Thanks to globalisation, the world is smaller. Telecommunication tools like the Internet, allow anyone to take advantage of markets, no matter where they are located geographically. As one of the biggest developing economies, India's growth has averaged 7.5 per cent in the last several years. Financial counsellors call buying stocks outside of your home country "diversification." This article can help you diversify by buying shares in India.
- Skill level:
Things you need
- Brokerage Account
Create or log in to your online brokerage account. Larger firms like Fidelity and Charles Schwab are more likely to have options for buying international stocks and funds. Check the brokerages international trading options buy calling or searching for the "International Trading Desk" on their website.
Research the Indian companies you are interested in. One example of a large Indian company is Hindustan Unilever, a personal consumer company that sells products such as food, detergent, coffee and soap. To buy shares in this company, contact your broker or log in to your online brokerage page and click trade.
Input the ticker symbol BOM:500696 and the number of shares you wish to purchase. Hindustan Unilever trades on the Bombay Stock Exchange (BSE) so only brokerages that have agreements with the BSE can buy and sell shares.
Click submit with a market order for the easiest kind of trade. For companies like Hinustan Lever listed on Indian exchanges, the stock may only be available to purchase when the BSE (Bombay Stock Exchange) or the NSE (National Stock Exchange of India) are open.
Receive confirmation from your brokerage once the trade is executed.
Tips and warnings
- You can also buy shares in India by purchasing an ETF, which is designed to track the whole Indian economy. Try the Powershares India Portfolio (symbol PIN) or WisdomTree's India Earnings (symbol EPI). Both of these ETFs can be bought easily as they trade on U.S. exchanges.
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