\" title=\"Sensex vs. Dow Jones\">Sensex vs. Dow Jones<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Valuations\" title=\"Valuations\">Valuations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Size\" title=\"Size\">Size<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#How_to_Invest_in_the_US_Stocks_Market_from_India\" title=\"How to Invest in the US Stocks Market from India?\">How to Invest in the US Stocks Market from India?<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Step_1_Open_Kuvera_app_or_website\" title=\"Step 1: Open Kuvera app or website\">Step 1: Open Kuvera app or website<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Step_2_Select_Start_Investing_Option\" title=\"Step 2: Select \u2018Start Investing\u2019 Option\">Step 2: Select \u2018Start Investing\u2019 Option<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Step_3_Complete_all_the_KYC_documentation\" title=\"Step 3: Complete all the KYC documentation\">Step 3: Complete all the KYC documentation<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Reasons_To_Invest_In_the_Indian_Stock_Market\" title=\"Reasons To Invest In the Indian Stock Market\">Reasons To Invest In the Indian Stock Market<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#_Bank_Interest_Rates\" title=\"\u00a0Bank Interest Rates\">\u00a0Bank Interest Rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Regulatory_Policies\" title=\"Regulatory Policies\">Regulatory Policies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Conversion_Loss\" title=\"Conversion Loss\">Conversion Loss<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Scope_For_Growth\" title=\"Scope For Growth\">Scope For Growth<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Easy_Liquidity\" title=\"Easy Liquidity\">Easy Liquidity<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#FAQs\" title=\"FAQs\">FAQs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Is_it_possible_to_invest_in_US_stocks_as_an_Indian\" title=\"Is it possible to invest in US stocks as an Indian?\">Is it possible to invest in US stocks as an Indian?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Who_should_not_invest_in_stocks\" title=\"Who should not invest in stocks?\">Who should not invest in stocks?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#What_is_US_Stock_market_timings\" title=\"What is US Stock market timings?\">What is US Stock market timings?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/#Interested_in_how_we_think_about_the_markets\" title=\"Interested in how we think about the markets?\">Interested in how we think about the markets?<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">While the US economy attracts many investors, international investments with limited understanding are risky. To begin your investing route in US stock markets, you must know the pros and cons. Many people find it challenging to invest in US markets from India. However, investing in the foreign stock market helps you broaden your portfolio. Expanding investments across global economies is as crucial as diversifying across asset classes.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">You must think of ways to distribute risk across an investment portfolio. When India&#8217;s economy opened up, Indians got access to foreign goods\/services and investments. However,\u00a0 investing in the US stock market is not the same as investing in the Indian stock market. It could be daunting at first, but you can expect high rewards once you get used to it.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/www.kuvera.in\/dl\/v2\/?redirect_to=dashboard-invest\/fixed-deposit?source=fd_blog_banner\"><img loading=\"lazy\" class=\"alignnone wp-image-26868 size-full\" src=\"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2023\/10\/400X100-Size.png\" alt=\"FD Rates on Kuvera Feb 2024\" width=\"400\" height=\"100\" srcset=\"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2023\/10\/400X100-Size.png 400w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2023\/10\/400X100-Size-300x75.png 300w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2023\/10\/400X100-Size-150x38.png 150w\" sizes=\"(max-width: 400px) 100vw, 400px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_should_you_compare_Indian_vs_US_stock_markets_before_investing\"><\/span>Why should you compare Indian vs US stock markets before investing?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<blockquote class=\"blockquote\"><p><span style=\"font-weight: 400;\">&#8220;Never invest in a company you don&#8217;t understand.&#8221;\u00a0 &#8211; Warren Buffet&#8217;s<\/span><\/p><\/blockquote>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The above advice has become every investor&#8217;s favorite quote. You can apply the same reasoning while investing in a new marketplace. Instead of sticking to local and limited investing options, an astute investor would comprehend the US market to begin their investing path. After all, investors are frequently told to diversify their investments geographically by investing in domestic and overseas markets.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Statements like, \u2018The US indices have beaten <a href=\"https:\/\/kuvera.in\/explore\/stocks\/c\/all\">Indian stock markets<\/a> by 8-15% over the previous decade\u2019 are frequently used to sell US investments. However, if investors take such remarks at face value and anticipate the same performance rate in the future, they will most certainly be disappointed. After all, past performance is no guarantee of future results. As a result, we&#8217;ve developed several criteria against which both the US and Indian markets may be analyzed. This will help you in arriving at the best selection.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_are_the_parameters_for_analyzing_Indian_and_US_Stock_Markets\"><\/span>What are the parameters for analyzing Indian and US Stock Markets?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">For ordinary Indian investors, the US stock markets have long been a puzzle. There are some of the world&#8217;s largest corporations present in the US stock market. Given that there are several options to invest in the US stock markets, both directly and indirectly, here\u2019s a case study of<\/span> Indian vs US stock markets<span style=\"font-weight: 400;\"> and how they have performed over the previous ten years. We utilized the Dow Jones Industrial Average Index (DJIA) to reference US markets and the BSE Sensex for Indian stock markets. Both the stock markets will be compared with the following parameters:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Performance in terms of returns<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Correlation between the two markets<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Volatility<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Top-performing sectors<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Valuations<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Size<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Indian_Stock_Market_vs_US_Stock_Market_What_are_the_differences\"><\/span>Indian Stock Market vs US Stock Market: What are the differences?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Portfolio_diversification\"><\/span>Portfolio diversification<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Not only corporations in the United States but companies from all over the world are represented in all of the major US stock market indices. Barring a national emergency, not many disturbances can influence the US stock market.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">On the other side, only Indian enterprises dominate the Indian Indices. Even minor turmoil in the country might cause a dramatic drop in the indexes. The US stock market is varied and resilient in the face of adversity. However, in the case of Indian stocks, the same cannot be said.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">What&#8217;s intriguing about US equities is that you gain exposure to the US and the rest of the globe since many firms have worldwide operations yet are listed in the US stock exchange.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Because of the coronavirus pandemic, worldwide stocks have witnessed a recurring drop, with declines ranging from 20% to 30%. Investing in diversification will be helpful at this time. By the 8th of June 2020, the US Stock Exchange had regained all of its coronavirus-induced losses. However, at around the same time, the Sensex was down 17%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Dollar_as_a_Currency\"><\/span>Dollar as a Currency<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">We earn in INR and pay in USD in India. Because the rupee&#8217;s value is falling, it encourages investment in dollars. As the value of the rupee falls, the value of the Indian stock market portfolio falls as well because all investments are made in INR. As a result, if you invest in the dollar, the value of your investment rises.\u00a0 Even if the portfolio remains static, the investments expand when the US dollar rises. As a result, investing in US dollars yields a better return than investing in Indian rupees.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Global_Factors\"><\/span>Global Factors<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The US market offers the facility to invest in large worldwide corporations such as Flipkart, Amazon, Instagram, etc. If your portfolio is made up of such multinational corporations, it will evolve according to competitive trends. You will be able to expand your corpus more efficiently if you work with these worldwide organizations.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Investing in the Indian stock market, on the other hand, includes surprisingly many small-cap to midcap firms. In India, a firm can go public after three years of profitability. Due to this, investors in India cannot participate in domestic success stories.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">However, in the United States, you can invest in giant corporations that have started new services. It allows investors to invest in a variety of creative concepts.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">While the Indian startup environment has been booming, the US markets continue to house all big firms at the forefront of their respective industries with new offers.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Many startups face postponed gains and growth in market share, thereby shutting out most Indian investors from the opportunity to demonstrate their faith in innovative business ideas. However, because of the comparatively flexible rules in the United States, investors from all over the world may invest in new models &#8211; and we&#8217;ve seen how this frequently plays out. Uber, Amazon, Tesla, and Facebook are all products of the US marketplace and its paradigm. Many investors might be critical of their investment strategy, but they know there are possibilities to capitalize on new ideas.\u00a0\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">As a result, the US market is a more attractive proposition since it provides worldwide exposure and allows investors to expand with the world&#8217;s largest corporations, such as Google, Amazon, and Facebook.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The laws of the Indian market are more strict than those of other worldwide marketplaces. Startups are booming in India, but most investors are not ready to invest in early-stage startups due to these taxation regulations.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Research_Efforts\"><\/span>Research &amp; Efforts<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Investments in the Indian stock market and the US stock market are accompanied by economic analysis. The Indian stock market has a slight advantage over US markets in terms of research and effort. The research required for the US stock market is extensive, and some may choose to sacrifice the prospect of higher returns for hassle-free stock options in the Indian market.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Investing across many geographies demands proper research. Each country&#8217;s economy differs, and other worldwide variables impact the markets. As a result, as an investor, keeping track of several markets may be time-consuming and intimidating. In addition, one must stay updated on numerous aspects that may influence the stock market. It is where the Indian stock market wins hands down against the US stock markets.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Market_Volatility\"><\/span>Market Volatility<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Volatility is defined as the standard deviation of returns around the mean. It is a decent measure of how much the market rises and falls throughout the specified period (preferably short-term).<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Many long-term investors are unconcerned by volatility, but it is crucial if you&#8217;re in a very volatile market. A market downturn may drive you to sell early.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Compared to the Indian stock market, long-term investments in US markets have lower volatility. It is why investors are urged to distribute their money among various assets, as diversification reduces risk. So, when an investor has a diverse portfolio and invests in the overseas stock market, their portfolios change direction over Indian indices.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">As a result, volatility can be used as a risk indicator. While calculating volatility, we looked at the past ten years&#8217; results. In the previous ten years, the Dow Jones Index had a volatility of 3.92%, while the BSE Sensex had a volatility of 5.06%.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Investing globally thus becomes a solid diversification strategy. Furthermore, investors that invest abroad might anticipate their portfolio to react differently than in Indian markets.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Sensex_vs_Dow_Jones\"><\/span>Sensex vs. Dow Jones<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It is often recommended to advance geographically by engaging in US markets. As opposed to the Indian stock market, the foreign share market has a more equitable distribution of industries. Over the last five to ten years, Dow Jones has outperformed Sensex. Compared to the US market, the Indian stock market trades at greater multiples and delivers lower dividend rates. However, both the markets provide fair returns to their investors because of the small number of stocks that provide the majority of the profits.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Valuations\"><\/span>Valuations<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In terms of valuation, the Dow Jones Industrial Average (DJIA) has a PE Ratio of 19, whereas the Sensex has a PE Ratio of 25.28. It is not to say that the Indian market is overpriced and that you should only invest in the US markets. It simply suggests that the market expects the earnings of Indian firms to expand faster than US companies.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">It may not be an unrealistic forecast, given that India&#8217;s GDP has recently increased at a higher rate than the US GDP. The index&#8217;s profit after tax of Indian firms climbed 12.6% when compounded annually over the previous ten years. At the same time, the US stock market has performed at 115% multiplied annual growth.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Size\"><\/span>Size<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">There is no resemblance in terms of size between the two. While the US stock market contributes to 43.2% of the world\u2019s market capitalisation, the Indian stock market contributes to 2.97% of the world market cap. Given the two countries&#8217; respective sizes, this should be no surprise.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Invest_in_the_US_Stocks_Market_from_India\"><\/span>How to Invest in the US Stocks Market from India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">You can get started by investing via Kuvera to manage your international portfolio.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Step_1_Open_Kuvera_app_or_website\"><\/span>Step 1: Open Kuvera app or website<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On Kuvera, go to <\/span><span style=\"font-weight: 400;\">Invest <\/span><span style=\"font-weight: 400;\">and then select US Stocks.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Step_2_Select_Start_Investing_Option\"><\/span>Step 2: Select \u2018Start Investing\u2019 Option<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">You will be directed to two options. You can either create a new portfolio with a new Vested US investing account or link an existing account.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Step_3_Complete_all_the_KYC_documentation\"><\/span>Step 3: Complete all the KYC documentation<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Before you open an account, it\u2019s mandatory to complete your verification process by filling the KYC form. Upload your PAN card for address proof and pay the account opening fee. Once done, you will be able to track the account opening statement from the portfolio section.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Reasons_To_Invest_In_the_Indian_Stock_Market\"><\/span>Reasons To Invest In the Indian Stock Market<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Many investors in India are unsure how to invest in US stocks. <\/span><span style=\"font-weight: 400;\">On the other hand, others wonder if it&#8217;s wiser to invest in India than in the United States. While some of us may benefit from investing in US equities and funds, others may be better off investing solely in India.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">There are a few factors to keep in mind when investing in Indian markets or international equities and funds. The decision to invest in one or both depends on a variety of criteria, including the amount of money you have for investment, the time horizon you&#8217;re looking at, and the risk you&#8217;re willing to face.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"_Bank_Interest_Rates\"><\/span>\u00a0Bank Interest Rates<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Bank interest rates in India can reach as high as 7%, depending on a number of factors. Interest rates in the United States, on the other hand, are substantially lower. In India, the account from which you invest money will receive a higher rate of interest.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Regulatory_Policies\"><\/span>Regulatory Policies<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The market in the United States is highly regulated, which benefits US citizens more than foreign investors. <\/span><span style=\"font-weight: 400;\">You&#8217;ll be more aware of regulatory changes in India and less likely to miss any important financial news.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Conversion_Loss\"><\/span>Conversion Loss<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">There are underlying costs like conversion fees and taxes when currencies get converted back and forth from INR to USD. <\/span><span style=\"font-weight: 400;\">So, even if you earn in dollars, you can never be sure whatever you calculate as your returns is what you would get.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Scope_For_Growth\"><\/span>Scope For Growth<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As a growing market, India has a higher room for expansion than more developed markets. It might also be a lucrative factor for investors with funds in other countries.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Easy_Liquidity\"><\/span>Easy Liquidity<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you invest in the Indian stock market, it is safer to liquidate your investment anytime you need cash. Of course, this is dependent on the type of investment you&#8217;ve made.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<p>When considering Indian stocks vs US stocks, you must not forget that both of them have their own advantages and disadvantages. On the other hand, access to international markets will get portfolio returns in today&#8217;s investing climate. The stock market in the United States is more diverse and less volatile than the stock market in India. Investors can participate in the growth of startups and invest in the world&#8217;s best firms. While an Indian investor&#8217;s portfolio should still be dominated by Indian investments, diversifying a little and including US stocks in your kitty is beneficial.<\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Is_it_possible_to_invest_in_US_stocks_as_an_Indian\"><\/span>Is it possible to invest in US stocks as an Indian?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Investors in India will be able to trade certain US stocks via the NSE International Exchange (NSE IFSC), a totally owned subsidiary of the National Stock Exchange, starting from March 3, 2022. Investors can purchase NSE IFSC receipts on US stocks under unsponsored depositary receipts (DRs).<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Who_should_not_invest_in_stocks\"><\/span>Who should not invest in stocks?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you lack patience or don\u2019t believe in the mechanism behind stock markets, it\u2019s better not to invest them. Never buy or sell stocks on an impulse, as incorrect entry and exit points can cost you heavily.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"What_is_US_Stock_market_timings\"><\/span>What is US Stock market timings?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The US stock markets\u00a0 timings will be from 9:30 AM to 4PM EST, which is 7 PM to 1:30 PM in IST.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Interested_in_how_we_think_about_the_markets\"><\/span>Interested in how we think about the markets?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Read more: <a href=\"https:\/\/kuvera.in\/blog\/category\/zen-and-the-art-of-investing\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Zen And The Art Of Investing<\/strong><\/a><\/p>\n<p>Watch\/hear on YouTube:<\/p>\n<p><iframe loading=\"lazy\" title=\"Kuvera Insights\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/videoseries?list=PLDSzQdT9nLmCysU31bg4Ngh7WY2p3UiiI\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe><\/p>\n<p>Start investing through a platform that brings goal planning and investing to your fingertips. Visit <a href=\"https:\/\/www.kuvera.in\/\"><strong>kuvera.in<\/strong><\/a> to discover <a href=\"https:\/\/kuvera.in\/blog\/direct-plans-better\/\"><strong>Direct Plans<\/strong><\/a> and <strong><a href=\"https:\/\/kuvera.in\/explore\/fixed-deposit\/c\/all\">Fixed Deposits<\/a><\/strong> and <a href=\"https:\/\/kuvera.in\/user\/login\"><strong>start investing today.<\/strong><\/a><\/p>\n<p>#MutualFundSahiHai #KuveraSabseSahiHai!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>While the US economy attracts many investors, international investments with limited understanding are risky. To begin your investing route in US stock markets, you must know the pros and cons. Many people find it challenging to invest in US markets from India. However, investing in the foreign stock market helps you broaden your portfolio. Expanding [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary understrap-read-more-link\" href=\"https:\/\/kuvera.in\/blog\/indian-vs-us-stock-market\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":11,"featured_media":11614,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[479,99,679],"tags":[688,767,397],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Indian Stock Market vs US Stock Market Investment<\/title>\n<meta name=\"description\" content=\"Indian Stock market is different from US stock market. Investing in us stock market with small knowledge is dangerous. 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