Markets: Nvidia has become a focal point for global stock market enthusiasts, achieving a remarkable $2-trillion market cap on February 23. With the stock surging almost 22 percent in two days and more than doubling since the previous year, the company’s extraordinary ascent has garnered attention worldwide, leaving investors eager to join the momentum.
Nvidia’s substantial gains are attributed to its significant role in the AI race, where artificial intelligence models leverage the company’s graphic processors. Reporting a staggering revenue of $22.1 billion on February 21, marking a 265 percent increase from the previous year, Nvidia exceeded Wall Street expectations. With net income soaring by 769 percent year-on-year to $12.3 billion, the company’s robust performance underscores its prominence.
Indian investors seeking to participate in this surge and invest in Nvidia or other US stocks like Microsoft or Apple have diverse options. They can opt to open an international trading account for direct stock purchases or invest in US stocks through ETFs and Mutual Funds. Traditional Indian brokerages such as ICICI Direct, HDFC Securities, IIFL Securities, Kotak Securities, and Axis Securities offer avenues for Indian investors to open international trading accounts, leveraging collaborations with global platforms to facilitate overseas investing services for local clients.
Indian investors looking to invest in Nvidia or other US stocks have various options:
- Apps and Traditional Brokerages:
- Apps like Angel One, Vested, and IND Money offer the option to open an international trading account for direct stock purchases.
- Traditional Indian brokerages like ICICI Direct, HDFC Securities, IIFL Securities, Kotak Securities, and Axis Securities also facilitate international trading.
- International Brokerages:
- Investors can use international brokerages such as Interactive Brokers, Charles Schwab, Ameritrade, and Stockal to open overseas trading accounts and trade directly.
- Transfer Limits:
- Investors need to be aware of the Liberalized Remittance Scheme (LRS) limit, which allows them to transfer up to $250,000 per year to the US trading account.
- Mutual Funds and ETFs:
- Investors who do not want to open another account can invest in Nvidia through mutual funds or ETFs.
- Popular ETFs like Motilal Oswal Nasdaq 100 and Mirae Asset NYSE FANG+ provide exposure to top US stocks, including Nvidia.
- Mutual Funds with Nvidia Exposure:
- Mutual fund houses like Axis, ICICI, Mirae, and Motilal have holdings in Nvidia.
- Mutual funds with exposure to Nvidia include Franklin India Feeder – Franklin U.S. Opportunities Fund, Edelweiss US Technology Equity FOF, PGIM India Global Equity Opportunities Fund, and Navi US Total Stock Market FoF.
Before making investment decisions, investors should assess their financial goals, risk tolerance, and conduct thorough research. Seeking advice from financial professionals can also provide tailored guidance based on individual circumstances.