Diversification helps an investor get the best out of most asset classes, and international exposure might help us add that zing to our portfolio. The U.S. houses some of the best stocks globally, with great success stories behind their growth.
Investing in U.S. stocks has become as easy as investing in our domestic markets as well. Here’s how you can do it on Groww:
The process of onboarding to invest in U.S. stocks is slightly different as your regular demat account that you use to invest in domestic equities is not sufficient. There are four easy steps to opening an international trading account.
If you invest in companies listed in the U.S., you will need to pay in U.S. dollars. You cannot transact in Indian Rupees while investing in U.S. stocks. Here’s how you can easily add U.S. dollars (USD) to your Groww balance.
Investing in U.S. stocks is a cakewalk from here. You can even buy or sell fractional shares on Groww while investing in U.S. stocks.
Once the funds reflect in your Groww USD balance, you are ready to invest in US stocks on Groww. You can search for the company you are interested in on our U.S. stocks explore page and accordingly invest as per your choice.
Fractional shares: Groww allows investing in fractional shares. This means that you can buy shares in fractions too, and not just in whole numbers. You can buy maybe half a share or 1.5 shares of a company listed in the U.S.
For example, If you want to invest $150 in Amazon, the price of 1 share of Amazon is trading at $3000; fractional investing allows you to buy less than 1 stock. So for your $150, you will get, i.e. 150/3000 = 0.05 shares of Amazon. This helps you invest smaller amounts across a diversified portfolio of stocks.
Market & Limit Orders: Groww supports market and limit orders for U.S. stocks, which means you can invest in U.S. stocks during or after their market hours.
Selling U.S. stocks is as easy as purchasing them. You can simply place you can place a market or limit order for selling the stocks on Groww.
Fractional shares: And just like buy orders, you can even sell fractional shares.
Let’s go back to our earlier example, according to which you are currently holding 0.05 shares of Amazon.
Say it is trading at $3100 per share. The value of your investment rises to $155 from $150.
Say you want to sell shares worth $100.
According to the current market price of $3100, you will be able to sell 0.03 shares (100/3000) for $100.
After selling your shares, you will have 0.02 shares left in your account (0.05-0.03).
USD Credit After A Sell Order: After you sell a stock, the amount will be credited in your Groww USD balance 2 hours before the US market opens on the next trading day – this is a US compliance requirement.
The amount in your Groww USD balance can be transferred to your bank account.
The money will reach your bank account in 2-4 working days after placing a withdrawal request. Please note that the funds will be credited to the same bank account you had selected for adding funds.
Investing in U.S. stocks can help you add that extra length of diversification to your portfolio. The U.S. houses some of the most successful companies in the world. Investing in international stocks requires a lot more research, but it can help you become a part of some of the best global companies’ growth stories.
Happy Investing with Groww!