Here are some things to keep in mind if you want to invest in the US stock marke

1. www.debwan.com/blogs/456407/Here-are-some-things-to-keep-in-mind-if-youwww.debwan.com/blogs/456407/Here-are-some-things-to-keep-in-mind-if-you Unknown Title Other Here are some things to keep in mind if you want to invest in the US stock markets When diversifying across countries, the US stock market is a top choice. It is home to many of the most innovative technology companies and wealth-creating businesses, which offer excellent investment opportunities. It is also attractive because of the low correlation between the countries and US equity markets. Import Key’s US and Global import data, along with global and US trade dataplatform software, gives you the tools to understand a company's operations. It uses visual graphs of supply chains as well as emerging trends in the market. This article will provide information on some things to consider before you invest in the US stock exchange. Things You Need to Know Before Investing In US Stocks 1. The Liberalized Remittance Scheme Under the Liberalized Remittance Scheme (LRS), you can invest in the US stock exchange. Every resident can send up to $250,000 annually under the scheme. This is per person, not including minors. A family of four can send USD 1,000,000 per financial year. This includes investments such as US securities, real property, bank deposits, and other types of investment. All overseas expenses, including student education and foreign travel 1/3

2. 2. Geographical Diversification Geographic diversification can help you to maintain stability in your portfolio. Markets in developed countries are less volatile over the long-term than those in emerging nations. You can participate in global growth by investing in the US stock exchange. ETFs that are listed on the US market can expose you to other economies. ETFs listed on the NYSE such as the EWG ETF invested in large companies. You can also invest in emerging themes on the US stock market. 3. Foreign Exchange and its Impact The fluctuation of the exchange rate is a key consideration when investing in the US markets. The Rupee has experienced a decline of between 3 and 5 percent in value against the US Dollar over the past few years. Investing in US markets means you also have to invest in the US Dollar, and you take on the risk. The US Dollar appreciation can give your portfolio an additional boost and vice versa. Your bank might charge an FX conversion fee, or spread, when you send money to the US for investment purposes. This fee can vary from 0.5 to 2% depending on the bank. 4. Taxation To make your efforts worthwhile, it is important to think about tax implications of foreign investments. The Double Tax Avoidance Agreement (DTAA) between the countries prevents the taxation of the same income from being twice taxed. Two taxes apply to your investment in the US stock exchange Dividend Tax: The flat rate of 30% tax on dividends from the US is applicable to foreign investors. The tax rate for ourcitizens is 25% due to the bilateral tax treaty. Due to the Double Tax Avoidance agreement between the counties, the tax paid in the US may be claimed as Foreign Tax Credit on your domestic filing. Capital Gains Tax: Your investments in the US are exempt from capital gains tax (hooray!). However, you will be subject to tax on foreign capital gains made in India. These two categories are: Long-term capital gains (LTCG): You are subject to 20% tax if you have held the stock for more than 24 months without earning capital gains. Short-term capital gains (STCG): All profits from investments less than 24 month are added to your regular income tax. Standard income-tax rules apply. Also, you should consider the new Tax Credited at Source (TCS) the new rules will apply to all foreign remittances exceeding. This upfront tax can be claimed in the annual tax filing. It is not an additional expense. Learn more about TCS. 2/3

3. 5. Your Life Goals Your investment plan should include your life goals. Your investments should be able help you reach your goals if you plan to travel abroad or move overseas. Your investment portfolio should reflect your expectations if you plan to save $50,000 for your child's education abroad. This could be an additional goal that you need to separate from your diversification goals, where you might want to have exposure to commodities and gold ETFs. 6. Other charges A US brokerage account is required to invest directly in US stocks. With platforms, opening a brokerage account has never been easier than it was in the past. Some doesn't charge any account opening fees or annual maintenance fees. To get started in, you can trade up to three trades per month for zero commission (10 trades the first month), and thereafter it costs $1 per trade. Platforms can charge up to $6.99 per trade. They also have large joining fees and annual maintenance costs that could reduce portfolio performance. Before signing up for a platform, it is important to be aware of these costs. You will need to transfer money from your bank account in order to fund your brokerage account. Depending on the bank, there may be FX and transfer charges. Multiple fund transfers and transactions can result in additional fees for frequent trading. This could also result in multiple currency conversion and remittance charges. Us_Customs_Data US_trade_data Please log in to like, share and comment! 3/3